Question 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  False

Q: Auditors often use a client's historical experience and subsequent transactions to evaluate the…

A: "Since multiple questions are posted, we shall solve the first question for you. Please report the…

Q: A CPA audits the financial statements of an issuer. Which statement relating to CAMs is TRUE? a. If…

A: Critical Audit Matters which is also written as CAMs are the matters which arises from the audit and…

Q: e the following:     GAAP has been consistently applied to the financial statements presented.…

A: When something is explained explicitly, it signifies that its full meaning is made clear. Anyone…

Q: A qualified audit report (qualified opinion) would usually be issued when a client's financial…

A: Qualified Audit Report means an auditor have opinion that some accounting treatments need…

Q: If the auditors encounter a significant scope limitation in evaluating a public company’s internal…

A: Auditing means the inspection of financial accounts of the company to determine if the records are…

Q: Which one of the following opinion will be issued by the auditor, if the misstatement in the…

A: Types of Auditor's Opinion : There are the four types of Auditor's opinion    Disclaimer : If 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: When completing the audit of internal controls for a public company the PCAOB requires auditors to…

A: PCAOB (Public Company Accounting Oversight Board) - It is the non profit organization that regulates…

Q: t kind of report must an auditor submit

A: Persuasive audit evidence enables the auditor to express audit opinion without confusions.

Q: While performing your audit of Williams Paper Company, you discover evidence that indicates that…

A: Going Concern: A going concern is a word used in accounting to describe a corporation that has the…

Q: Suppose during a financial statement or ICFR audit that the auditors identify cybersecurity risks…

A: Cybersecurity risks have been a big worry for businesses in recent years since they can result in…

Q: Auditing} 28. Which one of the following options is the basis for opinion for an auditor? a. ISA ,…

A: An auditor is a person who is responsible for auditing the financial statements and providing an…

Q: If the company is subject to PCAOB obligations for communicating control shortcomings (AS 1305),…

A: SOLUTION-   COMMUNICATION ABOUT CONTROL SHORTCOMING- STANDARD O AUDITING OF 1305 DESCRIBES THE…

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: Which of the following statements best describes what is meant by the term appropriateness of audit…

A: Appropriateness is a criterion for how good audit evidence is, i.e. how relevant and reliable it is.…

Q: Simplified approaches for preparing pro forma statements assume that the firm’s past financial…

A: External auditors are businesses or people that are professionally trained and engaged in the job to…

Q: If the company is subject to PCAOB rules involving disclosure of control shortcomings (AS 1305),…

A: This question explains about internal control over financial reporting

Q: Because of the risk of managers acting in their own self-interest rather than the company's best…

A: Ans. While conducting audit, the auditor is required to follow certain code of conduct,such as…

Q: Sarbanes-Oxley [SOX] legislation, greatly restricts the types of nonaudit services that auditors may…

A: Non-audit services provided by the auditor to an audit customer, including its affiliates, are…

Q: not true about an audit report for an issuer

A: First option is wrong because the statement is true. The audit report of an issuer company describes…

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: of these two tasks is one of the major responsibilities of an auditor regarding the audited…

A: The Audit is said to be the process over there is an independent examination finance statement of…

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: n, which of the following should be included in the opinion paragraph?     The reasons the…

A: The Generally Accepted Accounting Principles (GAAP ) are a collection of accounting rules and…

Q: {Auditing} 16. A professional accountant should respect the confidentiality of information acquired…

A: Auditing refers to the independent checking of a company's operation by the outsider known as an…

Q: 4-What do you understand by confirmation in the context of audit procedure for obtaining audit…

A: Introduction:- Auditing may be defined as examination or inspection of books of accounts of any…

Q: Which of the following statements are not true about auditors responsibilities? a) The financial…

A: The responsibility for preparation and presentation of financial statements is the responsibility of…

Q: The auditors determined that the entity is suffering financial difficulty and its going concern…

A: Unmodified Opinion is given by the auditor when all the financial statements are presented fairly in…

Q: If the auditors encounter a significant scope limitation in evaluating a public company's internal…

A: If the auditors encounter a significant scope limitation in evaluating a public company's internal…

Q: In which of the following cases should an Unqualified Report with Explanatory Paragraph be issued?…

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

Q: Which of the following factor disregarded by auditor while conducting the audit of a company? a.…

A: The auditor would assess the factors of  1.Past experience and honesty of those charged with…

Q: Which of the following statements is true regarding assertions in the revenue cycle?     All five…

A: under normal audit risk conditions the occurrence assertion would be more relevant than the…

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: ned to afford a reasonable basis for the opinion regarding financial statements under audit.…

A: The auditor's responsibilities revolve around ensuring that financial statements are presented…

Q: Under which clause of ISA, the auditor's responsibilities relating to prevention and detection of…

A: Auditor is the person who is responsible for audit work. Audit means examination or review of books…

Q: {Auditing} 21. The scope of an audit is the determination of the range of the activities and the…

A: The term "audit" refers to the process of determining the information's trustworthiness and…

Q: pplicability recognize

A: COSO model defines internal control --…

Q: Which of the following is not an implication of PCAOB Auditing Standard No. 5 and Section 404 of the…

A: It is a process implemented by organizations to provide reasonable assurance of achieving their…

Q: 13. A client decides not to correct misstatements communicated by the auditor that collectively are…

A: Financial Statement:— It is the statement that presents the financial performance of a company. It…

Q: Modified wording is added in the audit report when *

A: Introduction When the audit of particular concern or organization is completed then auditor may give…

Q: 36 Which one of the following options is the basis for opinion for an auditor? a. Only Sufficient…

A: Auditing means the independent checking of the company's operation by an outsider person known as an…

Q: When completing the audit of internal controls for a public company, AS 2201 requires auditors to…

A: Internal Control: Internal control is a mechanism or procedure that the company implements so that…

Q: As Review of Financial Statements under SSARS is not considered an audit engagement the accountant…

A: The review of financial statements can be defined as the conclusion provided by the accountant based…