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 15, Problem 61RSCQ
To determine
Introduction: Auditing refers to the examination of the financial statement of an entity and also to verify whether the books of accounts are maintained as per the required law or not. This process includes gathering evidence, evaluating it, and preparing a final report on the whole evaluation.
Type of audit report in the different situations provided.
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Students have asked these similar questions
“qualified audit report” and an audit report with a “disclaimer of opinion”. Please give explaination for both audit report with examples.
In the auditing process
Select one:
a.
the criteria for evaluating information will not vary depending on the information being audited.
b. the audit report communicates the auditor's findings to users.
c. the types and amounts of evidence remain constant from audit to audit
d.
evidence are gathered by the auditor to determine whether the audited information is stated in accordance with SEC standards.
If recommendations are made to the audit report noted problems and weaknesses, written responses detailing the following are requested from the audit client:
a.
A corrective action plan to resolve the problem and its root cause.
b.
The person responsible for implementing the corrective action.
c.
An expected implementation date.
d.
All of the options
Chapter 15 Solutions
Auditing: A Risk Based-Approach to Conducting a Quality Audit
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Similar questions
- Audit situations 1 through 10 present various independent factual situations an auditor might encounter in conducting an audit. List A represents the types of opinions the auditor ordinarily would issue, and List B represents the report modifications (if any) that would be necessary. For each situation, select one response from List A and one from List B. Select, as the best answer for each item, the action the auditor normally would take. Items from either list may be selected once, more than once, or not at all. Assume the following: The auditor is independent The auditor previously expressed an unqualified opinion on the prior-year financial statements unless otherwise noted Only single-year (not comparative) statements are presented for the current year (unless otherwise stated) The conditions for an unqualified opinion exist unless contradicted in the factual scenario The conditions stated in the factual scenario are material No report modifications are to be made except in…arrow_forwardidentify the basic types of audit reports other than a standard unqualified audit report and explain the circumstances under which each type of report is a favourite.arrow_forwardAudit Evidence can be in the form of the following, EXCEPT: a. Observation b. Any of the options are audit evidences c. Testimonial d. Documentaryarrow_forward
- which type of audit report the client prefer : Select one: a. unqualified b. disclaimer c. adverse d. qualifiedarrow_forwardGive one example each of when an auditor might render an unmodified opinion and include an emphasis-of-matter paragraph and an other-matter paragraph. What is the value of such paragraphs in the audit report?arrow_forwardThe auditor should summarize the overall audit strategy that contains the key decisions about the scope, timing, and conduct of a. Audit plan O b. Note. C ..Review working papers d. Audit memo bookarrow_forward
- Generally accepted auditing standards (the performance principle) require auditors to gather sufficient appropriate evidence on which to base an opinion.Required:a. Briefly define the characteristics “sufficient” and “appropriate” as they relate to audit evidence.b. What are relevance and reliability (as they relate to audit evidence)? How do these concepts relate to the auditors’ requirement to gather sufficient appropriate evidence?c. How does the source of evidence affect its reliability?d. How does the effectiveness of the entity’s internal control affect the sufficiency and appropriateness of evidence gathered by auditors?arrow_forward2. In the element of audit findings, this refers to what the auditor discovered as a result of applying auditing procedures. Group of answer choices Condition Findings Cause Effectarrow_forwardWhere the auditor should summarize the overall audit strategy that contains the key decisions about the scope, timing and conduct of the audit a. Audit plan b. Memorandum c. Audit working papers d. Audit Note bookarrow_forward
- List the seven parts of a standard unqualified audit report and explain the meaning of each part. How do the parts compare with those found in a qualified report?arrow_forwardWhich of the following is correct about ISA 520? O a. ISA 520 deals with the procedures after an audit to help in forming an overall conclusion on the financial statements O b. ISA 520 deals with the engagement of an audit team members O c. ISA 520 deals with the procedures after an audit to help in forming an overall audit strategy O d. ISA 520 deals with the procedures in the beginning of an audit to help in forming an overall conclusion on the financial statementsarrow_forwardWhich part (paragraph) of the audit report appears first, according to new (ISA) auditing standards A. Opinion paragraph B. Scope paragraph C. Basis of opinion D. Key audit mattersarrow_forward
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