EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Question
Chapter 19, Problem 19.20MCQ
To determine
Concept Introduction:
Auditor independence is very important for the quality of the audit. Impairment of the audit independence means to affect the audit independence by some illegal means. Some clients affect the audit reporting by some reference or influence of power etc. Impairment of the audit work will affect the quality of audit reporting.
To choose: The correct statement regarding the impairment of the audit report
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Scope Limitations. Situations in which auditors are unable to obtain sufficient appropriateevidence necessary to support their opinion on the entity’s financial statements are referredto as scope limitations.Required:a. Distinguish between client-imposed scope limitations and circumstance-imposed scopelimitations. Which of these is generally of more concern to auditors?b. Why do scope limitations impact the auditors’ ability to express an opinion on the entity’sfinancial statements?c. Assume that a circumstance-imposed scope limitation prevented auditors from performing procedures they considered to be necessary. How would each of the following factors independently influence the opinion expressed on the entity’s financial statements?1. The account balances affected by the scope limitation are not material to the entity’sfinancial position, results of operations, or cash flows.2. The account balances affected by the scope limitation are material to the entity’sfinancial position,…
Describe the action that an auditor should take if an attorney refuses to give information that is within the attorney's authority and may have a direct impact on the financial statements' fair presentation.
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Chapter 19 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 19 - Prob. 19.1RQCh. 19 - Prob. 19.2RQCh. 19 - Prob. 19.3RQCh. 19 - Prob. 19.4RQCh. 19 - Prob. 19.5RQCh. 19 - Prob. 19.6RQCh. 19 - Prob. 19.7RQCh. 19 - Prob. 19.8RQCh. 19 - Prob. 19.9RQCh. 19 - Prob. 19.10RQ
Ch. 19 - Prob. 19.11RQCh. 19 - Prob. 19.12RQCh. 19 - Prob. 19.13RQCh. 19 - Prob. 19.14MCQCh. 19 - Prob. 19.15MCQCh. 19 - Prob. 19.16MCQCh. 19 - Prob. 19.17MCQCh. 19 - Prob. 19.18MCQCh. 19 - Prob. 19.19MCQCh. 19 - Prob. 19.20MCQCh. 19 - Prob. 19.21MCQCh. 19 - Prob. 19.22MCQCh. 19 - Prob. 19.23MCQCh. 19 - Prob. 19.24MCQCh. 19 - Prob. 19.25MCQCh. 19 - Prob. 19.26MCQCh. 19 - Prob. 19.27PCh. 19 - Prob. 19.28PCh. 19 - Prob. 19.29PCh. 19 - Prob. 19.30PCh. 19 - Prob. 19.31P
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- In an auditor's report the absence of any reference to a material uncertainty about the entity’s ability to continue as a going concern can be viewed as a guarantee as to the entity’s ability to continue as a going concern. true falsearrow_forwardIf it is necessary to amend other information in a document containing audited financial statements and the entity refuses to make the amendment, the auditor would consider issuing * A. Qualified or disclaimer of opinion B. Qualified or adverse opinion C. Unmodified opinion with no additional statement pertaining to the other information opinion D. Unmodified opinion with a statement pertaining to the other informationarrow_forwardUrgentarrow_forward
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- Which one of the following is other indicator or events or conditions that may cast significant doubt continue as a going concern? the entity's ability If the auditor found misstatements in financial statements resulting from fraud, the auditor encounters exceptional circumstances that bring into question his ability to continue performing the audit. the auditor shall : Ask the management for his withdrawal. Determine the professional and legal responsibilities applicable in the circumstances. Withdraw from the engagement immediately. Report to audit team regarding withdrawal. If the auditor identify and assess the risk of material misstatement due to fraud or error relating entity's related activities auditor shall: 1. Inquiry with management and others within the entity. Auditing ENarrow_forwardIf the auditor concludes that management’s use of the going concern basis of accounting is appropriate in the circumstances but a material uncertainty exists, the auditor shall: i) Determine whether financial statements disclose clearly that there is a material uncertainty ii) Determine whether the financial statements adequately disclose the principal conditions that may cast significant doubt on the entity’s ability to continue as a going concern. iii) Determine whether the financial statements adequately disclose management’s plans to deal with these events or conditions. A. i) and ii) B. i) and iii) C. Only i) D. i) , ii) and iii)arrow_forwardWhich one of the following is NOT a duty of the auditor? Duty to report on any violation of law Duty to report to the members Duty to report to the company’s bankers Duty to sign the audit reportarrow_forward
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