To correct all errors they discover in the accounting records for the year under audit. The auditors   should prepare adjusting journal entries for material items only. Because  they are concerned with  the fairness, not the preciseness, of the client's financial statements. Select one: True False

Q: State the appropriate audit opinion that the auditor would require.

A: Among various Auditor's Opinions, one of the opinion can be Disclaimer of Opinion.  Auditor needs to…

Q: The main objective of an audit is а. Maintaining books of accounts properly b. Presentation of true…

A: Audit is the process of checking, verifying and examining books of account and financial information…

Q: Dodge, CPA, is auditing the financial statements of amanufacturing company with a significant amount…

A: Trade account receivables are the payments which the customer owes to the company. They arise when…

Q: An auditor's techniques for examining the balance sheet's accounts receivable account are most…

A: Answer: Concept Balance sheet are the financials of the company. They are expected to be true and…

Q: A client that recently loosened its credit-granting policies uses percentages of aging categories as…

A: Lets understand the basics. Management prepares allowance for doubtful debt account in order to…

Q: Auditors are required to communicate numerous issues to those charged with governance of the firm…

A: Auditor is appointed in the company to give an opinion on the financial statements. To form an…

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: 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: Distinguish between program service expenses and supporting service expenses.

A: A nonprofit organization’s expenses can be classified into two types, they are expenses for program…

Q: b. A reply from a receivable confirmation letter received from the customer through the client is…

A: Confirmation letters are part of audit procedure and are sent to outside parties to confirm certain…

Q: 19.  The auditors should propose an adjusting journal entry for all material related-party…

A: Audit is the process of checking, verifying and examining books of account and financial statements…

Q: An audit opinion of a company’s fi nancial reports is most likely intended to:A . detect fraud.B .…

A: Audit opinion: The opinion present by an auditor of findings of the audit examination is known as…

Q: If the auditor found misstatements in financial statements resulting from fraud, the auditor…

A: As per Auditors responsibilities to consider the fraud in an audit of financial Statements.  If The…

Q: The Accountant Should?

A: A compilation of financial statements is a non-assurance engagement. Meaning, the accountant…

Q: Auditors try to identify predictable relationships when using analytical procedures. Relationshiipss…

A: Analytical Procedure- Analytical Procedure is evaluation through analysis of financial information…

Q: Auditors make materiality judgments during the planning/risk assessment phase of the audit to be…

A: Introduction: An auditor verifies the authenticity of commercial transactions that have been…

Q: During the course of the year 2 audit of Smithsone Company, the auditor discovered the following…

A: Lets understand the basics.Adjusting journal entry is required to make to record correct amount of…

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: Describe the audit opinion that should be given and explain why. a) The client estimated its…

A: Every Business works on credit sales. It is obvious that some debtors may turn into bad debts at a…

Q: An auditor simply compares a current year balance with the prior year balance in order to help…

A: To identify trends, analysing the data of just one year and compare it with current year will not be…

Q: Auditors try to identify predictable relationships when using analytical procedures. Relationships…

A: Analytical processes are a crucial step in the audit process and involve evaluating financial data…

Q: 1) To obtain reasonable assurance about whether the financial statements as a whole are free…

A: Question 1: Answer is a  In  Financial statement the auditor has to express a fair opinion of audit,…

Q: You are auditing the balance in the prepaid insurance account for your audit client.  a) Name and…

A: Prepaid Insurance : It is a type of current Asset which is shown in the Balance Sheet of a Company…

Q: By how much would the December 31, 2021 retained earnings be misstated if no adjustments were made…

A: Adjustment Entries It is important for the entity to generate viable financial reporting system…

Q: Statutory auditor, during the regular audit, from incoming company A to draft letters that will be…

A: Auditor opinions, also known as audit opinions or audit reports, are formal statements issued by…

Q: {Auditing} 37. Based on professional judgment an auditor establishes that if the amount of error or…

A: Materiality level: In audits, the materiality level is the benchmark used to achieve reasonable…

Q: MOST likely to be performed before the balance sheet date? a. Determine the date of the Letter of…

A: Auditing is independent examination of financial statements to express an opinion on the financial…

Q: 6) Cutoff tests designed to detect purchases made before the end of the year that have been recorded…

A: 6) Correct option is 'completeness'

Q: 4.1 - The evidence that is gathered by an auditor plays a crucial role in the results of the audit…

A: The evidence obtained allows auditors to form opinions on the fairness of the financial statements…

Q: equired: 1.By how much would the December 31, 2021 retained earnings be misstated if no adjustments…

A: Journal entry is the practice of recording commercial transactions for the first time in the books…

Q: Which of the following types of audit evidence can be considered the least reliable? a. Purchase…

A: Audit evidence is the data and information which is collected by an auditor by examining the…

Q: By how much would the December 31, 2021 retained earnings be misstated if no adjustments were made…

A: Note: Only 39 & 40 have been answered as required.   39. 2007 Items 1 and 2 will self-correct in…

Q: ient’s treasurer. d. A check, issued by the company and bearing the payee’s endorsement, that is…

A: Given: To explain the correct option among the given options as,

Q: all statements are true B. all statements are false C. S1 and S2 are true D. S1 and S3 are true

A: Correct option : B

Q: In auditing the client’s receivables, the auditor decided to select entries in the sales journal and…

A: Assertion of Existence: Assets or liabilities of the company exist at a given date, and recorded…

Q: least likely to be your starting point in computing materiality

A: First option is wrong because normalized net income is one of the three benchmarks for computing…

Q: Which of the following statements is always true when an auditor is planning a year-end audit? 2…

A: The objective of this question is to identify the statement that is always true when an auditor is…

Q: The balance sheet for Adams Corporation follows: Current assets Long-term assets (net) Total assets…

A: Financial ratios are quantitative metrics used to evaluate and analyze the financial performance,…