In order for the auditor to perform the audit work, the accountant does not have to first prepare the financial statements needed.
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4
In order for the auditor to perform the audit work, the accountant does not have to first prepare the financial statements needed.
Question 4 options:
a) True | |
b) False |
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- I WitT DivaRara Reddy Narasarju for Sem III 202 General / BAAC4203 Auditing and Control-2 FINAL EXAM If the auditor concludes that financial statements are not free from material misstatements and the effect of material misstatements are not pervasive to the financial statements. Auditor shall express: Qualified opinion Adverse opinion Disclaimer of opinion Unmodified opinion The type of fraud involved in charging the items of capital expenditure to revenue or by capitalizing revenue expenses Auditin EN sWhich of the following are the auditor's responsibilities when it comes to the financial stațements? 1. Giving an opinion as to their truth and fairness. 1, 3 and 4 only 1, 2 and 3 only 1 and 2 only 2 and 3 Only 2. Selecting and applying accounting policies. 3. Gathering evidence to support the opinion given. 4. Planning and conducting the audit.estion 17 For audit evidence to be compelling to the auditor it must be sufficient and appropriate. Which statement below is not correct regarding the appropriateness of audit evidence? O A The more effective the internal control system, the more assurance it provides the auditor about the reliability of financial reporting by the client O B. The independent auditor's direct personal knowledge, obtained through inquiry, observation and inspection, is generally more persuasive than information obtained indirectly OC The timeliness of evidence is important as evidence is available only within certain time. OD None of the above.
- {Auditing} 8. One of the duties of an auditor is to prepare an audit plan for the smooth conduct of audit with due care and to detect fraud and errors. What other duty an auditor is expected to perform from options given below: a. Suggests changes in financial statements, if necessary b. Responsible to form opinion c. All the options d. To certify about the accuracy of financial statement1-From the options given below which of the document is included by an auditor in the audit documentation? a. Oral explanation by auditor b. Complete notes c. Superseded draft of financial statements d. Previous copies of documents rectified for mistakes{Auditing} 23. From the options given below, identify an opinion formed by an auditor when financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework. a. None of the options b. Unqualified opinion c. Negative opinion d. Qualified opinion
- Question 4 Respond to each of the following independent situations involving auditor reports. For each scenario (1)identify the reporting issue involved; (2) explain the type of opinion that should be issued; (3) identify any requiredmodifications of the standard auditor'sreport. The auditor has a disagreem ent with a client overthe adequacy of the recorded bad debt expense and allowance for doubtful accounts. The auditor is convinced that the expense and allowance are understatedby amaterial (but not highly material) amount, but the client has refused to adjust the accounts. 1.4 The auditor has issued a report on a client's financial statem ents prepared on a regulatory basis of accounting. The auditor is also preparing to issue a separate report- on the same client's GAAP financial statements, which will be issued to the public. The auditor feels that the issuance of the report on the regulatory basis statements should be disclosed in the report on the GAAP statements. The auditor…3. Does a qualified opinion on management’s assessment of internal controls over the financial reporting system necessitate a qualified opinion on the financial statements? Please explain within 150 words. (To answer this question, please make sure you understand the terms “unqualified opinion” and “qualified opinion” in auditing.{Auditing} 33. The auditor shall express ________opinion when he concludes that there are possibilities of material misstatements that are pervasive to the financial statements. a. Adverse b. Qualified c. None of the options d. Disclaimer
- Financial statement audits performed to provide which type(s) of assurance with respect to the detection of material misstatements due to errors or fraud? Reasonable Absolute (1) Yes Yes (2) Yes No (3) No Yes (4) No No Select one: a. (3) b. (4) c. (1) d. (2)3-Audit evidence obtained by an auditor which is sufficient and appropriate to support his opinion on the financial statement assertions. Appropriateness and sufficiency deals with a. Both appropriateness and sufficiency deal with quantity of audit evidence b. None of the options c. Both appropriateness and sufficiency deal with quality of audit evidence d. Appropriateness deals with quality and sufficiency deals with adequacy of audit evidence5