Equipment acquisitions that are misclassified as maintenance expense most likely wouldbe detected by an internal control that provides for(1) segregation of duties of employees in the accounts payable department.(2) authorization by the board of directors of significant equipment acquisitions.(3) investigations of variances within a formal budgeting system.(4) independent verification of invoices for disbursements recorded as equipmentacquisitions.

Q: State the appropriate audit opinion that the auditor would require.

A: Among various Auditor's Opinions, one of the opinion can be Disclaimer of Opinion.  Auditor needs to…

Q: Minimum benefit from independent internal verification is obtained when: Select one: a.…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Performance audits differ from financial audits in that A. The GAO's "general standards" do not…

A: The correct answer is B. In conducting performance audits, the auditors do not necessarily attest to…

Q: Jones Engineering has $60,000 in assets. They also have $25,000 in liabilities and $5,000 in…

A: Following the expanded accounting equation, we were able to squeeze the amount of revenues by…

Q: Which of the following outcomes is NOT a desired outcome of a financial audit?    Test internal…

A: A financial audit is an independent review of an organization's financial statements, records, and…

Q: In which of the following situations would observation not provide the most compelling audit…

A: Introduction:- Audit evidence includes all of the information used by the auditor to support the…

Q: The auditing procedure that could least likely lead the auditor to find unrecorded property, plant,…

A: Audit: An audit is a formal verification of an organization's account that is usually conducted by…

Q: The revenue cycle requires regular review. Identify at least two types of misstatements found in the…

A: The objective of this question is to identify two types of misstatements that can occur in the…

Q: Substantive analytical procedures are performed by auditor: To identify and assess detection risk To…

A: Auditor is the person who is responsible for performing audit work. Audit means checking and…

Q: 1. Please explain Audit of Long-term Liabilities 2. Please explain ISA540 and AU-C 540. 3. What are…

A: Long-term liabilities  relate to  fiscal  scores or debts that a company is  obliged to pay over an…

Q: audit engagement

A: Statement 1 is correct because an audit engagement is opinion based. The auditor conducts the…

Q: A limitation on the scope of the auditor’s examination sufficient to preclude an unqualified opinion…

A: The question is asking about a situation where the management's actions would limit the scope of the…

Q: Auditors of financial statements are designed to obtain reasonable assurance of detecting material…

A: The auditor is required to obtain reasonable assurance that financial statements aa a whole are free…

Q: Which of the following is not a common procedure for assessing operating effectiveness of preventive…

A: Preventive controls is a measure of safeguards implemented by an organisation to proactively…

Q: The main purpose of the auditor's consideration of internal control for a non-SEC client is to A.…

A: Audit of internal control is conducted by auditors to assess its efficiency and effectiveness and…

Q: Based on the information in scenario C, classify the information (1-8) according to the elements of…

A: Here given the details of elements of Auditing findings which are involved with the each and every…

Q: 1. What is the primary reason that auditors’ assess internal control? a)To determine the risk of…

A: Internal Control:It is a process that is being  effected by an entity's board of directors,…

Q: control risk in order to reduce

A: Statement 1 is correct because by performing additional compliance tests, the auditor can ensure…

Q: Internal audit aims to conduct systematic scrutiny of records. Internal audit is described as…

A:

Q: The revenue cycle requires regular review. Identify at least two types of misstatements found in the…

A: The revenue cycle is the process of providing customers with goods and services and obtaining…

Q: Which of the  factors below does not have to be  considered by the auditor in determining the Key…

A: Key audit matters (KAM) are the significant matter which was found during the audit of the financial…

Q: An auditor discovered the following matters while performing tests of controls: 2.A purchase of raw…

A: a)Control - Enforcing clear record-keeping and documentation procedures.

Q: Which of the following is most likely to be presumed to represent fraud risk on an audit?

A: The correct answer is: (D) improper revenue recognition. There are a few different types of fraud…

Q: The decision to audit an entire population is usually dependent upon management's express written…

A: Audit sampling is the use of an audit procedure on a selection of the items within an account…

Q: Which of the following procedures is usually performed by the auditor to determine if obsolete…

A: Obsolete inventory is an inventory that gets obsolete and remains unserviceable and loses its…

Q: ZZZ best fraud case, auditors obtained third party confirmation to support the contract, reviewed…

A: Audit procedure: Auditor applies procedures to perform audit engagement. These procedures include…

Q: When the risk of material misstatement due to fraud is considered high in a particular area, which…

A: The risk of substantial misstatement due to fraud refers to the possibility of financial statements…

Q: An auditor discovered the following errors and irregularities while performing tests of controls:…

A:

Q: nternal control should be designed to provide reasonable assurance that       a. Management’s…

A: Auditing refers to the procedure of evaluating and analyzing the books of accounts prepared and…

Q: maximur

A: the auditor after considering the client's internal control over receivables increased the…

Q: Which of the following conditions identified during fieldwork of an audit is most likely to affect…

A: The correct answer is: (D) Missing documents  Missing documents would most likely affect the…

Q: Which of the following is not an implication of PCAOB Auditing Standard No. 5 and Section 404 of the…

A: It is a process implemented by organizations to provide reasonable assurance of achieving their…

Q: Applying substantive tests to the details of asset and liability accounts as of an interim date,…

A: SOLUTION- Substantive testing is an audit procedure that examines the financial statements and…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.