Which of the following statements is incorrect?
Q: In response to an increased level of assessed risk of material misstatement, an auditor of…
A: The auditor shall perform RAP i.e Risk Assessment Procedure that provides a reasonable assurance…
Q: When performing audit procedures, the auditor is faced with an uncertainty of not detecting material…
A: Define sampling risk. Sampling risk is the risk that a sample statistic will differ from the true…
Q: Substantive analytical procedures are performed by auditor: To identify and assess detection risk To…
A: Auditor is the person who is responsible for performing audit work. Audit means checking and…
Q: S1: Analytical review procedures is required as an evidence-gathering substantive test procedure,…
A: Answer: S1: Analytical review procedures is required as an evidence-gathering substantive test…
Q: whether there is a reasonable possibility that the company's internal control system will fail to…
A: Internal control is the managements’ effective and efficient controls for achieving goals and…
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: 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: 8. An auditor should be aware of subsequent event that provide evidence concerning conditions that…
A: There are two question and both are separate, as per the guidelines first question has been answered…
Q: Which among the following is not a major purpose of onsite fieldwork conducted by the auditor as a…
A: The fieldwork consists of examining the risks involved in processes, evaluation of internal controls…
Q: (A) The requirement is to find the best statement concerning an auditor’s assessment of…
A: Control risk alludes to the probability that a large misrepresentation originating from a caused by…
Q: Which of the following types of audit evidence generally is the most reliable
A: Answer: Option B.
Q: Indicate whether you agree or disagree with each statement, and explain your reasoning. Each of…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: The auditor use the analytical procedure at various stages of audit: 1. Evaluate the operating…
A: Auditing is performed so as to anlayze the financial statements of the business for their…
Q: Discuss audit sampling for tests of details of balances and for tests of controls and substantive…
A: Audit sampling is the procedure applied to less than hundred percentage of the transactions under…
Q: The audit report provides reasonable assurance that thefinancial statements are free from material…
A: Introduction Audit report: The auditor's report expresses the auditor's judgment about the accuracy…
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: Uncorrected Misstatements and Performance Materiality. During the conduct of an audit, auditors may…
A:
Q: STATEMENT 1: Most of the information included in the permanent file are accumulated during the…
A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…
Q: Which of the following is least likely to be required on an audit? Evaluate the business…
A: Which of the following is least likely to be required on an audit? 1. Evaluate the business…
Q: Analytical procedures used when planning an audit should concentrate ona. Weaknesses in the…
A: Analytical procedures are used by the auditors to analyze the accounts and transactions of the…
Q: An independent auditor has the responsibility to design the audit to providereasonable assurance of…
A: The independent auditor’s plays a vital role regarding the internal controls of a public company.…
Q: When and why are analytical procedures performed by an auditor? Select all that apply. risk response…
A: Analytical procedures are a critical part of the audit process, helping auditors gain insights into…
Q: Which of the following statements is false regardingsubstantiveanalytical procedures?a. Substantive…
A: Audit is the process of checking and authenticating books of accounts and financial statements. It…
Q: ment of materiality guides audit planning and testing materiality is used to guide the validity…
A: To find the incorrect option as,
Q: Auditing standards require that a “brainstorming” session should be held at the beginning of each…
A:
Q: Which of the following risk types increase when an auditor performs substantive analytical audit…
A: Analytical Audit Procedures: Analytical procedure is a method by which standard balances are…
Q: The audit reporting requirements for comparatives discuss the following I. Prior period financial…
A: The audit reporting requirements for comparatives discuss the following: 1. If the prior financial…
Q: Auditors use different types of audit procedures to gather the evidencenecessary to conclude that…
A: Audit evidence is the evidence the auditor collects from the documents, the information provided…
Q: emphasis of the auditor in the following audit procedures?
A: Option 1 is wrong because by confirming the total amount of accounts payable subsidiary record with…
Q: Most auditors believe that financial statements are "presented fairly" when the statements are in…
A: Auditing evidence is the data gathered for survey of an organization's monetary transactions, inside…
Q: List A represents the types of opinions the auditor ordinarily would issue and List B represents the…
A: Qualified opinion Report Modifications: Add an emphasis of matter paragraph Explanation: When the…
Q: Applying substantive tests to the details of asset and liability accounts as of an interim date,…
A: SOLUTION- Substantive testing is an audit procedure that examines the financial statements and…
Q: Which of the following statements is correct about the reliability of audit evidence? a.…
A: Audit evidence means evidence or supportings that is obtained by auditor during the course of audit.…
Q: means the application of audit procedures to less than 100% of the items within an account balance…
A: Correct is Option C - Audit Sampling Audit sampling Means application of Audit procedures to less…
Q: STATEMENT 1: Significant unexpected fluctuations identified by analytical review procedures wil…
A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…
Q: Which of the following statements is not true? a. Tests of transactions are often performed…
A: In Auditing there are two types of procedures involved and are enumerated as below: a) Substantive…
Q: Which of the following does NOT accurately describe the concept of materiality? O performance…
A: The Materiality refers to the relevance, accuracy and reliability of the financial statements of thr…
Q: Audit situations 1 through 10 present various independent factual situations an auditor might…
A: At the time of auditing financial statements, auditor will check all analysis in detail and then can…
Q: What do auditors consider when determining the extent to which the internal auditors’ work will…
A: Risk of Material Misstatement: Material misstatement risk is the possibility that an organization's…
Q: audit procedures
A: S1 is true because the audit procedures are usually conducted by the audit staff. The auditor just…
Q: Inquiries of clients and reperformance normally have a low cost to perform. True False
A: As per the guidelines, only one question is allowed to be solved. Please upload separate questions…
Q: When applying analytical procedures during an audit, which of the following is the best approach for…
A: Analytical procedures are a crucial part of the audit process conducted by auditors to assess the…
Step by step
Solved in 2 steps
- Financial Audit Q&A Questions Answer Risks that may occur during assertion testing, but cannot be prevented due to the lack of time. Reports that need to be prepared to find out if there are significant changes in the client. The parties reported by the auditor are related to the results of the audit reports made. Terms that must be included in the document prepared by the client. Inspection activities to ensure the shipping or Destination Point in the recording of the financial statements is correct in accordance with the fragments. The auditor needs to know that the ending balance recorded in the financial statements is appropriate based on evidence of transactions in the company. The audit assertion underlying the vouching procedure. The audit assertion underlying the tracing procedure. The risk caused by the sample taken by the Auditor does not describe the characteristics of the data from the entire data population. The risk that arises because the auditor is unable to find…After the audit planning procedures, your audit team decided to place the preliminary audit risk at a high level. Which of the following is correct? A. The risk the planned further audit procedures will not be able to detect misstatement should be increased. B. The auditors should plan set the timing of its extensive substantive testing at year-end. C. The audit materiality levels should be increased. D. The auditors should plan extensive substantive testing through analytical procedures.An auditor’s decision either to apply analytical procedures as substantive tests or to perform substantive tests of transactions and account balances usually is determined by the(1) availability of data aggregated at a high level.(2) relative effectiveness and efficiency of the tests.(3) timing of tests performed after the balance sheet date.(4) auditor’s familiarity with industry trends.
- Which of the following is not an analytical procedure? O a. Determine the nature of the audit O b. Analysis of significant ratios and trends OC. Analysis of relationships between financial and non-financial data O d. Comparison with prior period informationWhich of the following is NOT a reason the auditor performs some substantive procedures at an interim audit date? O increase the effectiveness of the overall audit O client may require it for reporting purposes O allow the audit firm to decrease the amount of work during their 'busy season' O increases the efficiency of the year-end auditIn connection with the planning phase of an audit engagement, which of the following statements is always correct? a. Final staffing decisions must be made prior to completion of the planning stage b. Observation of inventory count should be performed at year-end c. A portion of the audit of a continuing audit client can be performed at interim dates d. An engagement should not be accepted after the client’s financial year-end
- Which two of the following characterize the work of fraud examiners?a. Analysis of control weaknesses for determination of acceptable fraud risk.b. Analysis of control strengths as a basis for planning other audit procedures.c. Determination of a materiality amount that represents a significant misstatement of the financial statements.d. Consideration of a materiality amount in cumulative terms—that is, becoming large over a number of years7. Analytical procedures: A. are not a type of audit evidence. B. are not required during the completion phase of the audit. C. performed during the planning phase of the audit are used as a substantive test in support of account balances. D. do not provide reliable evidence unless it is corroborated with other evidence. 8. Reasonable assurance allows for: A. low likelihood that material misstatements will not be prevented or detected by internal controls. B. no likelihood that material misstatements will not be prevented or detected by internal controls. C. moderate likelihood that material misstatements will not be prevented or detected by internal controls. D. high likelihood that material misstatements will not be prevented or detccted by internal controls. 9. Management implements internal controls to ensure that all required footnote disclosures are accurate. Auditors tests those controls to provide evidence supporting the presentation. A. completeness and valuation B.…Financial audit Q&A What risks that may occur during assertion testing, but cannot be prevented due to the lack of time? What reports that need to be prepared to find out if there are significant changes in the client? What is the parties reported by the auditor that are related to the results of the audit reports made? What terms that must be included in the document prepared by the client? What is the inspection activities to ensure the shipping or Destination Point in the recording of the financial statements is correct in accordance with the fragments? The auditor needs to know that the ending balance recorded in the financial statements is appropriate based on evidence of transactions in the company. What is the audit assertion underlying the vouching procedure? What is the audit assertion underlying the tracing procedure? What is the risk that caused by the sample taken by the Auditor does not describe the characteristics of the data from the entire data population?…
- In an audit sampling application, an auditora. Performs procedures on all items in a balance and makes a conclusion about the entirebalance.b. Performs procedures on less than 100 percent of the items in a balance and formulates aconclusion about the entire balance.c. Performs procedures on less than 100 percent of the items in a class of transactions tobecome familiar with the client’s accounting system.d. Performs analytical procedures on the client’s unaudited financial statements when planning the audit.23. Analytical procedures used to form an overall audit conclusion generally include A. Considering unusual or unexpected account balances that were not previously identified. B. Performing tests of transactions to corroborate management's financial statement assertions. C. Gathering evidence concerning account balances that have not changed from the prior year. D. Retesting controls that appeared to be ineffective during the assessment of control risk.DETERMINE WHETHER TRUE OR FALSE S1- Toward the end of an engagement, after all audit evidence has been gathered by the auditor, the auditor again considers materiality by comparing the combined misstatements with the preliminary or revised estimate for the entire set of the financial statements as a whole. S2- Changes in the regulatory or operating environment can result in changes in competitive pressures and significantly different risks.