Master accounting External auditors are responsible for: *O Authenticating documentsO Reporting management fraud to the audit committeeO Finding all intentional misstatements concealed by collusionO Reporting all frauds to outside agencies or partiesO None of the above

Answered: Image /qna-images/answer/9523203d-b5a6-4ae9-adce-9defcfe2f451.jpg

Answered: External auditors are responsible for:…

Business

Accounting

External auditors are responsible for: O Authenticating documents O Reporting management fraud to the audit committee

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance

Section: Chapter Questions

Problem 15CYBK

See similar textbooks

Related questions

Q: Split Corporation manufactures products X, Y, and Z from a joint production process. Joint costs are…

A: The differential analysis is performed to compare the different alternatives available. The product…

Q: Journalizing Transactions in Template, Journal Entry Form, and T-Accounts Minute Maid, a firm…

A: Financial statements are those statements which are prepared at the end of accounting period.…

Q: Mama's Favorite Appliances manufactures two products: Food Processors and Espresso Machines. The…

A: Contribution margin is excess of sales revenue over variable costs in the business. Variable costs…

Q: A company has two service departments (S1 and S2) and two manufacturing divisions (MI and M2). The…

A: The allocation of cost of service departments to the operational department is an important task to…

Q: Kohler Corporation reports the following components of stockholders' equity at December 31, 2019.…

A: The treasury stock includes the own shares of the company repurchased from the shareholders. The…

Q: Bushman, Inc., issues $250,000 of 9% bonds that pay interest semiannually and mature in 10 years.…

A: A bond is a kind of debt security issued by the government and private companies for raising funds…

Q: Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and…

A: Contribution margin takes into consideration only variable expense while net income takes into…

Q: QUESTION 9 $100,000. 2020 Net credit sales Estimate of doubtful debts Allowance account credit…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: 1, 20x1 under each of the following methods: b. Provide the adjusting entries on December 31, 20x1…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Use the following account balances from the adjusted trial balance of Gees Catering: Account Debit…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: P1-5 Using Financial Reports: Applying the Accounting Equation to Liquidate a Company LO1-1 On June…

A: When a company liquidates it sells the assets and pays the liabilities. The company first pays the…

Q: Exercise 4-6A (Algo) Allocating overhead costs among products LO 4-3 Rooney Company makes three…

A: Allocation rate :— It is the rate used to allocate manufacturing overhead to cost object. It is…

Q: [The following information applies to the questions displayed below. Pumpworks Inc. and Seaworthy…

A: A company’s balance sheet contains the stockholders’ equity section to provide information on the…

Q: Decentralization is defined as a system in which the authority for decision making is delegated to…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: PB 1. LO 2.1 The following information is taken from the records of Rosebloom Flowers for the year…

A: Answer PB 1In order to determine the net income/losses, all the expenses incurred by the entities…

Q: Accounting

A: The rate of return reveals how effective an investment is in generating profits or returns for the…

Q: (a) Reproduce the Retained Earnings account (T-account) for 2010. (b) Prepare a retained earnings…

A: Particulars Amount Amount Shareholders equity & Liabilities shareholders’ equity…

Q: PART 3: Prepare the Unadjusted Trial Balance Prepare the Unadjusted Trial Balance for Smart Touch…

A: Trial Balance :— It is the statement that shows list of debit and credit balances of all assets,…

Q: Account Name Debit Credit Sales 750,000 Sales Returns and Allowances 15,000 Sales Discounts 10,000…

A: Lets understand the basics. Profit means a all the income less all the expense during the period.…

Q: Q- 2: Salado Company has a standard cost system in which it applies overhead to products based on…

A: Variance refers to the difference between actual results and the budget or standard.

Q: Vulcan Company is a monthly depositor whose tax liability for March 20- is $2,505. 1. What is the…

A: As per IRC 6656, if penalties are not deposited in a timely manner or the deposits are made for less…

Q: If you would have to pay $5,000 in taxes on $50,000 taxable income and $8,000 in taxes on $60,000…

A: The tax on a taxable income is computed based on a tax rate. Generally, the tax rate is not same for…

Q: Matthew Skateboards is considering building a new plant. Bob Skerritt, the company's marketing…

A: The net present value (NPV) is computed by deducting the total present value of all cash outflows…

Q: Calculate equivalent units of transferred-in costs, direct materials, and conversion costs.

A: Assumption - Since no information is given regarding which method has to be followed , we are…

Q: Vince Lupino works for Best Supplies Company, which pays its employees time and a half for all hours…

A: In order to maintain track of commercial transactions, the firm entities record them in the journal.…

Q: Brief Exercise 4-02 The ledger of Sandhill Company includes the following unadjusted balances:…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: enter O for the amounts.) Date v Account Titles and Explanation 4 Debit Credit

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to…

A: FICA (Federal Insurance Contributions Act) taxes are social security and Medicare taxes that both…

Q: what is an example of a derivative used in accounting? Please include a formula and perhaps an…

A: One example of a derivative used in accounting is the calculation of the net present value (NPV).…

Q: QUESTION 6 A company had the following purchases during its first year of operations: Purchases…

A: Introduction:- a) Calculation of weighted average cost per unit as follows:- weighted average cost…

Q: On January 31, 20X1, the general ledger of Johnson Company showed the following account balances.…

A: Adjusted trial balance is the statement which is prepared by the entity to summarize the adjusted…

Q: The following is information for Monty Corp. for the year ended December 31, 2023: Sales revenue…

A: Operating income is the difference between total revenue and total operating expense of the…

Q: The probability that, in the absence of internal controls, material errors or frauds could enter the…

A: Inherent risk : As the name suggests, it is the risk which is inherent in the omission or…

Q: OBJ. 2 PR 3-1A Adjusting entries On July 31, 2014, the following data were accumulated to assist the…

A: Lets understand the basics. Adjusting journal entry is required to make to record correct amount of…

Q: four inventory methods (LU6-3, 6-4, 6-5) George Bicycle Shop has the following transactions related…

A: As you have asked multiple sub-parts we can solve only first three sub-part for you please repost…

Q: Assume that a company has two cost drivers-number of courses and number of students. The planned…

A: ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring…

Q: Year 1 2 3 4 5 6 7 8 9 10 Present Value of $1 at Compound Interest 6% 10% 0.943 0.890 0.840 0.792…

A: NET PRESENT VALUE Net Present Value is one of the Important Capital Budgeting Technique. Net…

Q: The following transactions occurred during December, the first month of operations for Johnson,…

A: Basic accounting equation is Total Assets = Total liabilities + Stock holders equity

Q: Instructions On January 1, the first day of the fiscal year, Shiller Company borrowed $79,000 by…

A: Notes Payable - Notes Payable is amount owed by the company. Which is repayable at fixed period and…

Question

Master accounting

External auditors are responsible for: *
O Authenticating documents
O Reporting management fraud to the audit committee
O Finding all intentional misstatements concealed by collusion
O Reporting all frauds to outside agencies or parties
O None of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following would a fraudster perceive as a pressure? A. lack of management oversight B. everyone does it C. living beyond ones means D. lack of an internal audit function
Frauds are often detected through the receipt of an anonymous tip, by management review, by internal audit, by external audit, by any employee, or by accident. -True or false
ased on an assessment of audit risk, the auditors are concerned with the following two risks: The risk that that the client might be making duplicate payments to vendors. The risk that the client’s accounting clerk might be making unauthorized payments to himself. Required: a. Assuming that the client has a manual accounting system, describe how the auditors can design a test to identify the duplicate payments and unauthorized payments. b. Assuming that the client has an IT accounting system, describe how the auditors might use data analytic software to design a test to identify the duplicate payments and the unauthorized payments. b. Assuming that the client has an IT accounting system, describe how the auditors might use data analytic software to design a test to identify the duplicate payments and the unauthorized payments.
Why do fraud examiners handle information in a different manner than auditors? Why is thisimportant?
The risk of not detecting a misstatement resulting from fraud is greater than that resulting from error because Group of answer choices It is the responsibility of the management to detect fraud and the auditor’s responsibility is confined only to the detection of material errors The auditor designs procedures that only detect material misstatements from error Fraud involves acts designed to conceal it, such as collusion, forgery, or deliberate failure to record transactions. The professional standards do not require the auditor to discover information that is indicative of fraud
Master
Which of the following statements is correct with regards to the auditor's responsibility concerning fraud? a.Fraud detection is the objective of an audit. b.It is the auditor's responsibility to prevent fraud. c.The auditor is responsible for obtaining reasonable assurance that the financial statements are free from material statement, whether caused by fraud or error. d.When fraud is discovered by the auditor they must withdraw from the engagement.
Which of the following statements reflects an auditor’s responsibility for detectingfraud?(1) An auditor is responsible for detecting employee errors and simple fraud, butnot for discovering fraudulent acts involving employee collusion or managementoverride.(2) An auditor should plan the audit to detect fraud caused by departures from GAAP.(3) An auditor is not responsible for detecting fraud unless the application of auditingstandards would result in such detection.(4) An auditor should design the audit to provide reasonable assurance of detectingerrors and fraud that are material to the financial statements.
Based on an assessment of audit risk, the auditors are concerned with the following two risks: The risk that that the client might be making duplicate payments to vendors. The risk that the client’s accounting clerk might be making unauthorized payments to himself. Required: a. Assuming that the client has a manual accounting system, describe how the auditors can design a test to identify the duplicate payments and unauthorized payments. b. Assuming that the client has an IT accounting system, describe how the auditors might use data analytic software to design a test to identify the duplicate payments and the unauthorized payments. c. Describe the advantages of using data analytics software to identify unusual transactions or entries.
Which of the following statements describes why a properly designed and executedaudit may not detect a material misstatement in the financial statements resultingfrom fraud?(1) Audit procedures that are effective for detecting unintentional misstatements maybe ineffective for an intentional misstatement that is concealed through collusion.(2) An audit is designed to provide reasonable assurance of detecting materialerrors, but there is no similar responsibility concerning fraud.(3) The factors considered in assessing control risk indicated an increased risk ofintentional misstatements, but only a low risk of unintentional misstatements.(4) The auditor did not consider factors influencing audit risk for account balancesthat have effects pervasive to the financial statements taken as a whole
What are the goals of a fraud audit for internal auditors? Explain briefly.
The auditor’s primary consideration is whether, and how, internal control prevents, or detects and corrects: Material misstatement of the entity’s financial statements Financial statement fraud Incentives that prompt an employee to behave improperly illegal actions of the Management