If an auditor assigns a tolerablemisstatement of $1,000 to accountspayable, he or she would need toobtain less audit evidence for thataccount than if $100,000 had beenassigned. *TrueO False

Both overstatements and understatements should be considered once allocating materiality to record…

Answered: If an auditor assigns a tole…

If an auditor assigns a tole misstatement of $1,000 to payable, he or she would r obtain less audit evidence account than if $100,000 assigned. True

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

Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates

Section: Chapter Questions

Problem 23RQSC

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If an auditor assigns a tolerable misstatement of $1,000 to accounts payable, he or she would need to obtain less audit evidence for that account than if $100,000 had been assigned. * True False TOSHIBA
PCAOB standards are used to conduct the audit for public companies. * True False If an auditor assigns a tolerable misstatement of $1,000 to accounts payable, he or she would need to obtain less audit evidence for that account than if $100,000 had been assigned. * True False An engagement letter establishes a clear understanding of the terms of the engagement between the client and the auditor. * True False
The auditor was unable to confirm from the Bills receivable amounted OMR 250,000 by communicating with the Sundry debtors or customers. What type of Audit opinion should be expressed by the auditor in this situation? Unmodified opinion Qualified opinion Disclaimer of opinion Adverse opinion Next page ments Jump to... Auditing and Cont EN
If the auditor concludes that there is a high likelihood of material misstatement in accounts receivable due to changing economic conditions, the auditor concludes that inherent risk for accounts receivab is low. Select one: OTrue O False e
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S1: The risk of material misstatement of the financial statements is generally lesser when account balances and classes of transactions include accounting estimates rather than essentially factual data. S2: "Unrestricted access to whatever record, documentation and other information requested in connection with the audit" is usually one of the items documented in an audit engagement letter. S3: Sufficiency of evidential matter refers to the quantity of the evidence gathered. A. Only 1 statement is True B. Only 2 statements are True C. All statements are True D. All statementS are False
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Part I: The following issues listed below were not discovered by your audit team member. Required: Identify the one assertion that BEST pertains to each undiscovered issue. Explain why the assertion you selected pertains to each issue. (1 sentence each). Issue, Assertion, and Explanation 1. The allowance for bad debt account (part of the net accounts receivable balance per the balance sheet) differs significantly from the audit team's estimated range. 2. An accounts receivable confirmation indicated that the customer did not have an account with the company 3. Service revenue recorded was never performed. 4. Checks from customers received in the mailroom were never recorded and deposited. 5. Some inventory in the warehouse appears to be obsolete. 6. Sales transactions made at the beginning of the following fiscal year were recorded and reported in the prior year income statement. 7. Confirmations indicated that there were liens and other restrictions on accounts receivable. 8. Cash…
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