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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Question
Chapter 10, Problem 24DQP
a.
To determine
Identify the purpose of the brainstorming session of the audit team.
b.
To determine
Identify the participants of the brainstorming session of the audit team.
c.
To determine
Identify in the brainstorming session, the role of the two staff auditors.
d.
To determine
Identify the responsibility of the auditor as per auditing standards in detecting frauds.
e.
To determine
Identify the information to be indicated regarding the brainstorming session in the paperwork by the auditor.
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Students have asked these similar questions
Assessing the risk of fraud in a financial statementaudit is a difficult audit judgment. Auditing standards require the auditor to performseveral audit procedures to accumulate information to assess the risk of fraud. You arethe in-charge auditor responsible for planning the financial statement audit of Spencer,Inc. Two new staff auditors are assisting you with the initial audit planning and haveasked you the following questions.Briefly summarize your response to these staff auditor questions:a. What is the purpose of the audit team’s brainstorming session?b. Who should attend the brainstorming session and when should the session be held?c. What is the role of the two staff auditors in the brainstorming session?d. What is the auditor’s responsibility under auditing standards for detecting fraud?
When planning to perform an audit, an accountant must have a clear understanding of audit risk and its components.
The existing audit risk components consist of:
1. Control Risk
2. Detection Risk
3. Inherent Risk
For each of the following situations, determine the component of audit risk that exists and explain why.
1. The client failed to find fraud committed by his employees as early as possible because the client did not reconcile the bank balance every month.
2. The auditor's confirmation of accounts receivable failed to detect material misstatements in the sales and accounts receivable accounts.
3. Procedure for disbursement of money at the client which is carried out without the approval of the authorized official
John Wells, CPA, is planning the audit of CVG Services Inc. As a result of his risk assessment procedures, Wells has identified several fraud risks.
a. Explain in detail how Wells might respond to risks of material misstatement of the financial statements due to fraud.
b. Describe the auditors’ communication responsibilities in situations in which the auditors believe fraud has occurred.
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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