EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Chapter 14, Problem 14.14MCQ
To determine
Concept Introduction:
Inventory is the most valuable asset for a company. The company applies controls over inventory for its safeguard and detection of inventory frauds. The auditor also tests these controls to determine the nature and extent of the
Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.
To choose: The correct option.
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Students have asked these similar questions
Which of the following procedures would maintain threats at an acceptable level and not impair independence?
Recording transactions to an attest client's general ledger when the member has determined or approved the account
classifications for the transaction. Posting member - coded transactions to an attest client's general ledger. Preparing
financial statements based on information in the attest client's trial balance. Posting member - approved journal or other
entries to an attest client's trial balance.
This is a process of evaluating the effectiveness of a client's internal controls in preventing or detecting material misstatements in the financial statements is called __________________ (answer in All CAPS)
When planning the audit of internal controls for an issuer, the audit team shoulda. Identify significant accounts, locations, and assertions.b. Conduct a walkthrough of the internal control process.c. Make inquiries of employees regarding the existence of control activities.d. Reperform control activities performed by client employees to determine theireffectiveness.
Chapter 14 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 14 - Prob. 14.1RQCh. 14 - Prob. 14.2RQCh. 14 - Prob. 14.3RQCh. 14 - Prob. 14.4RQCh. 14 - Prob. 14.5RQCh. 14 - Prob. 14.6RQCh. 14 - Prob. 14.7RQCh. 14 - Prob. 14.8RQCh. 14 - Prob. 14.9RQCh. 14 - Prob. 14.10RQ
Ch. 14 - Prob. 14.11RQCh. 14 - Prob. 14.12MCQCh. 14 - Prob. 14.13MCQCh. 14 - Prob. 14.14MCQCh. 14 - Prob. 14.15MCQCh. 14 - Prob. 14.16MCQCh. 14 - Prob. 14.17MCQCh. 14 - Prob. 14.18MCQCh. 14 - Prob. 14.19MCQCh. 14 - Prob. 14.20MCQCh. 14 - Prob. 14.21MCQCh. 14 - Prob. 14.22MCQCh. 14 - Prob. 14.23PCh. 14 - Prob. 14.24PCh. 14 - Prob. 14.25PCh. 14 - Prob. 14.26PCh. 14 - Prob. 14.27PCh. 14 - Prob. 14.28P
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- when auditing VAT payable account, what are the considerations that you need to remember and procedures that you need to do say that you have gained a reasonable assurance of its compliance with standards and regulatory protocols?arrow_forwardWhich control activity is the entity implementing when credit and debt memorandums are prenumbered and accounted for on a daily basis. Select one a. Independent checks on performance b. Physical control over assets and records c. Adequate documents and records d. Proper authorization of transactions and activitiesarrow_forwardOutline the steps which can be taken to investigate occupational fraud.arrow_forward
- Determine possible fraud schemes involving long-lived assets.arrow_forwardWhen auditing related party transactions, an auditor places primary emphasis on O A. B. C. D. Verifying the accuracy, valuation, and allocation of the related party transactions. Ascertaining the rights and obligations of the related parties. Assessing the risks of material misstatement of related party transactions. Confirming the existence of the related parties.arrow_forwardInternal controls do each of the following except: A. Evaluate performance of employees B. Guarantee the accuracy if account records C. Protect assets D. Increase the likelihood that any errors will be caughtarrow_forward
- Which of the following management assertion is the most suitable assertion for “inspecting invoices to determine if the services provided by an electrical contractor are repairs or improvements to the client’s offices” evidence: Select one: a. Accuracy or valuation and allocation b. Occurrence or existence c. Cut-off d. Completenessarrow_forwardWhich of the following is an internal control activity that could prevent a paid disbursement voucher from being presented for payment a second time?a. Vouchers should be prepared by individuals who are responsible for signing disbursement checks.b. Disbursement vouchers should be approved by at least two responsible management officials.c. The date on a disbursement voucher should be within a few days of the date the voucher is presented for payment.d. The official who signs the check should compare the check with the voucher and should stamp “PAID” on the voucher documents.arrow_forwardIn a fraud examination, original documents must be protected from damage and tampering toa. Establish motive.b. Develop documentation for employee dismissal.c. Protect the chain of custody.d. Ensure that suspects are unaware of an investigation in progressarrow_forward
- Tests of controls in a GAAS audit are required fora. Obtaining evidence about the financial statement assertions.b. Accomplishing control over the occurrence of recorded transactions.c. Applying analytical procedures to financial statement balances.d. Obtaining evidence about the operating effectiveness of client control activitiearrow_forwardResearch fraud cases that involved agency conflicts. Provide the following: Overview of the organization Who was involved? How was the fraud committed? What was the outcome? What recommendations do you have to stop such a fraud relating to this conflict of interest?arrow_forwardWhich of the following services is not considered to be a hosting service and, as such, will not impair independence if performed for an attest client? Acting as the sole host of a financial or non-financial information system of an attest client Having possession of a depreciation schedule prepared by the member, provided the deprecation schedule and calcu- lation are given to the attest client so that attest client's books and records are complete. Providing electronic security or back-up services for an attest client's data or records! All of the above are not considered to be a hosting service.arrow_forward
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