Which of these statements is/are correct?I lf an auditor had the required knowledge and intentionally failed to fulfill a certain requirement in thecontract, they may be guilty of contract fraud.II Reasons for increased litigation against auditors include recession and tough economic timesresulting in business failures.Select one:O a. Only II is correct.b.Both (1) and (1) are correct.Both (1) and (11) are incorrect.O d. Only I is correct.

Audit means checking of financial statements of a company.

Which of these statements is/are correct? | If an auditor had the required knowledge and intentionally failed to fulfill a certain requirement in the contract, they may be guilty of contract fraud. |I Reasons for increased litigation against auditors include recession and tough economic times resulting in business failures. Select one: O a. Only II is correct. O b. Both (1) and (II) are correct. C. Both (1) and (11) are incorrect. d. Only I is correct.

Which of these statements is/are correct? | If an auditor had the required knowledge and intentionally failed to fulfill a certain requirement in the contract, they may be guilty of contract fraud. |I Reasons for increased litigation against auditors include recession and tough economic times resulting in business failures. Select one: O a. Only II is correct. O b. Both (1) and (II) are correct. C. Both (1) and (11) are incorrect. d. Only I is correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Individuals who believe they relied on misstated financial statements to make a decision andhave suffered losses as a result will issue an action known as aa. Breach of contract.b. Tort.c. Securities litigation.d. Constructive fraud.
Explain how the circumstances under each of the following might reflect failed leadership by auditors and the audit firm: • Under-reporting of time on an engagement• Premature sign-off on audit procedures• Accepting weak client explanations for accounting
Why is the risk that the auditor might make a mistake in expressing a modified opinion on financial statements, which are in reality, free from material misstatements and are fairly presented considered a business risk?
s1: Client's representations, both written or oral, are not considered to be a persuasive type of evidence that the auditor obtains. s2: To substantiate the information provided by management about litigation, claims, and assessments, the auditor should ask the client to send letters of audit inquiries to its lawyers. a. BOTH STATEMENTS ARE TRUE b. BOTH STATEMENTS ARE FALSE c. ONLY S1 IS TRUE d. ONLY S2 IS TRUE
Which of the following conditions or events would most likely cause an auditor to have substantial doubt about an entity's ability to continue as a going concern? Select one: O a. Significant increase in related-party transactions. O b. Research and development projects are postponed. O c. The CEO, who is key to the company's operations, resigned. O d. All of the options are correct.
Some auditors claim that increased exposure under creates a litigation environment that is unfairly risky for auditors. Do you think that the inability of auditors to detect a financial statement misstatement due to gross deficiencies in internal controls over financial reporting should expose auditors to litigation? Why or why not? Include reference to appropriate ethical standards in your response.
19. An auditor conducting an audit in accordance with ______________is responsible for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error. a. ISAs b. None of the options c. IFRS d. IAS
An unqualified opinion: a) is given when there is a conflict of interest.b) is one made without reservation.c) © is made when auditors are not fully qualified to audit the financial statements.d- is one made with reservation
Which one of the following statements is false? O A. Management accounting reports tend to be specific. O B. Management accounting reports are produced as often as required. O C. Management accounting reports are subjected to the principles and practices of GAAP. O D. Management accounting reports are not required by law.
Negative Assurance in Review Reports. One portion of the report on a review services engagement is the following: “Based on my review, I am not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformitywith generally accepted accounting principles [or another framework for financial reporting].”Required:a. Is this paragraph a “negative assurance” given by the accountants?b. Why is negative assurance generally prohibited in audit reports?c. What justification is there for permitting negative assurance in a review services report on unaudited financial statements and on interim financial information?
{Auditing} 33. The auditor shall express ________opinion when he concludes that there are possibilities of material misstatements that are pervasive to the financial statements. a. Adverse b. Qualified c. None of the options d. Disclaimer
4 In order for the auditor to perform the audit work, the accountant does not have to first prepare the financial statements needed. Question 4 options: a) True b) False