perform in auditing
Q: COMPANY A COMPANY B Controls are strong Controls are weak If an audit of any of these companies is…
A: What is meant by test controls? It is an audit procedure conducted to ensure the effectiveness of…
Q: When the client’s internal control are good, internal documents are more reliable than external True…
A: The question is related to true or false on Auditing.
Q: Which of the following activities should the internal audit function NOT be involved in? a.…
A: Lets understand the meaning of internal audit here. Internal audit is a auditing design for the…
Q: Auditing} 10. Choose the circumstances in which financial statements are not true and fair. a. When…
A: An auditor is a person who is responsible for auditing the financial statement of the company and…
Q: whether there is a reasonable possibility that the company's internal control system will fail to…
A: Internal control is the managements’ effective and efficient controls for achieving goals and…
Q: t kind of report must an auditor submit
A: Persuasive audit evidence enables the auditor to express audit opinion without confusions.
Q: high for all financial statements assertions, an auditor should document the auditor’s A B…
A: An Auditor understanding of its environment, it's entity and then assessing the risk of material in…
Q: n auditor does not need to test the effectiveness of automated controls in a computerized system.…
A: Auditors are responsible are maintaining the account and checking accounts and checking accuracy of…
Q: The risk that a client's financial statements are susceptible to material misstatements is a.…
A: SOLUTION- INHERENT RISK IS THE RISK POSED BY AN ERROR OR OMISSION IN A FINANCIAL STATEMENT DUE TO A…
Q: Which of the following statements best describes auditors’ responsibility for detecting a client’s…
A:
Q: 23 Choose the circumstances in which financial statements are not true and fair. a. When the…
A: The circumstances in which financial statements are not true and fair when the financial statements…
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: Which of the following statements would most likely appear in an auditor's engagement letter? a.
A: Audit report represents the report prepared by an auditor that shows the opinion of the auditor on…
Q: The auditor only obtains understanding of internal control related to significant risks identified…
A: Internal control process is related with effective and efficient use of available resources and it…
Q: The acceptable audit risk for the financial statements overall tends to be low and is set by the…
A: In auditing, setting the acceptable audit risk for financial statements is crucial for ensuring the…
Q: The following questions deal with assessing controlrisk in a financial statement audit. Choose the…
A: Internal controls can be defined as the procedures to be followed in order to ensure the accounting…
Q: Detection risk is the risk that O a client's system of internal controls will not prevent or detect…
A: Auditing means the independent checking of company operation by outsider. Auditor is qualified and…
Q: If an auditor believes that a misstatement might be intentional and the effect on the financial…
A: c) If the auditors prepare the procedure and if check whether the fraud have taken place or going to…
Q: Where the auditor has assessed the risk of material misstatement of trade creditors as low, the…
A: Auditing is a procedure under which an auditor is appointed to check the accuracy of the financial…
Q: In which of the following circumstances would an auditor expect to find that an entity had…
A: Definition: Audit: Audit is the process of verification of the compliance of the financial…
Q: : When client-imposed restrictions significantly limit the scope of the audit, the auditor generally…
A: Solution: True, When client-imposed restrictions significantly limit the scope of the audit, the…
Q: f the auditor obtains sufficient evidence on a client's accounts receivable balance through…
A: EOM paragraph provide by the auditor when he wants to explain some audit procedures or matter that…
Q: Which of these statements is/are correct? | If an auditor had the required knowledge and…
A: Audit means checking of financial statements of a company.
Q: Analytical procedures used when planning an audit should concentrate ona. Weaknesses in the…
A: Analytical procedures are used by the auditors to analyze the accounts and transactions of the…
Q: An auditor's engagement letter most likely would include a statement regardıng: 1. Conditions under…
A: Auditing involves an independent examination of financial records of an entity with a view to…
Q: An independent auditor has the responsibility to design the audit to providereasonable assurance of…
A: The independent auditor’s plays a vital role regarding the internal controls of a public company.…
Q: In a financial statement audit, inherent risk represents a. The risk that misstatements could occur…
A: In financial and managerial accounting, Inherent risk is that the risk expose by a slip-up or…
Q: a) Explain why auditors’ reports are important to users of financial statements and why it is…
A: Auditing means an examination of the financial statements of the company and ensuring that…
Q: 1. What is the implications of management refusal to sign management representation letter.
A: If management refuses to sign the representation letter, it means that they are not willing to stand…
Q: Internal auditors may not perform: a. Audits of financial statements resulting in reports intended…
A: Lets understand the meaning of internal auditors. As the name suggest internal auditor is a person…
Q: Auditing The external auditor may seek to place reliance/TRUSTON internal controls in order to…
A: Internal auditors are employees of the entity, which might result in risks to independence (real or…
Q: It refers to the risks that a material misstatement will even occur, that it would not be prevented…
A: Note: As per our guidelines, we will solve the first question. The risk created by a financial…
Q: True/False 1. A confirmation is considered documentary evidence secured from outside the…
A: Auditing is a process that is undertaken by an auditor to ensure the accuracy in the organization's…
Q: 8. Explain about the type of report the Auditor would issue END of the EXAM a. if he disagrees with…
A: Auditor modifies his opinion in the auditors report when: 1) The auditor concludes that, based on…
Q: Question 30 If the auditor plans to assess control risk at less than the maximum and rely on…
A: Introduction:- The auditor intends to evaluate audit risks at a reduced level than highest and…
Q: audit program is completed during the planning phase of the audit
A: Statement 1 is false because not only in the first-time audits, but also in every audits, the audit…
Determine whether statement 1 and 2 are true or false
4. S1 - Generally, the more reliable internal controls are, the lesser the substantive test procedures the auditor would need to perform in auditing year-end account balances
S2 - The industry in which the client operates may give rise to specific risks of material misstatements arising from the nature of the business or the degree of regulation
a. False, False
b. True, False
c. False, True
d. True, True
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- 1. The use of computer systems in financial reporting increases the risk of material misstatements. true or false 2. Automated controls in a computerized system are always more reliable than manual controls. true or false 3. Which of the following is NOT a requirement for an auditor to maintain independence? a. The auditor must not be related to any employees of the company being audited b. The auditor must not have any financial interest in the company being audited c. The auditor must not have any business relationships with the company being audited d. The auditor must have a significant financial stake in the company being audited 4. Which of the following is NOT a type of computer system control? a.Input controls b.Processing controls c.Output controls d.Feedback controlsQuestion 25 When performing an audit of a public company, PCAOB standards do not require the auditor to perform test on internal controls if going straight to substantive audit procedures are more cost effective and provide will sufficient evidence to express an opinion on the financial statements taken as a whole. True Falses1: Client's representations, both written or oral, are not considered to be a persuasive type of evidence that the auditor obtains. s2: To substantiate the information provided by management about litigation, claims, and assessments, the auditor should ask the client to send letters of audit inquiries to its lawyers. a. BOTH STATEMENTS ARE TRUE b. BOTH STATEMENTS ARE FALSE c. ONLY S1 IS TRUE d. ONLY S2 IS TRUE
- The audit risk model includes the four risks listed below. Match the type of risk with the related definition.A. Detection riskB. Control riskC. Inherent riskD. Audit risk___ 1. The probability that an auditor will give an inappropriate opinion on financial statements.___ 2. The probability that audit procedures will fail to produce evidence of material misstatements.___ 3. The probability that the client's internal control policies and procedures will fail to detect material misstatements if they have entered the accounting system.___ 4. The probability that material misstatements have occurred in transactions entering the accounting system.estion 17 For audit evidence to be compelling to the auditor it must be sufficient and appropriate. Which statement below is not correct regarding the appropriateness of audit evidence? O A The more effective the internal control system, the more assurance it provides the auditor about the reliability of financial reporting by the client O B. The independent auditor's direct personal knowledge, obtained through inquiry, observation and inspection, is generally more persuasive than information obtained indirectly OC The timeliness of evidence is important as evidence is available only within certain time. OD None of the above.{Auditing} 8. One of the duties of an auditor is to prepare an audit plan for the smooth conduct of audit with due care and to detect fraud and errors. What other duty an auditor is expected to perform from options given below: a. Suggests changes in financial statements, if necessary b. Responsible to form opinion c. All the options d. To certify about the accuracy of financial statement
- Some auditors claim that increased exposure under creates a litigation environment that is unfairly risky for auditors. Do you think that the inability of auditors to detect a financial statement misstatement due to gross deficiencies in internal controls over financial reporting should expose auditors to litigation? Why or why not? Include reference to appropriate ethical standards in your response.19. An auditor conducting an audit in accordance with ______________is responsible for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error. a. ISAs b. None of the options c. IFRS d. IASWhich of the following characteristics is most likely to heighten an auditor’s concernabout the risk of material misstatements due to fraud in an entity’s financial statements?(1) The entity’s industry is experiencing declining customer demand.(2) Employees who handle cash receipts are not bonded.(3) Internal auditors have direct access to the board of directors and the entity’smanagement.(4) The board of directors is active in overseeing the entity’s financial reporting policies.
- Question 4 The auditor of a large public company has determined that a material weakness exists in the client's internal controls over financial reporting. Which of the following statements is true? Weakness require an adverse opinion on the financial statements taken as a whole. The auditor should express an adverse opinion on internal controls only if a material misstatement was found in the financial statements. The auditor should express and adverse opinion on internal controls even though no material misstatements were found in the financial statements. The auditor is not required to express an opinion on internal controls.When completing the audit of internal controls for an issuer, the severity of an internal control deficiency depends ona. Whether there is a reasonable possibility that the company’s controls will fail to prevent or detect a misstatement of an account balance or disclosure.b. Whether a misstatement has actually occurred as a result of the deficiency.c. The magnitude of the potential misstatement resulting from the deficiency or the deficiencies.d. Both a and c are correct.e. All of the above are correct.Which of the following presumptions does NOT relate to the reliability of evidence? A. the more effective the internal control structure, the more assurance it provides about the accounting data and financial statements. B.an auditor's opinion, to be economically useful, is formed within reasonable time and based on evidence obtained at a reasonable cost. C. evidence obtained from independent sourcesoutside the entity is more persuasive than evidence secured solely within the entity. D. the independent auditor's direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly.
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