Under what circumstances would an auditor choose to confirminformation such as the right of return or special sales terms in addition to the customerbalance?

Q: Q. If the auditor traces a sample of receiving reports to the inventory records, the auditor is…

A: The objective of the question is to determine whether the statement is true or false. The statement…

Q: ecause of inadequate records the auditor is uncertain as to whether the company’s major investment…

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

Q: As an auditor, why would we be concerned with a high level of transactions that exceed the Bendford…

A: Benford's Law is a statistical principle that suggests certain digits (1 to 9) occur with…

Q: Why do auditors consider inventory errors pervasive?

A:

Q: The risk that the auditors will conclude, based on substantive procedures, that a material…

A: The risk you are referring to is known as the risk of substantive procedures not detecting a…

Q: Describe the FASB's rules or standard on revenue recognition.  Where do we find the FASB's revenue…

A: Accounting standards are developed by FASB (Financial Accounting Standard Board). These standards…

Q: Which statement is false

A: Meaning of Internal control The process designed, implemented and maintained by those charge with…

Q: he factor that distinguishes an error from fraud or other irregularities is A) materiality. B)…

A: Lets understand the basics. Audit is an examination of book of account in order to give an opinion…

Q: Which of the following is least likely to be a factor that might indicate to an auditor that an…

A: special considerations are used by auditors where there is a high risk of material misstatements in…

Q: When planning an audit, which of the following is not a factor that affects auditors’ decisions…

A: An auditor is a professional body appointed by firm or enterprise to examine books of accounts and…

Q: t is generally acceptable for analytical procedures to be the only audit procedure used to test…

A: solution concept analytical procedure               Analytical procedure used as a audit procedure…

Q: In your opinion, is there value to an auditor’s opinion if it is impossible to narrow down a…

A: Auditor: Auditor is an accounting professional hired, to review the financial statements prepared…

Q: Accounts payable generally present the auditors with difficult valuation problems.   false…

A: Accounts payable is an obligation that an entity has to recompense within a year.

Q: Provide two inherent risk factors in the revenue cycle and identify the accounts that are likely to…

A: RCM (revenue cycle management) is a procedure used by healthcare systems in the United States and…

Q: true when the auditor determines the client has a low risk of material

A: First option is wrong because risk of material misstatements is judged not only based on the…

Q: The amount of subjectivity involved in establishing fair value estimates can be complex for…

A: GIVEN   The amount of subjectivity involved in establishing fair value estimates can be complex for…

Q: Can the auditor obtain more audit evidence to compensate for the lack of perceived appropriateness…

A: The information that auditors rely on to back up their findings and judgements on the financial…