Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 22, Problem 18.2MCQ
To determine
Indicate the person from whom an auditor can obtain written confirmation regarding debenture transactions during an audit of a publicly held company.
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Students have asked these similar questions
Which of the following statements about the auditor's responsibilities in public company audits is true as covered by the PCAOB?
A. The auditor issues an opinion on the financial statements and management issues the opinion on internal control over financial reporting.
B. The auditor issues an opinion on the financial statements only if internal control over financial reporting is found to be effective.
C. The auditor issues an opinion on the financial statements; if those are found to be fairly stated, the auditor proceeds to issue an opinion on internal control over financial reporting.
D. The auditor issues opinions on the financial statements and internal control over financial reporting.
Do the auditors have to report on (a) the audited financial statements and (b) any other information that is required by law?
Which of the following are rights of the auditors?
a) The right to all information and explanations (from management) necessary for the proper conduct of the audit.
b) The right to receive notice of all meetings of the shareholders (such as the annual general meeting) and to attend those meetings.
c) The right to speak at shareholders’ meetings on matters affecting the audit or the auditor.
d) The right to visit the branches of the audit firm and right to access all accounting books and records.
e) The right to examine and evaluate financial and information systems, recommending controls to ensure system reliability and data integrity
f) The right to review data about material assets, net worth, liabilities, capital stock, surplus, income and expenditures
Only e) and f)
Only d) , e) and f)
Only a) , b) and c)
Only a) , b) ,c) and d)
Chapter 22 Solutions
Auditing And Assurance Services
Ch. 22 - List four examples of interest-bearing liability...Ch. 22 - Prob. 2RQCh. 22 - Prob. 3RQCh. 22 - Prob. 4RQCh. 22 - Prob. 5RQCh. 22 - Distinguish between (a) tests of controls and...Ch. 22 - Prob. 7RQCh. 22 - Prob. 8RQCh. 22 - Prob. 9RQCh. 22 - Prob. 10RQ
Ch. 22 - Prob. 11RQCh. 22 - Prob. 12RQCh. 22 - Prob. 13RQCh. 22 - Prob. 14RQCh. 22 - Prob. 15RQCh. 22 - Explain the relationship between the audit of...Ch. 22 - Prob. 17.1MCQCh. 22 - Prob. 17.2MCQCh. 22 - Prob. 17.3MCQCh. 22 - Prob. 18.1MCQCh. 22 - Prob. 18.2MCQCh. 22 - Prob. 18.3MCQCh. 22 - Prob. 19.1MCQCh. 22 - Prob. 19.2MCQCh. 22 - Prob. 19.3MCQCh. 22 - Prob. 20DQPCh. 22 - Prob. 21DQPCh. 22 - Prob. 22DQPCh. 22 - Prob. 23DQPCh. 22 - Prob. 24DQPCh. 22 - Prob. 25DQPCh. 22 - Prob. 26DQPCh. 22 - Prob. 27DQPCh. 22 - Prob. 28DQPCh. 22 - Prob. 29DQPCh. 22 - Prob. 30DQP
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Similar questions
- Which of the following are rights of auditors? I. To access all accounting books and records at all times II. To insist that financial statements are corrected if they do not give a true and fair view III. To receive notice of all board meetings on matters of concern to the auditor IV. To attend and be heard at all board meetings on matters of concern to the auditor V. To receive all information and explanations from management necessary for the proper conduct of the auditarrow_forwardIn the normal course of performing their responsibilities,auditors often conduct audits or reviews of the following:1. Federal income tax returns of an officer of the corporation to determine whether heor she has included all taxable income in his or her return.2. Financial statements for use by stockholders when there is an internal audit staff.3. A bond indenture agreement to make sure a company is following all requirementsof the contract.4. Internal controls at a casino to ensure the casino is in compliance with federal andstate regulations.5. Computer operations of a corporation to evaluate whether the computer center isbeing operated as efficiently as possible.6. Annual statements for the use of management.7. Operations of the IRS to determine whether the internal revenue agents are usingtheir time efficiently in conducting audits.8. Statements for bankers and other creditors when the client is too small to have anaudit staff.9. Financial statements of a branch of the federal…arrow_forwardThe standard unqualified opinion based on the audit of a public company's financial statements includes a. A discussion of Key Audit Matters if KAMs are discovered. b. A reference to Key Audit Matters if no KAMs are discovered. c. A statement that the CPA firm is registered with the AICPA. d. An indication of how long the firm has served as the company's auditors. e. A Basis for Opinion section preceding the Opinion of Financial Statements section.arrow_forward
- “The maintenance of auditor independence is vital to the credibility of the audit in the minds of the users of financial statements.” 1. State the provisions of the companies Act, 2019 (Act 992) which strengthen the independence of the auditor. 2. Suggest how the independence of the auditor might be further strengthened and improved.arrow_forwardThe primary reason auditors request responses to attorney letters is to provide auditorsa. The probable outcome of asserted claims and pending or threatened litigation.b. Corroboration of the information furnished by management about litigation, claims, and assessments.c. The attorney’s opinions of the client’s historical experiences in recent similar litigation.d. A description and evaluation of litigation, claims, and assessments that existed at the date of the financial statements.arrow_forwardDuring an audit of an entity’s stockholders’ equity accounts, the auditor determines whether there are restrictions on retained earnings resulting from loans, agreements, or state law. This audit procedure most likely is intended to verify management’s assertion ofa. Existence or occurrence.b. Completeness.c. Valuation or allocation.d. Presentation and disclosure.arrow_forward
- When an auditor uses the work of an expert, who has the responsibility for arriving at an overall conclusion regarding the fair presentation of a client's financial statements? a) the auditor b) the expert c) the client's management d) the client's audit committeearrow_forwardKPMG is the auditor for an IESBA public interest entity audit client. Which non-audit service is permitted for this type of audit client? Designing a technology system for financial reporting that generates information significant to the accounting records. Preparing annual tax returns subject to review by the client and appropriate assessment of threats and safeguards. Valuations that might create a self-review threat. Tax calculations for the purpose of preparing the accounting entries included in the financial statements on which the firm will express an opinion.arrow_forwardWhich of the following is the primary responsibility of auditor? a. To ensure compliance with laws and regulations applicable on the entity b. To design, implement and maintain system of internal control. c. To ensure that financial statement comply with applicable financial reporting framework d. To express an opinion on true and fair view of the financial statements.arrow_forward
- In what document would the following statement most likely appear. It is our opinion that the possible liability to the company from this proceeding is nominal in amount. Lawyer's response to audit inquiry letter. Audit committees communication to the auditor. Auditor's engagement letter. Audit inquiry to legal counsel.arrow_forwardThe CPA states in his independent auditor’s report that he has examined the* a. Financial statements of the client b. Future viability of the business enterprise c. Compliance of the client with laws and regulations d. Effectiveness of the client’s internal controlarrow_forwardThe primary purpose for obtaining an understanding of the entity’s environment (including its internal control) in a financial statement audit isa. To determine the nature, timing, and extent of substantive procedures to be performed.b. To make consulting suggestions to the entity’s management.c. To obtain direct sufficient appropriate audit evidence to afford a reasonable basis for an opinion on the financial statements.d. To determine whether the entity has changed any accounting principlesarrow_forward
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