STATEMENT 1: it would be very inefficient if copies of all the documents examined are to be included in the working paper. STATEMENT 2: In an audit engagement, the tedious job of accumulating working papers is delegated to the staff auditors.

STATEMENT 1: it would be very inefficient if copies of all the documents examined are to be included in the working paper. STATEMENT 2: In an audit engagement, the tedious job of accumulating working papers is delegated to the staff auditors.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The auditor is required to prepare audit documentation sufficient to enable an experienced auditor,…

A: Audit documentation is the principal record of auditing procedures applied, evidence obtained, and…

Q: Audit firms are expected to establish and maintain a system of quality control. PCAOB inspections…

A: A firm must establish and maintain a system of quality control . The firm 's system of quality…

Q: i need the answer quickly

A: Analyzing the optionsa) Confirm more accounts receivable than earlier planned: This option would not…

Q: (J) Kim Bryan, a new staff auditor, is confused by the inconsistency of the three audit partners to…

A: The assessment of the risk is the determination of risk at the entity level is the basis and initial…

Q: The acceptable audit risk for the financial statements overall tends to be low and is set by the…

A: In auditing, setting the acceptable audit risk for financial statements is crucial for ensuring the…

Q: {Auditing} 30. During the course of gathering audit evidence, an auditor obtains them from both…

A: Audit Evidence: The information gathered by an auditor in order to determine the integrity,…

Q: STATEMENT 1: Most of the information included in the permanent file are accumulated during the…

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

Q: If a client relies on information technology (IT) controls and the auditor plans to assess control…

A: The objective of the question is to identify the action that an auditor would not typically take…

Q: S1: The subsequent events period extends to the date of management representation letter and the…

A: To make sure that financial information is presented fairly and properly in compliance with the…

Q: In which of the following situations does the auditor potentially lack objectivity?Select one:…

A: Objectivity is a fundamental principle in auditing. It refers to the auditor's ability to maintain…

Q: Marsha Mason, CPA, believes that it is appropriate to obtain an understanding of internal control…

A: Understanding of internal controls is a preliminary step in planning the audit as it will help the…

Q: To be effective, certain audit procedures cannot be completed before the end of the audit. Identify…

A: An entity's financial statements, internal control systems, and accounting records are all…

Q: The competence (reliability) of audit evidence cannot be improved by testing a larger sample of…

A: Audit Evidence: Audit evidence are the supportive documents of the transaction on the basis of these…

Q: STATEMENT 1: Significant unexpected fluctuations identified by analytical review procedures wil…

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

Q: Explain how the circumstances under each of the following might reflect failed leadership by…

A: Auditors: an auditor is a person who is responsible to verify and review the accounting records and…

Q: Auditors usually leave the legend of a tick mark to the discretion of the staff members. TRUE OR…

A: Solution: Tick mark: While carrying out the audit work auditor places the tick mark near to it to…

Q: A CPA should disclose confidential client information without the consent of the client to: Another…

A: Compliance with standards The rule provides that a member cannot disclose any confidential client…

Question

**Statement 1:** It would be very inefficient if copies of all the documents examined are to be included in the working paper.

**Statement 2:** In an audit engagement, the tedious job of accumulating working papers is delegated to the staff auditors.

**Options:**

A. Only Statement 1 is incorrect
B. Only Statement 1 is correct
C. Both statements are incorrect
D. Both statements are correct

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

In auditing program change control, the IT auditor will: a. Not need to inspect program authorization forms for signatures b. Ensure an organization is following the process described in their documentation for program change control c. Make sure that only computer programmers move their own changes into a production environment d. Make sure that only computer programmers have tested the changes they made to programs
Why does a certified audit present a high degree of risk for a CPA? A. They are difficult to complete acccurately B. Auditors can be held liable for inaccuracies in the audit C. They are cost a CPA a lot of money D. All of
Why do we consider risk assessment the foundation of the internal audit function? To safeguard independence, many internal audit departments continue to perform risk assessments in a silo, without collaborating with and leveraging the work of ERM. Do you agree with this approach?
7
When is more frequent monitoring of internal controls not required?* When employees are poorly trained. When the control activity and risk being managed are important. When a department is making changes to an application being used in that department. When internal controls have recently been changed to reduce the frequency of errors.
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.