Answered: One of your audit planning procedures…

One of your audit planning procedures was the ratio analysis. You noted that the debt to assets ratio of your client is 0.3. Is that good

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Explain why the acid-test ratio is a better measure of financial health than the current ratio.
If the group engagement partner decides that the component auditor cannot access sufficient appropriate audit evidence regarding the component of the financial statements audited, what type of modified opinion will they consider issuing? O modified opinion due to GAAP departure O modified opinion due to scope limitation O adverse opinion O modified opinion due to GAAS departure
explain your answer and why other options are not correct also explain
When auditing accounts receivables, auditors are usually especially concerned about the: a. Completeness and cut-off objectives. b. Existence and completeness objectives. c. Existence, realisable-value and accuracy objectives. d. Posting and summarisation objective.
An auditor is performing analytical procedure that involves developing common-size financial statements. This technique is referred as: Vertical analysis, Horizontal analysis, Cross-sectional analysis, or Comparison analysis
Analytical procedures consist of evaluations of financial informationmade by a study of plausible relationships among both financial and nonfinancial data.They range from simple comparisons to the use of complex models involving manyrelationships and elements of data. They involve comparisons of recorded amounts, orratios developed from recorded amounts, to expectations developed by the auditors.a. Describe the broad purposes of analytical procedures.b. When are analytical procedures required during an audit? Explain why auditors useanalytical procedures extensively in all parts of the audit.c. Describe the factors that influence the extent to which an auditor will use the resultsof analytical procedures to reduce detailed tests in meeting audit objectives.*
When applying analytical procedures during an audit, which of the following is the best approach for developing expectations? Multiple Choice Considering the pattern of several unusual changes without trying to explain what caused them. Considering unaudited account balances and ratios to calculate what adjusted balances should be. Comparing client data with client determined expected results to reduce detailed tests of account balances. Comparing current year account balances to balances of one or more comparable periods.
In developing relationships among balance sheet accounts when reviewing the financial statements of anentity, what type of analytical procedure would an auditor most likely use? Select one: a. Ratio analysis. b. Trend analysis. c. Risk analysis. d. Regression analysis.
Identify at least two different ratios from the standpoint of an investor or creditor in determining the financial health of an organization. Describe how the measure is calculated and the reason for selecting the two ratios that you chose.
question 3 (this is a auditing question) Which of the following services is appropriate for an independent examination of a cashflow forecast? Group of answer choices a) Both are appropriate. b) A review c) An external audit d) Neither service is appropriate
An auditor is reviewing transactions in an expense account. The dollar amounts are 118, 140, 133, 167, 171, 158, and 145. Construct a 90% confidence interval for the average transaction amount.
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