Auditing & Assurance Services: A Systematic Approach (Irwin Accounting)
10th Edition
ISBN: 9780077732509
Author: William F Messier Jr, Steven M. Glover Associate Professor, Douglas F. Prawitt Associate Professor
Publisher: McGraw-Hill Education
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Question
Chapter 19, Problem 19.24MCQ
To determine
Concept Introduction:
Auditing is an independent examination of financial statements. The set of financial statements includes
To choose: The person/ entity to whom the auditor should not disclose the confidential information of entity.
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21)An audit engagement letter
A.May not be prepared each period for a recurring audit engagement
B.Is prepared for the benefit of the audit, audit client and general public
C.Shall include specific audit procedures to be performed by the auditor
D.Is usually sent by auditor to the client upon the commencement of the audit
22)The engagement letter
A.Can affect legal responsibility to the client
B.Can be used to alter the auditor’s responsibilities under the standards on auditing
C.Is used only if it is an engagement, but has no effect for review or compilation services
D.Affects the CPA firm’s responsibility to external users of audited financial statements
23)Which of the following is notinvolved during pre-planning phase?
A.Obtaining information about client’s legal obligation
B.Obtaining an engagement letter
C.Selecting staff for engagement
D.Deciding whether to accept or continue an audit engagement
24)Which of the following matters is least likely to be discussed in an…
Prior to the acceptance of an audit engagement with a client who has terminated the services of the predecessor auditor, the CPA should
a. Contact the predecessor auditor without advising the prospective client and request a complete report of the circumstances leading to the termination with the understanding that all information disclosed will be kept confidential.
b. Accept the engagement without contacting the predecessor auditor since the CPA can include audit procedures to verify the reason given by the client for the termination.
c. Not communicate with the predecessor auditor because this would, in effect, be asking the auditor to violate the confidential relationship between auditor and client.
d. Advise the client of the intention to contact the predecessor auditor and request permission for the contact.
Which of the following is true if an auditor performs nonaudit services for a governmententity?a. The scope of the audit must be reduced so that the auditor does not audit the area forwhich the nonaudit work was performed.b. The auditor is prohibited from providing nonaudit work in areas directly related to theproduction of accounting information.c. The senior members of the government entity must document their review of the nonaudit service and indicate why it is appropriate for the auditors to perform this service.d. The scope of the audit cannot be reduced because the nonaudit work was performed bythe public accounting firm.
Chapter 19 Solutions
Auditing & Assurance Services: A Systematic Approach (Irwin Accounting)
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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- Ward is auditing an entity’s compliance with requirements governing a major federalfinancial assistance program in accordance with the Single Audit Act. Ward detectednoncompliance with requirements that have a material effect on the program. Ward’sreport on compliance should express(1) no assurance on the compliance tests.(2) reasonable assurance on the compliance tests.(3) a qualified or adverse opinion.(4) an adverse opinion or a disclaimer of opinionarrow_forwardWhich of the following is not a content of current audit file? Copies of communication with experts or other auditors Audit evidence obtained Memorandum and Article of Association Audit planning documentation Which one of the following is other indicator or events or conditions that may cast significant doubt on the entity's ability to continue as a going concern? Auditing and Cont... 10 EN , NE al Y-arrow_forwardIf the auditor identifies any events or conditions that may cast significant doubt on the entity's ability as a going concern, Auditor shall communicate the same to: Those charged with governance Government Employees Management Which one of the following fraudulent activities constitute misappropriation of assets? 个 Auditing and Cont..pdf 10:38 EN 是 小 al T-TI/-V/-oarrow_forward
- Which of the following information should a successor auditor obtain during the inquiry of the predecessor auditor before accepting engagement? i) Information about integrity of management ii) Disagreement with management concerning auditing procedures iii) Review of internal control system.iv) Organisation structure a) (i) and (ii) b) (ii) and (iii) c) (i) , (ii) and (iii) d) i) and (iii) The audit engagement letter, generally, should include a reference to each of the following except a)limitations of auditing b)responsibilities of management with respect to audit work c)expectation of receiving a written management representation letter. d)a description of the auditor’s method of sample selection. 3. An auditor who accepts an audit but does not possess the industry expertise of the business entity should a) engage…arrow_forwardDefine the obligations of auditors in the event that a client fails to comply with applicable laws or regulations.arrow_forwardAfter the audit report release date, auditors determine that an important auditing procedure was omitted. Which of the following initial courses of action is most appropriate?a. Perform the omitted procedure or an alternative procedure.b. Notify the board of directors and regulatory agencies that are currently relying on auditor’s reports.c. Determine whether the omitted procedure is important in supporting the auditor’s opinion on the entity’s financial statements.d. Engage another public accounting firm to conduct a quality assurance review.arrow_forward
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