AUDITING & ASSURANCE SERVICES CONNECT AC
10th Edition
ISBN: 9781259292057
Author: MESSIER
Publisher: MCG
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Question
Chapter 21, Problem 21.22MCQ
To determine
Concept Introduction:
The financial statements to be reviewed by the accountant should be accompanied by a report stating various elements like title, addressee, introductory paragraph, management responsibility, result of engagement, and signature of accountant and date of accountant’s report.
To choose: The correct option for the financial statements reviewed by an accountant.
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Students have asked these similar questions
Before issuing a report on the compilation of
financial statements of a non-public entity,
the accountant should:
a. Apply analytical procedures to selected
financial data to discover any material
misstatements.
b. Corroborate at least a sample of the
assertions management has embodied in the
financial
statements.
c. Inquire of the client's personnel whether
the financial statements omit substantially all
disclosures.
d. Read the financial statements to consider
whether the financial statements are free
from obvious material errors.
The external auditor:
Group of answer choices
Tests the underlying transactions that form the basis of the financial statements. In this way, they may state that these statements show a true and fair view.
Tests the underlying transactions that form the basis of the financial statements. In this way, they may ensure that these statements show a true and fair view.
Tests the underlying transactions that form the basis of the financial statements. In this way, they may form an opinion on whether or not these statements show a true view.
Tests the underlying transactions that form the basis of the financial statements. In this way, they may form an opinion on whether or not these statements show a true and fair view.
Explain Answer
Chapter 21 Solutions
AUDITING & ASSURANCE SERVICES CONNECT AC
Ch. 21 - Prob. 21.1RQCh. 21 - Prob. 21.2RQCh. 21 - Prob. 21.3RQCh. 21 - Prob. 21.4RQCh. 21 - Prob. 21.5RQCh. 21 - Prob. 21.6RQCh. 21 - Prob. 21.7RQCh. 21 - Prob. 21.8RQCh. 21 - Prob. 21.9RQCh. 21 - Prob. 21.10RQ
Ch. 21 - Prob. 21.11RQCh. 21 - Prob. 21.12RQCh. 21 - Prob. 21.13RQCh. 21 - Prob. 21.14RQCh. 21 - Prob. 21.15MCQCh. 21 - Prob. 21.16MCQCh. 21 - Prob. 21.17MCQCh. 21 - Prob. 21.18MCQCh. 21 - Prob. 21.19MCQCh. 21 - Prob. 21.20MCQCh. 21 - Prob. 21.21MCQCh. 21 - Prob. 21.22MCQCh. 21 - Prob. 21.23MCQCh. 21 - Prob. 21.24MCQCh. 21 - Prob. 21.25MCQCh. 21 - Prob. 21.26MCQCh. 21 - Prob. 21.27MCQCh. 21 - Prob. 21.28MCQCh. 21 - Prob. 21.29MCQCh. 21 - Prob. 21.30PCh. 21 - Prob. 21.31PCh. 21 - Prob. 21.32PCh. 21 - Prob. 21.33PCh. 21 - Prob. 21.34PCh. 21 - Prob. 21.35PCh. 21 - Prob. 21.36P
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Similar questions
- KA In order to form an opinion, the auditor shall conclude as to whether the auditor has obtained reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. The conclusion should consider and take into account: answer the below in essay form The evaluation of the financial statements as a whole should include what other significant elements and requirements are needed to formulate an auditor's report.arrow_forwardThe Accountant Should?arrow_forwardall of the following are the responsibilities of the auditor except : Select one: a. adopting sound accounting policies, maintaining adequate internal control, and making fair representations in the financial statements b. making certain that all the assertions in the financial statement are correct c. report on the financial statements, and communicate as required by auditing standards, in accordance with the auditor’s findings d. obtain reasonable assurance about whether the financial statements as a whole are free from material misstatementarrow_forward
- Which statement is incorrect regarding the external auditor's consideration of the work of internal auditing? а. During the course of planning the audit, the external auditor should perform a preliminary assessment of the internal audit function when it appears that internal auditing is relevant to the external audit of the financial statements in specific audit areas. b. The external auditor should consider the activities of internal auditing and their effect, if any, on external audit procedures. C. When the external auditor intends to use specific work of internal auditing, the external auditor need not evaluate and test that work to confirm its adequacy for the external auditor's purposes. d. The external auditor should obtain a sufficient understanding of internal audit activities to assist in planning the audit and developing an effective audit approach.arrow_forwardWhich of the following best describes the role of analytical procedures near the end of theaudit engagement?a. To identify possible deficiencies in the client’s internal control over financial reporting.b. To identify accounts that appear to be misstated with the intention of planning thenature, timing, and extent of other substantive procedures.c. To gather evidence to support one or more assertion(s) related to the account balance orclass of transactions.d. To provide an overall review of the financial information and assessment of the adequacy of evidence gathered during the audit engagement.arrow_forwardThe auditor's responsibility in relation to the assessment of going concern basis of accounting is to: a.Conclude on whether a material uncertainty exists about the entity's ability to continue as a going concern b.All of the choices are correct c.Obtain sufficient appropriate audit evidence regarding appropriateness of use of going concern basis of accounting in the preparation of the financial statements d.Conclude on the appropriateness of management's use of the going concern basis of accounting in the preparation of the financial statements, based on the evidence obtainedarrow_forward
- Analytical procedures are an important part of the audit process and consist of the evaluation of financial information by the study of plausible relationships among financial and nonfinancial data. Analytical procedures may be done during planning, as a substantive test, or as a part of the overall review of an audit. The following are various statements regarding the use of analytical procedures: Should focus on enhancing the auditor’s understanding of the client’s business and the transactions and events that have occurred since the last audit date Should focus on identifying areas that may represent specific risks relevant to the audit Require documentation in the working papers of the auditor’s expectation of the ratio or account balance Generally use data aggregated at a lower level than the other stages Should include reading the financial statements and notes to consider the adequacy of evidence gathered Not required during this stage Involve reconciliation of…arrow_forwardQuestion: Before issuing a report on the compilation of financial statements of a non- public entity, the accountant should: a. Apply analytical procedures to selected financial data to discover any material misstatements. b. Corroborate at least a sample of the assertions management has embodied financial in the statements. c. Inquire of the client's personnel whether the financial statements omit substantially all disclosures. d. Read the financial statements to consider whether the financial statements are free from obvious material errors.arrow_forwardJustify the auditor's duty to evaluate conformity with applicable rules and regulations. How does this obligation vary between rules and regulations that have a direct impact on financial statements and those that do not?arrow_forward
- Which of the following statements is NOT correct about materiality?Select one: a. Auditor’s consideration of materiality is influenced by the auditor’s perception of the needs of an informed decision maker who will rely on the financial statements b. Materiality is a relative concept c. Materiality judgments involve both quantitative and qualitative judgments d. At the planning state, the auditor considers materiality at the financial statement level onlyarrow_forwardIn including an audit of financial statements , the overall objectives are the following, EXCEPT A. To conduct a critical, detailed and systematic examination of all the account balances in the financial statements, as the related document records , procedures and controls B. To obtain reasonable assurance whether financial statement as a whole are free from material misstatement whether du to fraud or error C. To report on the financial statements and communicate as required by the PSAs in accordance with the auditor’s findings D. To enable the auditor to express an opinion on whether the financial statements are prepared, in all material respects in accordance with the applicable financial reporting frameworkarrow_forwardState the objectives of the ordinary audit of financial statements. In general terms, how do auditors meet those objectives?arrow_forward
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