Evaluate the given statement about the audit of companies on an annual basis.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 19, Problem 1RQ

To determine

Evaluate the given statement about the audit of companies on an annual basis.

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statements of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

All companies should be audited annually:

This is not the correct statement. The annual audit cannot be conducted by every entity. The small companies might face the expenses if the audit is made on an annual basis. The audit can be done annually only if the expense incurred for getting the financial statements audited equals the benefits arrived out of it. The small entities opt to get their financial statements prepared and reviewed by the Certified Public Accountants. Thus, it cannot be said that all companies have to be audited annually. The large companies can adjust to get their financial statements audited.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Find more about the audit requirements in Oman, including which companies/organizations are required to have yearly audits and which are not.

Should auditors give assurance on the MD&A or other information in annual reports such as Non-GAAP, performance indicators, or sustainability disclosures?

Should auditors provide some level of assurance on the MD&A or other information in annual reports like Non-GAAP, performance indicators or sustainability disclosures?

Answer 2

Question

Chapter 19, Problem 1RQ

To determine

Evaluate the given statement about the audit of companies on an annual basis.

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statements of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

All companies should be audited annually:

This is not the correct statement. The annual audit cannot be conducted by every entity. The small companies might face the expenses if the audit is made on an annual basis. The audit can be done annually only if the expense incurred for getting the financial statements audited equals the benefits arrived out of it. The small entities opt to get their financial statements prepared and reviewed by the Certified Public Accountants. Thus, it cannot be said that all companies have to be audited annually. The large companies can adjust to get their financial statements audited.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 19, Problem 1RQ

To determine

Evaluate the given statement about the audit of companies on an annual basis.

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statements of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

All companies should be audited annually:

This is not the correct statement. The annual audit cannot be conducted by every entity. The small companies might face the expenses if the audit is made on an annual basis. The audit can be done annually only if the expense incurred for getting the financial statements audited equals the benefits arrived out of it. The small entities opt to get their financial statements prepared and reviewed by the Certified Public Accountants. Thus, it cannot be said that all companies have to be audited annually. The large companies can adjust to get their financial statements audited.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 19, Problem 1RQ

To determine

Evaluate the given statement about the audit of companies on an annual basis.

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statements of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

All companies should be audited annually:

This is not the correct statement. The annual audit cannot be conducted by every entity. The small companies might face the expenses if the audit is made on an annual basis. The audit can be done annually only if the expense incurred for getting the financial statements audited equals the benefits arrived out of it. The small entities opt to get their financial statements prepared and reviewed by the Certified Public Accountants. Thus, it cannot be said that all companies have to be audited annually. The large companies can adjust to get their financial statements audited.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 19, Problem 1RQ

To determine

Evaluate the given statement about the audit of companies on an annual basis.

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statements of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

All companies should be audited annually:

This is not the correct statement. The annual audit cannot be conducted by every entity. The small companies might face the expenses if the audit is made on an annual basis. The audit can be done annually only if the expense incurred for getting the financial statements audited equals the benefits arrived out of it. The small entities opt to get their financial statements prepared and reviewed by the Certified Public Accountants. Thus, it cannot be said that all companies have to be audited annually. The large companies can adjust to get their financial statements audited.

Answer 6

Chapter 19, Problem 1RQ

To determine

Evaluate the given statement about the audit of companies on an annual basis.

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statements of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

All companies should be audited annually:

This is not the correct statement. The annual audit cannot be conducted by every entity. The small companies might face the expenses if the audit is made on an annual basis. The audit can be done annually only if the expense incurred for getting the financial statements audited equals the benefits arrived out of it. The small entities opt to get their financial statements prepared and reviewed by the Certified Public Accountants. Thus, it cannot be said that all companies have to be audited annually. The large companies can adjust to get their financial statements audited.

Answer 7

Chapter 19, Problem 1RQ

To determine

Evaluate the given statement about the audit of companies on an annual basis.

Answer 8

Expert Solution & Answer

Explanation of Solution

Auditing:

Auditing is a process of examination of the financial statements of the company to check the fair and accurate representation of the financial data. Auditing includes the collection of evidence from all possible sources for the process of auditing. As it includes all possible sources, then it has the least risk of material misstatement.

All companies should be audited annually:

This is not the correct statement. The annual audit cannot be conducted by every entity. The small companies might face the expenses if the audit is made on an annual basis. The audit can be done annually only if the expense incurred for getting the financial statements audited equals the benefits arrived out of it. The small entities opt to get their financial statements prepared and reviewed by the Certified Public Accountants. Thus, it cannot be said that all companies have to be audited annually. The large companies can adjust to get their financial statements audited.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 19 - Prob. 1RQ Ch. 19 - Prob. 2RQ Ch. 19 - Prob. 3RQ Ch. 19 - Prob. 4RQ Ch. 19 - Prob. 5RQ Ch. 19 - Prob. 6RQ Ch. 19 - Prob. 7RQ Ch. 19 - Prob. 8RQ Ch. 19 - Prob. 9RQ Ch. 19 - Prob. 10RQ

Evaluate the given statement about the audit of companies on an annual basis.

Evaluate the given statement about the audit of companies on an annual basis.

Explanation of Solution

Want to see more full solutions like this?

Chapter 19 Solutions