Which of the following BEST (select one) describes the purpose of preliminary planning: a) To gain an understanding of detailed testing requirements such as sample sizes. b) To formulate a preliminary assessment of the key risks and controls in the area under review in order to formulate the audit scope and objectives. c) To provide management with a timeline of audit activity. d) To determine and plan for substantive audit requirements.

Q: What are the Generally Accepted Auditing Standards? List and briefly explain them.

A: GAAS (Generally Accepted Auditing Standards) is indeed a set of standardized rules used among…

Q: Which of the following internal control components involves the ongoing evaluation of the…

A: Internal controls are implemented to prevent fraud in the organization. These are the rules or…

Q: Which of the following tests are considered further audit procedures that may be designed after…

A: Substantive test of details are considered further audit procedures that may be designed after…

Q: Auditors need to identify audit risk in planning an audit engagement. In doing so, the audit risk…

A: Answer (a) – Audit Risk – Audit risk is a risk that the auditor may give inappropriate opinion when…

Q: Which of the following BEST (select one) describes the purpose of the audit work program? a) To…

A: Audit refers to verifying balances of financial statements of a organization by using proper…

Q: Discuss the differences between a first-party, second-party, and third-party audit.

A: The first-party audit is also known as internal audits. This is performed by internal audit…

Q: Differentiate between tests of controls and substantive testing and the relationship between the two…

A:

Q: Each of the following steps should be performed prior to accepting an audit engagement except:

A: Explanation and answer is given below,

Q: When testing IT controls, which of the following BEST (select one) describes the IT auditor's focus:…

A: IT controls audit is the process of evaluating an organization's IT controls to determine their…

Q: For auditors, the term materiality is important, both at the planning stage of the audit and at the…

A: Materiality is a concept in accounting refers to that all the material facts / items should be…

Q: When testing IT controls, which of the following BEST (select one) describes the IT auditor's…

A: IT controls audit is the process of evaluating an organization's IT controls to determine their…

Q: What is meant by the term 'analytical procedures' and Describe the situations in the audit when…

A: Analytical procedures refer to the evaluation of financial information made by studying plausible…

Q: Which of the following is correct about ISA 520? O a. ISA 520 deals with the procedures after an…

A: The International Standard on Auditing 520 focuses on the analytical procedure used by the auditors…

Q: scribe the m

A: External Audit is the audit done by auditors appointed by the shareholders, who give audit report…

Q: Explain what is included in the risk assessment section of the audit file and the purpose of each…

A: Auditing refers to the art of inspecting and investigating financial accounts of a company. It is…

Q: What are the objectives of ISA 520? O a. To obtain evidence from third parties O b. To obtain the…

A: SOLUTION- ISA 520- IT DEALS WITH THE AUDITORS USE OF ANALYTICAL PROCEDURES AS SUBSTANTIVE PROCEDURES…

Q: If recommendations are made to the audit report noted problems and weaknesses, written responses…

A: When recommendations are made to the audit report noted problems and weaknesses, written responses…

Q: What are the purposes of preliminary analytical procedures and how does it differ from the…

A: Lets understand the basics. Auditor is responsible for making a correct opinion regarding the…

Q: termine both the relationship of risks in the planning of the audit and factors that influence those…

A: An audit is when an auditor examines or inspects various books of accounts, followed by a physical…

Q: The auditor shall develop an audit plan that shall include a description of: The nature, timing and…

A: Audit plan plays an important factor during the course of an audit. Before conducting an audit, an…

Q: uring the planning stage, an audit planning memo will consist of these four main steps: i) Risk…

A: Audit is very important in the accounting of the company but there are different steps required for…

Q: Defining what lapping is and how it might be discovered by an auditor is the first step. The auditor…

A: Lapping is a fraudster activity in which one persons money is recorded as payment received from…

Q: Analytical procedures issued in the planning stage of an audit, generally_______ Select one:   a.…

A: The question is asking about the purpose of analytical procedures in the planning stage of an audit.…

Q: The main objective of audit planning is to ensure appropriate attention is given to all areas of the…

A: Audit means checking and examining the accuracy and authenticity of financial statements by…

Q: Introduce and explain the principles of independence and objectivity, and explain how they apply to…

A: Principle of INDEPENDENCE -  This principle states that the auditor should perform independently…

Q: Discuss the importance and extent to which analytical review can be relied on in supporting an audit…

A: In auditing, an logical review is the evaluation and comparison of  fiscal data to determine the…

Q: The internal audit risk assessment process:

A: It refers to the systematic and recurring process for evaluating and identifying events that affect…

Q: Explain the circumstances when an auditor needs to assess the components of the audit risk model…

A:

Q: All auditing standards have:  Select one: a. An executive summary b. An objective c. A summary d.…

A: Audit is the process of checking and verifying books of account of the business in order to ensure…

Q: Discuss how an audit committee would have to test the effectiveness of the risk management…

A: Risk management processes refer to the methods and procedures that a company follows to identify,…

Q: The audit process may be divided up into four phases. At which phase would the auditor normally…

A: Steps often involve validating sample transactions, conducting surveys, evaluating laws, rules, and…

Q: Explain how analytical procedures are useful in: (1) The risk assessment stage of the audit. (2) The…

A: As per standards on auditing (SA) 520 “Analytical Procedures“, The term “analytical procedures” mean…

Q: Explain the circumstances when the auditor should revise the components of the audit risk model and…

A: The auditor should revise the parts of the audit risk model once the proof collected throughout the…

Q: audit function: a) Risk assessment provides a framework for allocating limited resources to achieve…

A: Risk: It refers to the price paid for earning maximum returns. In business risk there is probability…

Q: n auditor in developing his overall plan for the expected scope and conduct of audit.

A: The audit plan lays out the strategy, audit procedure, and methodologies that will be used to…