Answered: The AICPA sets auditing standards for…

Business

Accounting

The AICPA sets auditing standards for auditors of non-public companies in the U.S. True False

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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Question 7

The AICPA sets auditing standards for auditors of non-public companies in the U.S.

True

False

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The standard unqualified opinion based on the audit of a public company's financial statements includes a. A discussion of Key Audit Matters if KAMs are discovered. b. A reference to Key Audit Matters if no KAMs are discovered. c. A statement that the CPA firm is registered with the AICPA. d. An indication of how long the firm has served as the company's auditors. e. A Basis for Opinion section preceding the Opinion of Financial Statements section.
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16-In the context of documentation of the audit procedures performed and audit evidence obtained the ISA 230 says "Audit documentation is not a substitute for the entity's accounting records". Which one of the following statements is appropriately describing the documentation of the audit procedures performed and audit evidence obtained? a. None of the options correctly describe the statement b. Audit documentation is not required when accounting records are available c. Accounting records are not required when audit documentations are available d. Both accounting records and audit documentations are essential
Question 1Not yet answeredMarked out of 1.00Flag questionQuestion textIn the audit of financial statements, an adverse report is issued when the CPA believes: a.the financial statements would be found to be materially misstated if an investigation were performed. b.some parts of the financial statements are materially misstated or misleading. c.the auditor is not independent. d.the overall financial statements are so materially misstated that they do not present fairly the financial position or results of operations and cash flows in conformity with GAAP/IFRS
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Question 13 According to ISA (UK) 580, Written Representations which TWO of the following must auditors obtain written representations about? A That the financial statements record and reflect all transactions B Material matters where other evidence is missing due to an emergency such as a fire or theft C The company's ability to continue as a going concern D Material uncertainties such as provisions where evidence is hard to obtain
Question 5 a) List and briefly the main threats to independence and objectivity as identified in IESBA's Code of ethics for Professional Accountants, for each threat you should give an example. b) Briefly explain the fundamental principle of confidentiality and list the circumstances in which obligatory and voluntary disclosure of Information may be applicable. Professional accountants are often involved in many different types of work ranging from performing the external audit to providing wider assurance services. Where an external audit is carried out the auditor required to give an opinion as to whether the financial statements present fairly the activities of the business over a period of time. c) Explain the concept of true and fair presentation.
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