PRESENTATION AND DISCLOSURE-RELATED AUDIT OBJECTIVES DESCRIPTION 1. Occurrence and rights and obligations A. The note disclosures are accurate and their values are correct. B. The account balances are correctly classified and the related financial statement disclosures are easy 2. Completeness to understand. C. The information related to the accounts, as described in the note disclosures, do exist and represent the rights and obligations of the company. 3. Accuracy and valuation

PRESENTATION AND DISCLOSURE-RELATED AUDIT OBJECTIVES DESCRIPTION 1. Occurrence and rights and obligations A. The note disclosures are accurate and their values are correct. B. The account balances are correctly classified and the related financial statement disclosures are easy 2. Completeness to understand. C. The information related to the accounts, as described in the note disclosures, do exist and represent the rights and obligations of the company. 3. Accuracy and valuation

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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Which of the following is the primary responsibility of auditor? a. To ensure compliance with laws and regulations applicable on the entity b. To design, implement and maintain system of internal control. c. To ensure that financial statement comply with applicable financial reporting framework d. To express an opinion on true and fair view of the financial statements.
Management's assertions in the financial statements are of relevance to the audit process because a. they are the procedures that will be performed by the audit team. b. they are utilized by auditors in developing proper tests and procedures c. they are direct evidence that management has prepared financial statements in accordance with GAAS. d. they relate more to the audit while the financial statenent belong to the author.
Describe the purpose of a financial statement disclosure checklist and how it assists the auditor in determining if enough acceptable evidence exists to support each of the presentation and disclosure goals.
Assume that you are an auditor of a company. Explain any THREEcategories of assertions that you will be testing when auditing the financialstatements of the company. You are required to:(i.) Mention the name of the company you will be auditing along with the industryto which it belongs to. (ii.) List the category of assertions (3 assertions) along with the element ofa financial statement that will be checked. (iii.) Explain in detail the procedure adopted for collecting the audit evidence thatyou have mentioned in relation to question no. (ii.) with proper justification andtwo sample transactions.
4. An independent audit is important to readers of financial statements because it:a. determines the future stewardship of the management of the company whose financial statements are audited.b. measures and communicates financial and business data included in financial statements.c. involves the objective examination of and reporting on management‑ prepared statements.d. reports on the accuracy of all information in the financial statements.
Explain how a financial statement disclosure checklist aids the auditor in determining whether there is adequate relevant evidence for each of the presentation and disclosure goals.
Explain the main objectives of the audit of an entity’s financial statements and the importance of using standards when auditing financial statements.
PLEASE ANSWER THIS ASAP. THANK YOU SO MUCH. 1.Which of the following statements is incorrect? a. Management assertions are implied or expressed representations by management about classes of transactions, account balances and presentation and disclosures contained in the financial statements. b. Transaction cycles may vary from one entity to another and may also be affected by the nature of industry of the client. c. The primary goal of an auditor in an audit is to issue an opinion that the financial statements of an entity are fairly stated, in all material respects, in accordance with the applicable financial reporting framework. d. Reasonable assurance is moderate but not absolute level of assurance that the financial statements are free from material misstatements. 2. Which of the following statements does not pertain to responsibilities of management and those in charge of governance? a. Establish and implement internal controls relevant to the preparation of financial reports.…
In a financial statement audit, the auditor obtains a reasonable level of assurance about whether the financial statements are free of material misstatement in order to express an opinion. In order to obtain reasonable assurance, the auditor must have prior experience in the industry in which the audit client operates. examine all documents available that support the financial statements. obtain sufficient audit evidence. test controls around significant transaction cycles.
6. Explain the benefits which an external financial statement audit provides for an auditee.
In including an audit of financial statements , the overall objectives are the following, EXCEPT A. To conduct a critical, detailed and systematic examination of all the account balances in the financial statements, as the related document records , procedures and controls B. To obtain reasonable assurance whether financial statement as a whole are free from material misstatement whether du to fraud or error C. To report on the financial statements and communicate as required by the PSAs in accordance with the auditor’s findings D. To enable the auditor to express an opinion on whether the financial statements are prepared, in all material respects in accordance with the applicable financial reporting framework