PCAOB standards are used to conduct the audit for public companies. True False
Q: select a corporate scandal of your choice and accordiing to Professional Code of Conduct given by…
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Q: Which of the following is a reason that an entity may receive an audit? Select the best response and…
A: A listed Entity may receive audit requirement by any law or authority such type of audit is called…
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: a. Discuss in detail how Enron Scandal infiuenced the "true and fair view" concept in auditing.…
A: Auditing is a type of procedure and process in which auditors finds out whether the financial…
Q: “Audit committees do not prepare financial reports, nor do they conduct audits. But they have an…
A: It is true that audit committees are not directly involved in preparation of the financial reports…
Q: What is the auditor’s responsibility for obtaining anunderstanding of internal control? How does…
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Q: Why is the Auditing Standards Board’s set of management assertions important to auditors? Dothese…
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Q: Which of the following statements best describes auditors’ responsibility for detecting a client’s…
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Q: Which of the following services can be classified as an assurance service? O A. The auditor verifies…
A: Answer: option (A)
Q: Which of the following is not required by generally accepted auditing standards?a. Written…
A: Generally accepted auditing standards (GAAS): These are defined as the set of general principles and…
Q: Auditors are important because they are able to provide assurance of an organization's financial…
A: Self-review threats:- This threat may occur when a previous judgment needs to be re-evaluated by the…
Q: Which of the following statements is true of auditing?
A: Auditing is basically defined as the examination of the financial activities taken place and to…
Q: Who are the professional organizations who are in charge of fraud auditing? Birefly elucidates.
A: This question explains about the professional organization of fraud auditing
Q: The auditor should assess control risk for each relevant assertion by evaluating the evidence…
A: Relevant assertion: The assertion that shows the possibility of happening a material misstatement is…
Q: The SEC requires the MD&A report as well as the audit attestation on management’s assessment of…
A: MD&A report means management discussion and analysis report. The MD&A report forms a part of…
Q: The most reliable types of audit evidence the auditor can obtain are: a. Physical examination by…
A: Audit evidence: It can be defined as the information collected or obtained by an auditor during the…
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: How do the NOCLAR standards change the traditional practice of maintaining confidentiality of audit…
A: Auditing is defined as onsite validation activities such as: Inspection or investigation of…
Q: o obtain an independent audit and what is the purpose of the Audit Report?
A: Introduction to Independent audit : An independent audit is an audit that is conducted for the…
Q: Why do you think that inherent and control risk is responsible for the audited company(client) and…
A: Audit means checking, verifying and examining all the financial records and information to ensure…
Q: Distinguish management’s responsibility from the audit committee’s responsibility for designing and…
A: Anti-fraud programs and controls depict the actions taken by the management to prevent and mitigate…
Q: Having an audit performed on the company's financial statements BEST illustrates which of the…
A: An audit performed for ensuring the quality of financial information.
Q: Distinguish the auditor’s responsibility for testing controlsin an integrated audit of a public…
A: Test of controls is a procedure of audit that is used to test the effectiveness of the control of an…
Q: What other restrictions and requirements apply to auditors whenproviding nonaudit services to public…
A: Audit: Audit is the process of verification of the compliance of the financial statements.
Q: Which of the following statements is not a correct statement regarding audit evidence? Select one:…
A: Audit evidence Audit evidence can be defined as the evidence that a company obtains during the…
Q: what are business risks associated with an entity that an auditor should consider when performing an…
A: answer Business risks associated with an entity that an auditor should consider when performing an…
Q: When completing the audit of internal controls for a public company, AS 2201 requires auditors to…
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Q: Which of the following statement is not related to role of audit committee? Approve…
A: In order to ensure whether the financial statements are prepared as per the standard and the…
Q: Which of the following is true of the Audit Committee? O It is composed of a group of stockholders.…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : Audit…
Q: Which of the following is not a way by which the Sarbanes-Oxley Act attempts to ensure auditor…
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Q: Choose the correct.Which of the following is not a way by which the Sarbanes–Oxley Act attempts to…
A: The explanation for the given options:
Q: Compare and discuss the impact of the business environment on the internal audit risk assessment
A: The process of risk assessment helps in identifying and analyzing risks so that the objectives of…
Q: As an auditor of ABC Co, apply auditing principles and standards examine the expectation gaps in the…
A: Expectation gap in Auditing means if the company and its management has some expectation in the…
Q: A CPA should disclose confidential client information without the consent of the client to: Another…
A: Compliance with standards The rule provides that a member cannot disclose any confidential client…
Q: Under what circumstances are external auditors likely to beinvolved in operational auditing? Give…
A: Operational Audit: An operational audit refers to the review of any aspect of the operating…
Q: If the company is subject to PCAOB obligations involving notification of control shortcomings (AS…
A: Thi the company is subject to PCAOB obligations involving notification of control shortcomings (AS…
Q: Assess the economic significance and limitations of audit work to business and investor interests,…
A: Ans. Their are various significance of auditing in a business. Though it comes with few limitations…
Q: Critically evaluate whether the manner in whic
A: An audit is the examination of an organization's financial statements - as provided in its annual…
Q: The audit documentation are the connecting link between the client's accounting records, financial…
A: Auditing is reviewing the financial statement of the company and giving an opinion on whether the…
Q: Explain how SOX has affected audit firms.
A: Basically, SOX was enacted to build confidence in the financial markets and tried to eliminate…
Q: (2) ( > Which of the following audit procedures for obtaining audit evidence is correctly described?…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Audit committees have an essential role to play in ensuring the integrity and transparency of…
A: Answer: (d) Details of the procedures that the auditor intends to apply. The auditors should not be…
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- The external auditor of a company has certain requirements due to Sarbanes-Oxley. Which of the following best describes these requirements? A. The auditor is required to only report weaknesses in the internal control design of the company he or she is auditing. B. The auditor must issue an internal control report on the evaluation of internal controls overseen by the Public Company Accounting Oversight Board C. The auditor in charge can serve for a period of only two years. D. The Public Company Accounting Oversight Board reviews reports submitted by the auditors when no evaluations have been performed.Course: Auditing You are the audit partner of ‘Power Auditors’ and you are auditing your client ‘Freefall Incorporated’. After finishing all the tests on the client’s financial information you determine that there is a material misstatement in the accounts receivable account of your client. This misstatementhas also caused the sales revenue account to be materially misstated. You have notified the client about the misstatement but as of reporting date, client has not made any corrections. You also found misstatements in the fixed assets and accounts payable accounts, but they are not material as per your assessment. You found no other misstatements in the otheraccounts. In addition to this, you also notice that the client has a large amount of debt which will be due next year. As the business has suffered a loss this year and does not have enough cash low at the end of the year to pay the debt next year, the client will need to secure some form of refinancing next year. Without this…Which of the following statements would most likely appear in an auditor's engagement letter? a. Fees for our services are based on our regular per diem rates, plus travel and other out-of-pocket expenses. b. The auditor's preliminary assessment of the risk factors relating to misstatements arising from fraudulent financial reporting. c. A reminder that management is responsible for illegal acts committed by employees. d. After performing our preliminary analytical procedures, we will discuss with you the other procedures we consider necessary to complete the engagement. e. Required evidence is needed to issue a qualified opinion.
- You are the audit partner of ‘Power Auditors’ and you are auditing your client ‘FreefallIncorporated’.After finishing all the tests on the client’s financial information you determine that there is amaterial misstatement in the accounts receivable account of your client. This misstatementhas also caused the sales revenue account to be materially misstated. You have notified theclient about the misstatement but as of reporting date, client has not made any corrections.You also found misstatements in the fixed assets and accounts payable accounts, but theyare not material as per your assessment. You found no other misstatements in the otheraccounts.In addition to this, you also notice that the client has a large amount of debt which will bedue next year. As the business has suffered a loss this year and does not have enough cashflow at the end of the year to pay the debt next year, the client will need to secure someform of refinancing next year. Without this refinancing, there is a…Statutory auditor, during the regular audit, from incoming company A to draft letters that will be addressed to customers with a request that customers confirm by direct letter that they will send to the auditor the information stated in the letter to the door of the customers' account. , audited company A refused to compile and send them to its clients. In this case, what type of report will the regular auditor issue for the balance sheet audit?As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different dients. 1 2. No. Prepare the journal entries for each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation M I 1. Oriole Company is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 4,500 shares of its $20 par value common stock. The owners' asking price for the land was $134,000, and the fair value of the land was $118,000. 2 Sunland Company is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 19,000 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $271,000. The stock was selling at $11…
- Which of the following most likely would be included with the client’s confirmation letter, when an auditor decided to confirm customers’ account balances rather than individual invoices.? Select one: Question 28Answer a. A client-prepared letter reminding the customerthat a nonresponse will cause a second request tobe sent. b. An auditor-prepared letter explaining that a nonresponse may cause an inference that the accountbalance is correct. c. An auditor-prepared letter requesting the customer to supply missing and incorrect informationdirectly to the auditor. d. A client-prepared statement of account showingthe details of the customer’s account balance.Assessing the risk of fraud in a financial statementaudit is a difficult audit judgment. Auditing standards require the auditor to performseveral audit procedures to accumulate information to assess the risk of fraud. You arethe in-charge auditor responsible for planning the financial statement audit of Spencer,Inc. Two new staff auditors are assisting you with the initial audit planning and haveasked you the following questions.Briefly summarize your response to these staff auditor questions:a. What is the purpose of the audit team’s brainstorming session?b. Who should attend the brainstorming session and when should the session be held?c. What is the role of the two staff auditors in the brainstorming session?d. What is the auditor’s responsibility under auditing standards for detecting fraud?The PCAOB issues audit practice alerts to highlight new, emerging, or otherwise noteworthy circumstances. Revenue is the largest account in the financial statements for many companies, and many fraudulent financial reporting cases have involved the intentional overstatement of revenue. For these reasons, the audit of revenue is often a significant focus of PCAOB inspections. PCAOB Audit Staff Practice Alert No. 12, Matters Related to Auditing Revenue in an Audit of Financial Statements, provides guidance to auditors and also highlights several deficiencies in the audit of revenue as identified through inspections. Download the practice alert at www.pcaobus.org to answer the following questions: What are the deficiencies identified by the PCAOB related to the use of substantive analytical procedures in testing revenue? What sources of information does the PCAOB recommend auditors use to develop plausible expectations of revenue when performing substantive analytical procedures? What…
- Please answer with reason for all why the option is correct and why the other options are incorrect Which of the following matters would an auditor most likely ask client management to affirm in an audit representation letter? Communications with those charged with governance concerning weaknesses in internal control Plans to acquire or merge with other entities in the subsequent year The reasonableness of significant assumptions used in making accounting estimates Management's acknowledgment of its responsibility for the detection of employee fraudLawsuits against CPA firms are most likely to allege that the auditors were negligent in not detecting which of the following? (a) overstatement of liabilities and earnings, (b) understatement of assets and earnings, or overstatement of owners' equity. Explain the reasoning underlying your choice. Please also respond to one of your peers. Discussion Board Requirements: Discussion boards for the relevant auditing topics covered will be created online on Blackboard. (the undi ing inquoc: furthermore each student must respond to the professional analyses of atWhile performing an audit of a public company, the auditors discovered material illegal acts and resigned due to the client's refusal to disclose them. The auditors' reason for resignation should be disclosed through: Direct Communication The Securities & Item With Shareholders Exchange Committee A. B. C. D. Multiple Choice Yes No Yes No Option C Option D O Option B Option A Yes Yes No No