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- 5. Which of these is the set of working papers that affect the current year and future audits? Select one:a. Permanent fileb. Current filec. Update filed. Carryover fileComprehensive Problems (covers all content) Problem 11: List the Summary of the Audit Process in correct phases (from beginning to end of audit): Perform analytical procedures and tests of details of balances Complete the audit and issue and audit report Plan and design an audit approach Perform tests of controls and substantive tests of transactions Phase 1 ______ Phase 2 ________ Phase 3 ________ Phase 4 ________ Give an example of each step.Refer to Exhibit 2.5 and answer the following questions. a. (Sections 101, 104, and 105) How does the establishment and operation of the PCAOB help to ensure quality external audits? How will audit firm inspections and investigations by the PCAOB help ensure high audit quality? b. (Sections 201-203) How do Sections 201-203 address audit ()r independence concerns? c. (Section 206) What is a cooling-off period, and how does it address auditor independence concerns? d. (Section 301) How do the audit committee requirements help ensure effective corporate governance? e. (Sections 302 and 906) How do the officer certification requirements help to address the risk of fraud in publicly traded organizations? What is the likelihood that a CFO who is committing fraudulent financial reporting would sign the certification falsely, and what are your reactions to that possibility? f. (Section 401) How does this section relate to the Enron fraud? g. (Section 404) How do the management assessment and audit or attestation of internal controls contained in this section help to address the risk of fraud in publicly traded organizations? h. (Section 407) Why is it important that at least one member of the audit committee be a financial expert? What are the financial reporting implications if the audit committee does not have any individuals serving on it who possess financial expertise? i. (Section 802) How does this section relate to the Enron fraud?
- Choose the documents which should be included in the audit documentation a. Summaries of significant matter O b. Issue memoranda O c. Audit program O d. All the optionsBased on PSA 120, which of the following are unrestricted reports to be issued by the auditor/accountant: I. Audit II. Examination III. Review IV. Agreed-Upon Procedures V. Compilation Group of answer choices: I, II, and IV I, II, III, IV and V I, II, III, and V I, II, III, and IV IV and V I, II and IIISelect which refer to Current audit file and Permanent audit file, using the working papers given below: Engagement letters Financial statements Account’s checklists Board minutes of continuing relevance New client questionnaire Management letter Audit planning memorandum Accounting systems notes
- literature review on how do auditor gather audit evidence during the period of covid 19a) ISA 300 Planning an Audit of Financial Statements provides guidance to auditors. Planning an audit involves establishing the overall audit strategy for the engagement and developing an audit plan. Adequate planning benefits the audit of financial statements in several ways. Required: i) Identify and explain the five stages in audit process ii) Discuss three importance of audit planning.Which of the following is correct about assembling the audit documentation in an audit file? O a. Assembling the final audit plan on a timely basis after the date of the financial year ended O b. Assembling the final audit program on annually basis before the date of the auditor's report O C. Assembling the final audit file on a timely basis after the date of the auditor's report O d. Assembling the final audit file on a quarterly basis before audit procedures performed
- 33 What is the proper sequence of the BIR assessment process? Actual/table audit Issuance of electronic Letter of Authority (e-LoA) Issuance of Final Decision on Disputed Assessment (FDDA) Issuance of Formal Letter of Demand/Final Assessment Notice (FLD/FAN) Issuance of Notice of Discrepancy (NIC) Issuance of Preliminary Assessment Notice (PAN) Group of answer choices a. 1, 2, 3, 4, 5, 6 b. 2, 1, 5, 6, 4, 3 c. 2, 1, 6, 4, 5, 3 d. 1, 2, 5, 6, 4, 3The auditor should summarize the overall audit strategy that contains the key decisions about the scope, timing, and conduct of a. Audit plan O b. Note. C ..Review working papers d. Audit memo bookA(n) ________ is the detailed instruction that explains the audit evidence to be obtained during the audit Select one: a. audit program b. audit procedure c. audit assertion d. audit objective