Recommendations should be included in final audit communications to: Group of answer choices Ensure that problems are resolved in the manner suggested by the auditor Guarantee that audit observations are addressed, regardless of cost Provide management with options for addressing audit observations Minimize the amount of time required to correct audit observations

Recommendations should be included in final audit communications to: Group of answer choices Ensure that problems are resolved in the manner suggested by the auditor Guarantee that audit observations are addressed, regardless of cost Provide management with options for addressing audit observations Minimize the amount of time required to correct audit observations

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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Financial Audit Q&A Questions Answer Risks that may occur during assertion testing, but cannot be prevented due to the lack of time. Reports that need to be prepared to find out if there are significant changes in the client. The parties reported by the auditor are related to the results of the audit reports made. Terms that must be included in the document prepared by the client. Inspection activities to ensure the shipping or Destination Point in the recording of the financial statements is correct in accordance with the fragments. The auditor needs to know that the ending balance recorded in the financial statements is appropriate based on evidence of transactions in the company. The audit assertion underlying the vouching procedure. The audit assertion underlying the tracing procedure. The risk caused by the sample taken by the Auditor does not describe the characteristics of the data from the entire data population. The risk that arises because the auditor is unable to find…
Which of the following encompass many elements of general best practices? Choices: A. Ensuring that audit paths are generally horizontal and/or vertical, and are as short as possible subject to this. B. Grouping together inputs, as well as calculated items that are related to each other. C. Creating a clear direction of logical flow within each worksheet. D. All are elements of general best practices. E. Using as few worksheets (and workbooks) as possible
While planning a specific audit, the PRIMARY purpose of assessing risks of the area under review is to provide reasonable assurance that material items will be adequately covered during the audit work. a) True b) False
Auditors identify and assess the risk of material misstatement at these two levels Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Financial Statement level and Information Process Goals level b Financial statement level and Operations Process Goals level c Information Process Goals level and Operations process goals level d Financial Statement Level and Relevant Assertion Level
Why is the audit team more concerned with controlling the exposure to the risk of overreliancethan with the risk of underreliance?a. Only the risk of overreliance results in an incorrect audit decision.b. The risk of underreliance is not related to the audit team’s study and evaluation of internalcontrol.c. The risk of overreliance can ultimately result in the audit team’s failing to reduce auditrisk to acceptable levels.d. The risk of underreliance can be controlled by performing tests of controls during theinterim period.
14. Which of the following tasks that the auditor may perform in relation to Risk Management without any reservation? Group of answer choices Facilitating identification and evaluation of risks Setting the risk appetite Giving assurance on the risk management process and provide recommendation Taking accountability for risk management
Urgent Answer please 2. Explain Audit Commitee by decribing the role and responsibilities. This is full question and not an eassy question at all. Answer must be plagirism free and in reasonable length. Length should not be too short or too long. Give reasonable answer please.
The client and the auditor usually agree that some schedules, analyses, reconciliations, and computations are to be prepared by the client's staff for submission to the auditor. TRUE OR FALSE? WHY?
When testing a control activity’s operating effectiveness, procedures the auditor performs totest operating effectiveness would likely includea. Inquiry of appropriate personnel.b. Reading over the company’s code of conduct.c. Reperformance of the control activity.d. Both a and c are correct.
TRUE OR FALSE: AUDITING 1. The less extensive the evidence-gathering procedures the lower the chances of formulating appropriate conclusion and the higher the level assurance that a practitioner can provide. 2. The concepts and principles on auditing and assurance introduce students to the theories underlying auditing services and provides opportunities to develop technical expertise in applying the concepts learned 3. The practitioner is required to pursue any matter which may lead to a material adjustment or modification to the subject matter of information 49. An independent auditor may participate in preparing financial statements including accompanying notes. 5. Nature of financial reporting involves preparation of financial statements based on the management’s judgment in applying an applicable financial reporting framework through coordination with the external auditor
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The difference between assessing control risk for IT control activities versus assessing control risk for manual control activities is best described as follows: Multiple Choice О in a manual environment it is important for the auditor to gain an understanding of the internal control activity before assessing control risk. О in an IT environment, it is not important to gain an understanding of the internal control activity before assessing control risk. О In an IT environment, it is likely that control risk will be assessed as low on largely all audit engagements. О the assessment process that needs to be undertaken for IT controls is essentially the same as would be taken for manual controls.