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: South-Western College Pub
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Question
Chapter 1, Problem 20MCQ
To determine
Concept introduction: An audit is an independent examination conducted to ensure that the financial statements are true and fair. Auditing standards are certain defined rules and regulation that provide guidance to the auditors for conducting the audit efficiently and effectively. The auditing standards are followed to fulfill the objective of audit.
An external auditor is responsible for providing opinion on the truth and fairness of the financial statements.
To choose:The option that correctly explains the technical knowledge and expertise of the external auditor.
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Students have asked these similar questions
do you agree with the statement it audit should be considered absolute because it implies a distinction between regular auditors and auditors who examine computerized accounting information system why or why not
Practice question:
In the context of auditing, having competent technical abilities and skills as an accountant is more important than ensuring auditor independence and understanding the procedures to overcome threats to independence. Do you agree with this statement? Why or why not? Use examples to facilitate your explanation.
Both external auditors and accountants engaged in implementing or updating systems need a
basic understanding of accounting information systems. Compare the needs of the two
groups, identifying the areas where both need the same kind of understanding and the areas
where one group has essentially different needs.
Chapter 1 Solutions
Auditing: A Risk Based-Approach to Conducting a Quality Audit
Ch. 1 - Prob. 1TFQCh. 1 - Prob. 2TFQCh. 1 - Prob. 3TFQCh. 1 - Prob. 4TFQCh. 1 - Prob. 5TFQCh. 1 - Prob. 6TFQCh. 1 - Prob. 7TFQCh. 1 - Prob. 8TFQCh. 1 - Prob. 9TFQCh. 1 - Prob. 10TFQ
Ch. 1 - Prob. 11TFQCh. 1 - Prob. 12TFQCh. 1 - Prob. 13TFQCh. 1 - Prob. 14TFQCh. 1 - Prob. 15MCQCh. 1 - Prob. 16MCQCh. 1 - Prob. 17MCQCh. 1 - Prob. 18MCQCh. 1 - Prob. 19MCQCh. 1 - Prob. 20MCQCh. 1 - Prob. 21MCQCh. 1 - Prob. 22MCQCh. 1 - Prob. 23MCQCh. 1 - Prob. 24MCQCh. 1 - Prob. 25MCQCh. 1 - Prob. 26MCQCh. 1 - Prob. 27MCQCh. 1 - Which of the following factors is an example of a...Ch. 1 - Prob. 29RSCQCh. 1 - Prob. 30RSCQCh. 1 - Prob. 31RSCQCh. 1 - Prob. 32RSCQCh. 1 - Prob. 33RSCQCh. 1 - Prob. 34RSCQCh. 1 - Prob. 35RSCQCh. 1 - Prob. 36RSCQCh. 1 - Prob. 37RSCQCh. 1 - Prob. 38RSCQCh. 1 - Prob. 39RSCQCh. 1 - Prob. 40RSCQCh. 1 - Prob. 41RSCQCh. 1 - Prob. 42RSCQCh. 1 - Prob. 43RSCQCh. 1 - Prob. 44RSCQCh. 1 - Prob. 45RSCQCh. 1 - Prob. 46RSCQCh. 1 - Prob. 47RSCQCh. 1 - Prob. 48RSCQCh. 1 - Prob. 49RSCQCh. 1 - Prob. 50RSCQCh. 1 - Prob. 51RSCQCh. 1 - Prob. 52RSCQCh. 1 - Prob. 53RSCQCh. 1 - Prob. 54FFCh. 1 - Prob. 55FFCh. 1 - Enron and Arthur Andersen UP Enron was an energy...
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Similar questions
- i need the answer quicklyarrow_forwardWhich of the following documents or/ and procedures should be used by the auditor to gain a better understanding of the client ? 1 .Discussion with management 2. Communications with certain entities working in the same industry sector 3. Predecessor auditor assessment of the internal control 4. All answers are correctarrow_forward1. Please answer ASAP!!arrow_forward
- An assurance service is defined as a service thata. Provides auditing services to nonfinancial information.b. Reviews unaudited financial information.c. Improves the quality of information for decision makers.d. Reduces the risk in management decision making.arrow_forwardWhich of the following activities should the internal audit function NOT be involved in?a. Monitoring of management's performanceb. Reviewing adequacy of management information for decision-making purposesc. Taking responsibility for the implementation of a new sales ledger systemd. Assessing compliance with regulation Internal auditors may not perform:a. Audits of financial statements resulting in reports intended for management’s use only.b. Integrated audits leading to an audit opinion issued in accordance with PCAOB standards.c. Forensic audits.d. All of the above. An “integrated audit”, as required by Sarbanes-Oxley Act for U.S. public companies,includes an audit ofa. The company’s internal controlsb. The company’s financial statementsc. The company’s compliance with its rules and policiesd. Both A and B The auditor’s opinions on the effectiveness of internal control over financial reporting (ICFR) in anintegrated audit in accordance with PCAOB AS include the following types…arrow_forward1. What are the evidence garthering techniques Used in Information System Auditing by Internat auditors? 2. What are the evidence garthering techniques Used in Information System Auditing by external auditors? 3. what is the different between Internal and external auditors and what privilleges do internal auditors has than external. 4. By answering these questions use accessible reference and provide their link for me to read after, prefereable references are from ResearchGate, IEE and other accademic repository. 5. Use intext citations.arrow_forward
- The primary difference between operational auditing and financial auditing is that in operational auditinga. The operational auditor is not concerned with whether the audited activity is generating information in compliance with financial accounting standards.b. The operational auditor is seeking to help management use resources in the most effective manner possible.c. The operational auditor starts with the financial statements of an activity being audited and works backward to the basic processes involved in producing them.d. The operational auditor can use analytical skills and tools that are not necessary in financial auditing.arrow_forwardUnder what circumstances are external auditors likely to beinvolved in operational auditing? Give one example of operational auditing by a CPA firmarrow_forwardDocumentation of an Audit Data Analytic (ADA), should be sufficient enough such that: O An experienced auditor, with no prior connection to the engagement could understand the conclusions reached and significant judgments made An experienced auditor, who is familiar with the engagement could understand the conclusions reached and significant judgments made O An investor looking into the company could understand the conclusions reached and significant judgments made O Both "An investor looking into the company could understand the conclusions reached and significant judgments made" and "An experienced auditor, with no prior connection to the engagement could understand the conclusions reached and significant judgments made" are correctarrow_forward
- The primary difference between operation auditing and financial auditing is that in operational auditing....a.) The operational auditor is not concerned with whether the audited activity is generating information in compliance with financial accounting standardsb.) The operational auditor is seeking to help management use resources in the most effective manner possible.c.) The operational auditor starts with the financial statements of an activity being audited and works backward to the basic processes involved in producing them.d.) The operation auditor can use analytical skills and tools that are not necessary in financial auditing.arrow_forwardWhich of the following expressions best describes a situation under which the issuance of a report that concludes on the condition of the internal controls of an organization that provides technological services to one of our audit clients (SOC report) is required? It is that situation in which a CPA has been hired to evaluate a. the projected financial statements prepared by the client, to see if the expected results comply with hypothetical assumptions or not. b. the information systems and technologies subcontracted by the client, specifically in what corresponds to criteria of security, availability, integrity, confidentiality and privacy. c. any assertion or area that the client has asked to intervene (subject matter), and do so in accordance with compliance or not, with criteria or principles (against criteria). d. services that help the client maintain their financial independence.arrow_forwardPLEASE ANSWER THIS ASAP. THANK YOU SO MUCH. 1.Which of the following statements is incorrect? a. Management assertions are implied or expressed representations by management about classes of transactions, account balances and presentation and disclosures contained in the financial statements. b. Transaction cycles may vary from one entity to another and may also be affected by the nature of industry of the client. c. The primary goal of an auditor in an audit is to issue an opinion that the financial statements of an entity are fairly stated, in all material respects, in accordance with the applicable financial reporting framework. d. Reasonable assurance is moderate but not absolute level of assurance that the financial statements are free from material misstatements. 2. Which of the following statements does not pertain to responsibilities of management and those in charge of governance? a. Establish and implement internal controls relevant to the preparation of financial reports.…arrow_forward
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