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 19.25MCQ
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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One of an accounting firm’s basic objectives is to provide professional services that conform to professional standards. Reasonable assurance of achieving this objective can be obtained by followinga. Generally accepted auditing standards.b. Standards within a system of quality control.c. Generally accepted accounting principles.d. International auditing standards.
The standards are divided into attribute, performance and implementation guidance. Classify the following standards according to attribute and performance standards:A) Chief Audit Executive Roles Beyond Internal Auditing.B) Engagement Planning.C) Continuing Professional Development.D) Requirements of the Quality Assurance and Improvement Program.E) External Service Provider and Organizational Responsibility for Internal Auditing.F) Due Professional Care
What are the advantages of a CPA over members of other professions in rendering management advisory services or consulting work? Explain.
Enumerate the practice standards in MAS and explain each.
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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- Identify how each of the following statements relates to the performance principle by considering which element(s) of the principle are related to that statement. (A statement may be related to more than one element.) Use the following elements in providing your response: Reasonable assurance • Planning and supervision • Materiality ⚫ Risk assessment • Audit evidence a. Evaluating the effectiveness of the client's internal control in preventing or detecting misstatements. b. Obtaining an understanding of the client's business and industry. c. Acknowledging that the risk of failing to detect a material misstatement cannot be reduced to zero. d. Obtaining confirmations from the client's customers as to the ending balances in accounts receivable. e. Preparing a written audit plan. f. Designing audit procedures to identify misstatements that would have a significant effect on financial statement users' decisions. g. Considering the likelihood that the account balance contains a material…arrow_forwardA primary purpose for establishing a code of conduct within a professional organization is to: a Reduce the likelihood that members of the profession will be sued for substandard work. b Ensure that all members of the profession perform at approximately the same level of competence. c Demonstrate acceptance of responsibility to the interests of those served by the profession. d Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organizationarrow_forwardAnalyze the ethical challenges faced by accountants in their professional practice, and identify measures that can be taken to address these challenges.arrow_forward
- Competence as a certified public accountant includes all of the following except: A. Having the technical qualifications to perform an engagement B. Possessing the ability to supervise and t evaluate the quality of staff work C. Guaranteeing the accuracy of the work performed D. Consulting others if additional technical information is neededarrow_forwardRegistered external auditors must have the knowledge and skills to perform their function and should be honest. There are also a number of other attributes or fundamental principles of ethical behavior, which all auditors should have and these are identified in professional external auditing standards issued by IRBA as follows:· integrity· objectivity· professional competence and due care· confidentiality· professional behaviorThe following actions taken by registered external auditors are example of non-compliance with one or more principles listed above; Question 1 Mark Proctor, a registered auditor arranged with some of his clients to pay the fees that he charged for auditservices, in cash. For clients who agreed to do so, no VAT was charged and a discount was given.arrow_forwardRegistered external auditors must have the knowledge and skills to perform their function and should be honest. There are also a number of other attributes or fundamental principles of ethical behavior, which all auditors should have and these are identified in professional external auditing standards issued by IRBA as follows:· integrity· objectivity· professional competence and due care· confidentiality· professional behaviorThe following actions taken by registered external auditors are example of non-compliance with one or more principles listed above; Question 3 Clark Parker the registered auditor in charge of the audit of Datatec Ltd, made racist comments concerningthe client’s staff during the audit planning session.arrow_forward
- Under AICPA rules, which of the following services would generally be permitted to be provided to an audit client provided the general requirements are met? Firm accepting responsibility for monitoring client's IT controls (e.g., through automated tool) Providing advice and recommendations related to the application of an accounting standard Staff augmentation services Leading or supervising the audit client's accounting standards implementation teamarrow_forward1. Professional competence, due professional care, planning and supervision, and sufficient relevant data are general standards for MAS practice, including Role of MAS practitioner c. Association with forecasts Understanding with client d. Communication of results 2. Which of the following is not one of the steps in MAS engagement? Implementation c. Analysis Informal meeting with client d. Design 3. A certified public accountant’s scope of mgt. services is broad and covers all of the following except audit engagement c. Re-engineering job computerization engagements d. Change mgt. engagements 4. Which of the following is not an area in MAS practice Conducting special studies Reviewing and suggesting improvement of policies , procedures, systems and methods, etc. Marketing and public relations work Introducing new ideas, concepts…arrow_forwardA persuasive characteristics of CPA’s role in mgt. consulting services engagements is that of being a (an) independent practitioner c. objective advisor confidential reviewer d computer specialist According to profession’s standards, which of the following would not be considered consulting services requirements for CPAs? Supervising staff who are assigned to the engagement. Maintaining independence from the client. Complying with statements on standards for consulting services. Obtaining an understanding of the nature, scope and limitations of the engagements. According to professions’ standards, which of the following would be considered consulting services? Advisory services Implementing services Product services Yes Yes Yes Yes Yes No Yes…arrow_forward
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