Which items are matters ofgovernance interest that anauditor would wish todiscus with those chargedwith govenance!C a The general approach andoverall scope of the audit.Og The potential effect onthe financial statement of anymaterial risks andexposures,a Material uncertaintiesrelated to events andconditions that may castSignificant doubt on theentity's ability to continue asa going concern.04 all of above

When auditors perform their duties, they need to communicate critical issues with those charged with…

Answered: Which items are matters of governance…

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter1: Auditing: Integral To The Economy

Section: Chapter Questions

Problem 16MCQ

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Similar questions

Which of the following does NOT describe substantive procedures? O includes inspection, inquiry, and confirmation O also known as substantive testing or tests of details O influenced by the overall risk assessment O designed to obtain indirect evidence of information included in the financial statements
Which is not a Risk Assessment Procedure?a. Ratio Analysisb. Observation of Activitiesc. Account Receivable confirmationsd. Inspection of Documentse. Inquiry of Internal Auditors Is it a or c ???
Which of the following is not a content of current audit file? Copies of communication with experts or other auditors Audit evidence obtained Memorandum and Article of Association Audit planning documentation Which one of the following is other indicator or events or conditions that may cast significant doubt on the entity's ability to continue as a going concern? Auditing and Cont... 10 EN , NE al Y-
tch the type of risk with the related definition.A. Detection riskB. Control riskC. Inherent riskD. Audit risk___ 1. The probability that an auditor will give an inappropriate opinion on financial statements.___ 2. The probability that audit procedures will fail to produce evidence of material misstatements.___ 3. The probability that the client's internal control policies and procedures will fail to detect material misstatements if they have entered the accounting system.___ 4. The probability that material misstatements have occurred in transactions entering the accounting system.
What type of audit opinion is preferred when analyzing fi nancial statements? B . Adverse.
d. For each of the following, determine how the effectiveness of the entity's internal control affect the sufficiency and appropriateness of evidence gathered by auditors. a As the entity's intemal control is more effective. auditors would asess lavels of material minstatament This would allow them to permit a level of detection risk, which meens that they could gather sufficient and appropriate evidence. bAs the ontity's internal control is less effective, auditors would asses levels of material misatatement. This would requre auditors to controi detoction risk to levels, which means that they would be required to gather sufficient and appropriate evidence less more
Requirement: Indicate where management assertions are being validated by the below substantive auditprocedures. Existence/Occurrence(E/O) Rights &obligations(R/O) Completeness(C) Valuation andallocation/Accuracy(V/A) Presentation& disclosure(P/D) a. Inspect securities on handand confirm securitiesheld by custodian.b. Trace serial numberindicated in the securityto the list of investmentsecurities maintained bythe client.c. The investment securitieslisted on the schedule ofinvestment transactionsof the client aremathematically accurateand agree with thegeneral ledger.d. Read minutes of meetingof board of directorsregarding investmentsused as collateral forborrowings.e. Recalculate gains andlosses on sale ofsecurities.f. Recalculate interest anddividend revenues.g. Inspect securitiessimultaneously with countof other liquid assets.h. Verify fair values ofsecurities with publishedprice quotations.i. Obtain an understandingon management’s processin classifying…
Choose the appropriate audit opinion from the following:... Choose the appropriate audit opinion from the following: • Adverse • Disclaimer • Qualified • Unmodified Auditors' judgment about the Pervasiveness of the Effects or Possible Effect on the Financial Statements Nature or Matter Giving Rise to the Modification Not Material Material but not pervasive Material and Pervasive Scope limitation Departure from GAAP
Statement 1: An entity wherein the client has a nominal interest, is considered a related. Statement 2: lf the auditor performed analytical procedures in the audit completion phase and discovers a previously unrecognized risk, the auditor shall issue an adverse opinion. Statement 3: One of the management's responsibilities regarding related party transactions is to properly account for and disclose such transactions. A. Only one statement is correct B. Only two statements are correct C. All statements are correct D. All statements are incorrect
The risk that the financial statements are materially misstated prior to audit refers to the risk of material misstatement. Are auditors responsible for identifying and assessing the risk of material misstatement? What does the term "material misstatement" mean? Support your answer with an example from the ZAIN Financial Statements 2022.
11. Which of the following is an example of an assurance engagement providing limited assurance? A. An engagement to express an opinion whether the financial statements are prepared in all material respects, in accordance with an identified financial reporting framework В. B. An engagement, to state whether, on the basis of procedures which do not provide all the evidence that would be required in an audit, anything has come to the practitioner's attention that causes the practitioner to believe that the financial statements are not prepared in all material respects, in accordance with an identified financial reporting framework. C. An engagement to carry out those procedures of an audit nature to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings. D. An engagement to use accounting expertise as opposed to auditing expertise to collect, classify and summarize financial information. С.
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