North, CPA, is planning an independent audit of the financial statements of General Company. In determining the nature, timing, and extent of the audit procedures, North is considering General’s internal audit function, which is staffed by Tyler.Required:a. In what ways can the internal auditor’s work be relevant to North, the independent auditor?b. What factors should North consider, and what inquiries should North make in deciding whether to use Tyler’s internal audit work?
Q: With whom should the auditor communicate whenever he or she determines that fraud may be present,…
A: Auditor is the person examining the financial statements and reports of an entity to check if the…
Q: Which of the following best describes the operational audit? Select one: a. It requires the constant…
A: Operational audit is the examination and verification of all the operations of the business…
Q: Auditors are required to communicate numerous issues to those charged with governance of the firm…
A: Auditor is appointed in the company to give an opinion on the financial statements. To form an…
Q: Mr. Salim has appointed as an auditor of Shinas Mart LLC. At the end of the audit, he maintains…
A: Audit Document: Audit document are the working papers of the auditor. Auditor is the owner of Audit…
Q: During financial statement audits, the auditors' consideration of their clients internal control is…
A: Financial Statement Audit - It is an examination of financial statement of and provide disclosures…
Q: While performing your audit of Williams Paper Company, you discover evidence that indicates that…
A: Going Concern: A going concern is a word used in accounting to describe a corporation that has the…
Q: In making a decision of whether to take on a new audit client, the auditor should perform all of the…
A: Acceptance decisions are critical since potential clients and/or contracts might jeopardize…
Q: Abueva, CPA is reviewing the draft audit engagement letter prepared by her staff. Excerpts of the…
A: Identify the errors in the draft engagement letter and also enumerate deficiency in the draft…
Q: Which of the following may not be the possible sources of obtaining information in respect of…
A: Preliminary engagement activities are those activities that are helpful in reducing the risk of…
Q: Assume that a CPA serves as an audit client’s business consultant and performs each of the following…
A:
Q: Can audit managers on the audit engagement team, who are also attorneys admitted to the statebar,…
A: Given: The product liability defects assist the defense of lawsuit against an audit client by the…
Q: The auditor has considerable responsibility for notifying users as to whether or not the statements…
A: Audit: It is the independent examination of books of accounts of the company with the motive to…
Q: A public accounting firm’s independence is not impaired when members of the auditengagement team…
A: Auditor’s Independence: Auditor's independence ensures that auditor conducts audit in a fair manner…
Q: Which of the following is NOT an important consideration for the auditor’s assessment of audit…
A: Audit committee is entrusted with the task of overseeing the reporting and disclosure requirements…
Q: When planning an audit, which of the following is not a factor that affects auditors’ decisions…
A: An auditor is a professional body appointed by firm or enterprise to examine books of accounts and…
Q: Comparing the Internal Auditors and External Auditors , which of the following is not true about…
A: Option C The Auditor is appointed by the management is incorrect statement since they are appointed…
Q: When an auditor-client conflict arises during an audit engagement, the client and/or the current…
A: Introduction : After being recruited to produce an impartial report on correct accounting treatment…
Q: What are the concepts of legal responsibility applicable to the accountant in his audit functions…
A: Legal Responsibility of Auditor: Every day, more and more people are becoming concerned about the…
Q: "Auditor should remain alert to the possibility that other audit procedures applied may bring…
A: Substantive tests includes the activities performed by auditor to detect material misstatements at…
Q: 1. Johnson & Johnson CPAs, is considering accepting an engagement to perform an audit for a new…
A: The on-site verification activity of a process or quality system, such as inspection or examination,…
Q: What are some specific transactions that an auditor would expect to be approved by the board of…
A:
Q: Which choice is the best example of an independent auditor? A. CPA who has a significant…
A: Independent auditor are certified public or Chartered Accountants who examine the financial…
Q: In making a decision whether to accept or reject an engagement, an auditor should consider…
A: Before getting engaged in audit, the auditor must ensure that certain vital parameters are fulfilled…
Q: After the audit report release date, auditors determine that an important auditing procedure was…
A: After the audit report release date, auditors determine that an important auditing procedure was…
Q: What examples can be explained as the type of technical training and proficiency auditors must have…
A: The auditor must have adequate technical training and proficiency to perform the audit. the…
Q: n assessing whether to accept a client for an audit engagement, an auditor should consider the:
A: The objective of the auditor is to accept an audit engagement for a new or existing audit client…
Q: Which statement is incorrect regarding the external auditor's consideration of the work of internal…
A: Following is the answer to the given question
Q: An audit engagement letter should normally include which of the following matters of agreement…
A: Engagement Letter: Engagement letter is a type of a contract that is prepared when a new client…
Q: state the type of audit opinion which should be expressed
A: Since you have asked questions but have not provided the remaining part of the question but…
Q: Which of the following aspects are required to be included in the basis for opinion section in the…
A: Auditor Opinion The foremost responsibility of an Auditor to his client to express the opinion…
Q: Anna Santos audited the information system of Flores Corporation. Upon her evidence collection, she…
A: Auditing: Auditing refers to an independent examination of financial information of any…
Q: The external auditor should fulfill several performance responsibilities in order to obtain…
A: Audit = Auidit is external examination of Books of Account to check whether the financial statements…
Q: Discuss how each of the following could affect independence of mind and independence in appearance,…
A:
Q: In making a decision whether to accept or reject an engagement, an auditor should consider…
A: An auditor should accept the audit engagement after checking certain preconditions and evaluation of…
Q: he auditor shall plan the audit so that in can be performed effectively. The auditor shall study…
A: solution: The auditor shall plan the audit so that in can be performed effectively. True Explanation…
Q: The evidence considered most appropriate by auditors is best described asa. Internal documents such…
A: Audit evidence: It can be defined as the information or data obtained by an auditor during the…
Q: Refer to the fundamental principles governing an audit. Under the responsibilities principle,…
A: Given information is: Under the responsibilities principle, auditors are required to exercise due…
Q: In applying a top-down, risk-based approach to an audit, should the auditor start with the ending…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: Which of the following is not a way by which the Sarbanes–Oxley Act attempts to ensure auditor…
A: Definition: Sarbanes Oxley Act (SOX): SOX is the act passed by the government to address the…
Q: What are key audit matters? How do these affect the format of the audit report?
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following statements about the auditor's responsibilities in public company audits is…
A: PCAOB is public companies accounting oversight board. The board oversees the auditing of public…
Q: a) What are key audit matters? How do these affect the format of the audit report?
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: In making client acceptance and continuance decisions, the auditor will perform various procedures…
A: ISA 210 Agreeing the terms of Audit Engagement: This Standard deals with the preconditions for…
Q: Which of the following statements is correct when obtaining an understanding about the client's…
A: After the acceptance of the engagement, auditor shall obtain following information.
Q: e auditor is governed by an audit framework as well as a regulatory environment that includes…
A: IT risks and controls must be evaluated from the top down. There are general controls and there are…
North, CPA, is planning an independent audit of the financial statements of General Company. In determining the nature, timing, and extent of the
Required:
a. In what ways can the internal auditor’s work be relevant to North, the independent auditor?
b. What factors should North consider, and what inquiries should North make in deciding whether to use Tyler’s internal audit work?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Khalid has appointed as an auditor of Gulf Trading Company. Which of the following is the general perception Khalid must keep in mind to increase the reliability of audit evidence? O a. Audit evidence obtained directly by an auditor O b. Audit evidence obtained from dependent sources outside the entity O C. Audit evidence obtained orally O d. Audit evidence obtained from managementJuan Dela Cruz has been asked to accept an engagement to audit a small financial institution. Juan Dela Cruz has not been previously audited a financial institution. Required: Describe the types of knowledge about the prospective client and its industry that Juan Dela Cruz must obtain to plan the engagement Explain how Juan Dela Cruz may obtain this knowledge Discuss how this knowledge of the client’s business and industry will help Juan Dela Cruz in planning and performing an audit in accordance with auditing standards.Assume that a CPA serves as an audit client’s business consultant and performs each of the following services for the client. Identify the threats to independence. Do you believe any safeguards can be employed to reduce the threat to an acceptable level? Explain.a. Advising on how to structure its business transactions to obtain specific accounting treatment under GAAP.b.Advising and directing the client in the accounting treatment that the client employed for numerous complex accounting, apart from its audit of the client’s financial statements.c. Selecting the audit client’s most senior accounting personnel by directly interviewing applicants for those positions.
- What are key audit matters? How do these affect the format of the audit report? b) Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart iswriting a report for his audit partner based on these results and will be attending a meetingtomorrow with the partner and representatives of the company to discuss them. The issue will bewhether the financial report should be amended, or additional notes included for thesesubsequent events.Many of the items are not material and Stewart will recommend that no action be taken withrespect to these. However, there are several items that Stewart believes are material and shouldbe discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August. (b) The share issue is to fund the purchase of a 60 per cent stake in another company. Thenegotiations are in the final stages and although the contract is not yet signed it will be signedby 15 August. (c) A writ was…a) What are key audit matters? How do these affect the format of the audit report? b) Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing a report for his audit partner based on these results and will be attending a meeting tomorrow with the partner and representatives of the company to discuss them. The issue will be whether the financial report should be amended, or additional notes included for these subsequent events.Many of the items are not material and Stewart will recommend that no action be taken with respect to these. However, there are several items that Stewart believes are material and should be discussed at the meeting. These are as follows.(i) The board is planning to issue shares in a private placement on 15 August. (ii) The share issue is to fund the purchase of a 60 per cent stake in another company. The negotiations are in the final stages and although the contract is not yet signed it will be signedby 15 August.(iii)…(a) What are the key audit matters? How do these affect the format of the audit report? b) Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart iswriting a report for his audit partner based on these results and will be attending a meetingtomorrow with the partner and representatives of the company to discuss them. The issue will bewhether the financial report should be amended, or additional notes included for thesesubsequent events.Many of the items are not material and Stewart will recommend that no action be taken withrespect to these. However, there are several items that Stewart believes are material and shouldbe discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August. (b) The share issue is to fund the purchase of a 60 percent stake in another company. Thenegotiations are in the final stages and although the contract is not yet signed it will be signedby 15 August. (c) A…
- Choose the correct.Which of the following is not a way by which the Sarbanes–Oxley Act attempts to ensure auditor independence from an audit client?a. The auditing firm must be appointed by the client’s audit committee.b. Audit fees must be approved by the Public Company Accounting Oversight Board.c. The audit committee must be composed of members of the client’s board of directors who are independent of the management.d. The external auditor cannot also perform financial information system design and implementation work.a)What are key audit matters? How do these affect the format of the audit report? B)Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart iswriting a report for his audit partner based on these results and will be attending a meetingtomorrow with the partner and representatives of the company to discuss them. The issue will bewhether the financial report should be amended, or additional notes included for thesesubsequent events.Many of the items are not material and Stewart will recommend that no action be taken withrespect to these. However, there are several items that Stewart believes are material and shouldbe discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August. (b) The share issue is to fund the purchase of a 60 per cent stake in another company. Thenegotiations are in the final stages and although the contract is not yet signed it will be signedby 15 August. (c) A writ was…In assessing whether to accept a client for an audit engagement, an auditor should consider the: Select one:a. Political consistency of the country. b. Auditor’s engagement risk.c. The social and cultural factors of society in which the business operates. d. None of the above.
- Written Representations. Hart, an assistant accountant with the firm of Better & Best, CPAs, is auditing the financial statements of Tech Consolidated Industries Inc. The firm’s audit plan calls for the preparation of written representations. Required:a. In an audit of financial statements, in what circumstances are auditors required to obtain written representations?b. What are the major categories of items covered by written representations?c. To whom should the representations be addressed and as of what date should they be dated?d. Who should sign the representations, and what would be the effect of a refusal to sign them?e. In what respects may auditors’ other responsibilities be relieved by obtaining written representations?In making client acceptance and continuance decisions, the auditor will perform various procedures in assessing the client. Which of these would most likely not be one of those procedures? a. obtain background checks on management to assess management integrity b. review regulatory filings and examination reports c. analyze client financial statements and compare to industry metrics d. submit management to a lie detector testThe auditor is required to prepare audit documentation sufficient to enable an experienced auditor, having no previous connection with the audit, to understand the _________________ in reaching conclusions on significant matters arising during the audit. Select one: a. Confirmation letters b. The interviews conducted with employees and management c. The total evidence gathered d. Significant professional judgements made