Q11 Which of the following best describes the reason why independent auditors report on financial statements?   a. management fraud may exist and it is more likely to be detected by independent auditors. b. Different interests may exist between the company preparing the statements and the persons using the statements. c. A misstatement of account balances may exist and is generally corrected as the result of the independent auditors' work. d. Poorly designed internal control may be in existence.

Q: Distinguish between fraudulent financial reporting and misappropriation of assets. Discuss the…

A: Fraudulent financial reporting generally occurs when there is some international misrepresentation…

Q: What is the primary difference between fraud and error infinancial statement reporting?a. The…

A: Financial statements are those statements which are prepared at the end of the period for the review…

Q: Because all fraud involves some form of financial misstatement, how is fraudulent statement fraud…

A:

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: 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: financial statement fraud with asset misappropriation

A: Financial statement fraud is a deliberate attempt to conceal actual financial information so as to…

Q: Which of the following fraudulent activities most likely could be perpetrated due to the lack of…

A: The auditor Is responsible for forming an opinion on the financial statement and the main reason for…

Q: Which of the following are indicators of a high-risk or low-risk profile client? Explain? Poor…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: When it comes to control systems and materiality, why could fraud examiners' views vary from those…

A: Misstatements and judgments are taken into account when determining materiality in the design and…

Q: Which one of the following is not an advantage of internal controls? Select one: a. It safeguards…

A: Internal control is an auditing and accounting tool that ensures operational efficiency and…

Q: When it comes to control systems and materiality, why may fraud examiners' perspectives be different…

A: Auditor : He is a firm employee tasked with conducting an audit, verifying all of the company's…

Q: The risk of a material misstatement in the financial statements arising due to error or omission as…

A: Error or Omission is an unintentional mistake which leads to risk of material misstatement in the…

Q: With respect to fraudulent financial reporting, which one of the following statements is not…

A: Auditor can obtain reasonable assurance only, not an absolute assurance.

Q: What role does the rationalization phase play in the process of financial statement fraud? A)…

A: Financial statement fraud refers to the deliberate manipulation, misrepresentation, or alteration of…

Q: Which sentence below is true about audit risk:  A. Audit risk is the risk that a company may hire…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

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: 3. Which of the following is NOT part of the control activities applicable to Financial Statement…

A: Solution Concept Financial statement audit                 During the audit of the financial…

Q: What is the primary difference between fraud and errors in financial statement reporting

A:

Q: How can fraud be detected in the financial statements?

A: Financial statements are a summary of the transaction involved in the business activities which…

Q: What is the ethical value of applying the Fraud Triangle to assess the risk of material…

A: Fraud Triangle:   A fraud triangle refers to a framework that is used in auditing to explain the…

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: Which of the following factors creates an opportunity for fraud to be committed in an organization?

A: Corporate fraud consists of illegal, deceptive actions committed either by a company or an…

Q: What fraud detection responsibilities (if any) does SOX impose on auditors?

A: Definition: Sarbanes Oxley Act: In order to protect the rights of an investor from fraudulent…

Q: Which of the following controls can minimize the threat of inaccurate financial statements? Backup…

A: Financial statements are formal records that present the financial activities and position of a…

Q: 35. S1. Internal audit does not have responsibility for the prevention or detection of fraud and…

A: Auditing is the detailed process of checking and verifying all financial statements and books of…

Q: The following are examples of circumstances that may indicate the possibility that the financial…

A: Audit is the process of checking and verifying financial statements of the business so that it can…

Q: When completing the audit of internal controls for an issuer, the severity of an internal control…

A: Internal control is the managements’ effective and efficient controls for achieving goals and…

Q: Why is a system of internal control not able  to overcome collusion by employees?

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Which of the following is not an underlying principle related to risk assessment? OA. The…

A: An auditor is referred to a professional who is responsible to verify the financial statements of a…

Q: Which of the following actions did the Treadway Commission recommend to reduce fraudulent financial…

A: Option (a) It recommends creating an organizational environment that helps the integrity of the…

Q: primary difference between fraud and error in financial reporting

A: