materiality

Q: Which of the following BEST (select one) describes why auditors must maintain independence? a) The…

A: Auditor independence means that the auditor should be free from any kind of obligation towards the…

Q: What should an auditor do if they discover they have forgotten to perform a substantive procedure?

A: Audit Procedure: A specific procedure undertaken by an auditor to procedure evidence in a particular…

Q: A consideration of internal control made during an audit is usually not sufficient to express an…

A: Internal controls procedures are those processes which are established for effective and efficient…

Q: In which one of the following circumstances is the improper description of accounting policies and…

A: A error or misstatement in a financial statement is said to be material if it can affect the…

Q: An adverse opinion is most likely to be included in an audit report when   Multiple Choice   A…

A: There are 4 types of audit opinions.  1.unqualified  2.Qualified 3.Disclaimer 4.Adverse opinion

Q: Is it necessary for an auditor to get a knowledge of a client's internal controls if the auditor…

A: An auditor is required to express an opinion on the true and fair view of the state of affairs and…

Q: Why might adverse opinions on internal control over financial reporting prompt Daily Journal to…

A:

Q: What will the auditor do in respect of misstatement which in his opinion are immaterial? a. Give…

A: Unmodified Opinion is issued when there are no material misstatements.

Q: Describe a situation that would require an auditor to give an unmodified opinion without a standard…

A: Introduction: Unmodified opinion generally gives when the financial statements showing as fairly. It…

Q: When the client is not permit the communication between the predecessor auditor and the successor…

A: Auditing means the independent checking of company operation by outsider.

Q: In both Japan and the United States, external auditors have frequently been accused of failing to…

A: Auditors, their firms and the profession as a whole can take a number of measures to strengthen…

Q: Which statement is false

A: Meaning of Internal control The process designed, implemented and maintained by those charge with…

Q: Why do auditors use the words "present fairly

A: Present Fairly Present fairly is a term used inside the text of an audit report back to indicate…

Q: Give some instances of the dangers to the independence of an external auditor in your explanation.

A: This question deals with the dangers to the independence of an external auditor in your explanation:…

Q: The FBI employs deception to collect information during its investigations. Do you believe it is…

A: In the context of auditing, deception refers to the use of false or misleading information or…

Q: What possible actions would an auditor might take if a client’s financial statements depart from…

A: Introduction: A set of financial statements summarizes a company's monetary results, financial…

Q: This is a process of evaluating the effectiveness of a client's internal controls in preventing or…

A: INTERNAL CONTROL IS A MECHANISM WHICH IS IMPLEMENTED TO ENSURE THE INTEGRITY OF FINANCIAL AND…

Q: A company's records for auditing have been destroyed. Would it be okay if the auditor asked the…

A: Auditing is the investigation, inspection, or examination of the financial statements of an…

Q: Why might an auditor issue a disclaimer of opinion after an audit? A. All of these may cause an…

A: Disclaimer of opinion: The disclaimer of opinion is the opinion given by the auditor on the…

Q: Which of the following is least likely to be a factor that might indicate to an auditor that an…

A: special considerations are used by auditors where there is a high risk of material misstatements in…

Q: Some criticize the accounting profession for using expressions in the audit report that seem to be…

A:

Q: When obtaining an understanding of an entity’s internal control, an auditor should concentrate on…

A: An entity's board of directors, management, and other people are the ones who carry out the process…

Q: External auditors cannot delegate responsibility for audit decisions to the internal auditors. *…

A: External auditors are not supposed to delegate authority to the internal auditors in respect of…

Q: Risk of incorrect acceptance is defined as _______.     the risk that the auditor concludes that a…

A: Risk of incorrect acceptance may be defined as situation where audit sample supports a conclusion…

Q: Why do you think auditors were not able to detect the fraud in their previous audit

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: materiality

A: The first statement is true because the transactions of personal capacity affect the business entity…

Q: Which of the following is NOT an example of externally generated evidence sent directly to the…

A: Audit evidence refers to data obtained by an auditor for arriving at his judgment while performing…

Q: What is meant by a “colorable claim”? Do you believe auditors should be liable for investor losses…

A: Legitimate claim of a person is known as Colorable claim. It can be asserted based on the current…

Q: When would an auditor prefer to conduct a black-box audit? What about a white-box audit?

A: A black box audit is a type of security audit in which the auditor examines a system or application…

Q: would you say that material mistakes found in a financial statement could lead to the auditors being…

A: A material mistake refers to that mistake in a financial statement of a company that may affect the…

Q: What is the upper limit on misstatements? What information does it provide the auditor?

A: A Misstatement is a statement having concealed facts or misleading information regarding the facts,…

Q: A CPA firm that provides audit services for a client generally cannot provide expert witness…

A: The auditor is prohibited from providing the following non-audit services to an audit client…

Q: Can the auditor obtain more audit evidence to compensate for the lack of perceived appropriateness…

A: The information that auditors rely on to back up their findings and judgements on the financial…

Q: The auditors who find that the client has committed an illegal act would be most likely to withdraw…

A: Auditors are the professionals who are involved in the scrutiny of the financial reports and…

Q: Something is deemed to be 'material' if its omission, non-disclosure or misstatement is likely to…

A: Financial statements are statements that are prepared at the end of the period in order to analyse…

Q: The attorney's refusal to reply to the audit inquiry is a scope limitation that may affect the audit…

A: Audit is the examination or verification of the financial information of any entity with a view to…

Q: Regarding auditor remuneration, a self-interest threat to professional competence and due care is…

A: The auditor would require to provide the service with his full competence and due care. But if he…

Q: Audit evidence obtained through inquiry of management about proper segregation of custodianship and…

A: Solution Reliability of audit evidence The reliability of audit evidence shall be considered based…

Q: re internal controls required even if an auditor doesn't plan to rely on them in his audit? Explain.

A: Auditor: He is a person appointed by the government who investigates the finances of a company. In…

Q: What do auditors consider when determining the extent to which the internal auditors’ work will…

A: Risk of Material Misstatement: Material misstatement risk is the possibility that an organization's…