AUDITING+ASSURANCE SERVICES (LL)
11th Edition
ISBN: 9781266448119
Author: MESSIER
Publisher: MCG
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Question
Chapter 14, Problem 14.27P
To determine
Concept Introduction:
To discuss: The appropriate audit procedure for the selected assertions
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Students have asked these similar questions
Following are seven audit activities.
1 (Click the icon to view the audit activities.)
Requirement
For each activity listed above, indicate in which phase of the audit the procedure was likely performed.
1 (Click the icon to view the phases of the audit.)
Audit activity
Phase
а.
Examine invoices supporting recorded fixed asset additions.
b.
Review industry databases to assess the risk of material misstatement in the financial statements.
С.
Summarize misstatements identified during testing to assess whether the overall financial
statements are fairly stated.
The preparation of audit documentation is an integral part of an auditor’s examination of financial statements. On a recurring engagement, auditors review the audit plans and audit documentation from the prior audit while planning the current audit to determine their usefulness for the current-year work.Required:a. (1) What are the purposes or functions of audit documentation? (2) What records may be included in audit documentation?b. What factors affect the auditors’ judgment of the type and content of the audit documentation for a particular engagement?c. What should be included in audit documentation to support auditors’ compliance with generally accepted auditing standards?d. How can auditors make the most effective use of the prior-year audit plans in a recurring audit?
Discuss the auditor’s responsibility for detecting subsequent events(a) prior to the completion of field work;(b) prior to signing the audit report, and(c) between the date of the audit report and the issuance of the financialreport.
Chapter 14 Solutions
AUDITING+ASSURANCE SERVICES (LL)
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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- The auditing standards regarding subsequently discovered facts refers to knowledge obtained aftera. The date the fieldwork began.b. The date of the auditor’s report.c. The date of the financial statements.d. The date interim audit work was completearrow_forwardMy question is on auditing where I want to know whether the audit evidence is sufficient and appropriate such as oral representation by management, year end suppliers statement and physical inspection of a non current assetsarrow_forwardListed below are several of the auditors’ general objectives in performing substantive procedures on an asset account: Establish the existence of assets. Establish that the company has rights to the assets. Establish the completeness of recorded assets. Verify the cutoff of transactions. Determine the appropriate valuation of the assets. Establish the clerical accuracy of the underlying records. Determine the appropriate financial statement presentation and disclosure of the assets. Required: Indicate the general objective (or objectives) of each of the following audit procedures: a. Observe the client’s physical inventory. b. Locate on the client’s premises a sample of the equipment items listed in the subsidiary plant and equipment ledger. c. Obtain a listing of inventory and reconcile the total to the general ledger. d. Trace a sample of shipping documents to recorded sales transactions. e. Identify related parties. f. Vouch selected purchases of…arrow_forward
- Audit standards require auditors to _______. conduct specific audit procedures to identify subsequent events that may occur up through the date of the auditor’s report conduct specific audit procedures to identify subsequent events that may occur after the date of the auditor’s report. apply optional use of analytical procedures to increase assurance levels related to subsequent events delegate auditing of subsequent events to the internal audit function A compilation engagement is _______. an audit of the financial statements, whereby an auditor expresses an opinion on the financial statements an audit of the system of internal control, whereby an auditor expresses an opinion on the system of internal control when an accounting firm assists management in the presentation of financial statements but does not audit, review, nor provide assurance as to whether the financial statements are presented fairly. when an audit firm assists management in the presentation of financial…arrow_forwardWhich of the following types of audit evidence generally is the most reliable? A. Inquiries made of management B. confirmation of account information C. analytical procedures D. review the prior-year audit processarrow_forwardFollowing the date of the financial statements, auditors complete the substantive processes. Identify the most common actions that auditors do.arrow_forward
- In determining whether transactions have been recorded, the direction of the audit testing should be from the: A. General ledger balances B. Adjusted trial balance C. Original source documents D. General journal entriesarrow_forwarda1.Which of the following best describes the auditors’ approach to auditing property, plant and equipment on continuing audit? Multiple Choice A. Perform analytical procedures. B. Substantiating all property, plant & equipment at year end. C. Audit the additions and reductions in property, plant & equipment during the period. D. Take a complete inventory of property, plant & equipment. a2.Which of the following is true about the audit of property, plant & equipment? Multiple Choice A. For the first audit of company, the audit of these accounts may require substantial additional time. B. Because of the materiality of these accounts, they generally require a substantial amount of audit time. C.One of the most difficult assertions to audit for these accounts is existence. D. Confirmation is an important audit procedure for these accounts.arrow_forwardIn determining whether transactions were really exist, the direction of the audit testing should be from the A. Financial Statements B. Original Source Documents C.General Ledger Balances. D.General Journal Entriesarrow_forward
- Audit documentation that shows the detailed evidence and procedures regarding the balancein the accumulated depreciation account for the year under audit will be found in thea. Current file audit documentation.b. Permanent file audit documentation.c. Administrative audit documentation in the current file.d. Planning memorandum in the current file.arrow_forwardPlease see attached screenshot. Thank you!!!!arrow_forwardBased on the information in scenario C, classify the information (1-8) according to the elements of an audit finding (criteria, condition,cause, effect and recommendations)arrow_forward
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