Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Chapter 10, Problem 23DQP
To determine
Based on the given information indicate whether the risk of fraud is increased and if yes, then which fraud condition is being indicated.
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During audit planning, an auditor obtained the following information:1. The company’s controller works very hard, including evenings and weekends, andhas not taken a vacation in two years.2. The company’s board of directors includes a majority of directors who are independent of management.3. Assets and revenues are based on significant estimates that involve subjective judgments and uncertainties that are hard to corroborate.4. The company is marginally able to meet exchange listing and debt covenant requirements.5. The company’s financial performance is threatened by a high degree of competitionand market saturation.6. New accounting pronouncements have resulted in explanatory paragraphs forconsistency for the company and other firms in the industry.7. The company has experienced low turnover in management and its internal auditfunction.8. Significant operations are located and conducted across international borders injurisdictions where differing business environments and cultures…
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Please answer with reason for all why the option is correct and why the other options are incorrect
Which of the following matters would an auditor most likely ask client management to affirm in an audit representation letter?
Communications with those charged with governance concerning weaknesses in internal control
Plans to acquire or merge with other entities in the subsequent year
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Management's acknowledgment of its responsibility for the detection of employee fraud
Chapter 10 Solutions
Auditing and Assurance Services (16th Edition)
Ch. 10 - Prob. 1RQCh. 10 - Define misappropriation of assets and give two...Ch. 10 - Prob. 3RQCh. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - Prob. 7RQCh. 10 - Prob. 8RQCh. 10 - Prob. 9RQCh. 10 - Prob. 10RQ
Ch. 10 - Prob. 11RQCh. 10 - Prob. 12RQCh. 10 - Prob. 13RQCh. 10 - Prob. 14RQCh. 10 - Prob. 15RQCh. 10 - Prob. 16RQCh. 10 - Prob. 17RQCh. 10 - Prob. 18RQCh. 10 - Prob. 19.1MCQCh. 10 - Prob. 19.2MCQCh. 10 - Prob. 19.3MCQCh. 10 - Prob. 20.1MCQCh. 10 - Prob. 20.2MCQCh. 10 - Prob. 20.3MCQCh. 10 - Prob. 21.1MCQCh. 10 - Prob. 21.2MCQCh. 10 - Prob. 21.3MCQCh. 10 - Prob. 22.1MCQCh. 10 - Prob. 22.2MCQCh. 10 - Prob. 22.3MCQCh. 10 - Prob. 23DQPCh. 10 - Prob. 24DQPCh. 10 - Prob. 25DQPCh. 10 - Prob. 27DQPCh. 10 - Prob. 28DQPCh. 10 - Prob. 29DQPCh. 10 - Prob. 31DQPCh. 10 - Each year near the balance sheet date, when the...Ch. 10 - Prob. 33DQPCh. 10 - Prob. 34DQP
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