Management of an entitysometimes makes estimateswhere the actual amounts arenot available. The role ofauditor with respect to suchmanagement's estimates isto:a. accept themanagement'sestimationO b. reject themanagement'sestimationO c. evaluate themanagement'sjudgmentd. withdraw from the audit Identify, which one of thefollowing is not, considered asnon-compliance by acompany?a. Violation of tax laws bya director on hispersonal income taxb. Omission of an item ofexpenditure of thecompany that ismaterialO c. An accounting policy ofthe firm contrary to theregulationsO d. Using a depreciationmethod that notprovided by thereporting framework.

Audit procedures to obtain audit evidence can include inspection, observation, confirmation,…

Management of an entity sometimes makes estimates where the actual amounts are not available. The role of auditor with respect to such management's estimates is to: O a. accept the management's estimation O b. reject the management's estimation c evaluate the

Management of an entity sometimes makes estimates where the actual amounts are not available. The role of auditor with respect to such management's estimates is to: O a. accept the management's estimation O b. reject the management's estimation c evaluate the

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

Chapter6: Audit Evidence

Section: Chapter Questions

Problem 13CYBK

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Question

Management of an entity
sometimes makes estimates
where the actual amounts are
not available. The role of
auditor with respect to such
management's estimates is
to:
a. accept the
management's
estimation
O b. reject the
management's
estimation
O c. evaluate the
management's
judgment
d. withdraw from the audit

Identify, which one of the
following is not, considered as
non-compliance by a
company?
a. Violation of tax laws by
a director on his
personal income tax
b. Omission of an item of
expenditure of the
company that is
material
O c. An accounting policy of
the firm contrary to the
regulations
O d. Using a depreciation
method that not
provided by the
reporting framework.

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