Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 20.1MCQ
To determine
Identify the correct answer for the given statement.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Communicating Key Audit Matters in the audit report is :
A.
Additional communication to provide transparency in the auditor’s professional judgment,
B.
An assistance for financial statement users to better understand the entity and areas of significant management juudgments
C.
A substitute for disclosures in the financial statements that the applicable financial reporting framework requires management to make
D.
A separate additional opinion on individual matters
Seçimimi temizle
An External Auditor would have which of the following Obligations in the Financial Statement of the Organization?
Create the Financial Statement and Affix the signature
Monitor the Internal Control of the Organization and Add value through an Opinion
Evaluate Assertations based on the Evidence Gathered and Give an Opinion based on Such
Evaluate the reasonbleness of Assertions and Provide a Report without an Opinion
The form and content of audit engagement letters may vary for each client, but they would generally include reference to (choose all the items that apply to the previous statement): *-*
The absence of audit risk
Unrestricted access to whatever records
Financial reporting framework used
Objective of the audit
Form of any reports or other communication
Management's responsibility
Scope of the audit
Chapter 3 Solutions
Auditing and Assurance Services (16th Edition)
Ch. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 10RQ
Ch. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Distinguish between a report qualified due to a...Ch. 3 - Prob. 15RQCh. 3 - Prob. 16RQCh. 3 - Prob. 17RQCh. 3 - Prob. 18RQCh. 3 - Prob. 19RQCh. 3 - Prob. 20.1MCQCh. 3 - Prob. 20.2MCQCh. 3 - Prob. 20.3MCQCh. 3 - Prob. 21.1MCQCh. 3 - Prob. 21.2MCQCh. 3 - Prob. 21.3MCQCh. 3 - Prob. 22.1MCQCh. 3 - Prob. 22.2MCQCh. 3 - Prob. 22.3MCQCh. 3 - Prob. 23DQPCh. 3 - Prob. 24DQPCh. 3 - Prob. 25DQPCh. 3 - Prob. 26DQPCh. 3 - Prob. 27DQPCh. 3 - Prob. 28DQPCh. 3 - Prob. 29DQP
Knowledge Booster
Similar questions
- Which of the following is usually not part of an internal audit department’s audit charter?a. A commitment from management to ensure the independence of the internal auditdepartment.b. A definition of the scope of the audit department’s activities.c. The organizational structure of the internal audit department.d. The reporting requirements of the internal audit department.arrow_forwardhich of the following is usually not part of an internal audit department’s audit charter?a. A commitment from management to ensure the independence of the internal auditdepartment.b. A definition of the scope of the audit department’s activities.c. The organizational structure of the internal audit department.d. The reporting requirements of the internal audit departmentarrow_forwardWhich of the following statements is correct concerning an auditor's required communication with those charged with governance? 1. If matters are communicated in writing, the report is appropriate for general use. 2. This communication is required to occur before the auditor's report on the financial statements is issued. 3. If matters are communicated in writing, the report is required to be distributed to both those charged with governance and management. 4. This communication should include disagreements with management about significant audit adjustments, whether or not satisfactorily resolved. O 1 O 2 0 3 O 4arrow_forward
- Which of the following is required documentation in an audit in accordance with generally acceptedauditing standards? Group of answer choices a. A flowchart or narrative of the accounting system describing the recording and classification of transactions for financial reporting. b. All major stakeholder groups. c. An internal control questionnaire identifying controls that assure specific objectives will be achieved. d. The overall audit strategy and audit plan.arrow_forwardWhich of the following aspects are required to be included in the basis for opinion section in the auditor's report? O a. Statement that an auditor is dependent of the entity in accordance with the relevant ethical requirements relating to an audit O b. Statement that the audit was conducted in accordance with Standards on Auditing OC. Statement that the financial statements have been audited O d. Statement whether the management (client) believes that the audit evidence an auditor has obtained is sufficient and appropriate to provide a basis for the auditor's opinionarrow_forwardUnder preconditions of an audit, the management shall provide the auditor with the following, except: Group of answer choices b. Additional information that the auditor may request from management for the purpose of the audit d. All the above are concerns that management need to provide c. Unrestricted access to persons within the entity from whom the auditor determines it necessary to obtain audit evidence. a. Access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;arrow_forward
- Which of the following is not a part of opinion section of the auditor's report? O a. Identify the title of each statement comprising the financial statements O b. State that the financial statements have been audited as per set standards O C. Auditors signature and address O d. Identify the entity whose financial statements have been audited Coa ENCarrow_forwardThe Responsibilities principle underlying AICPA auditing standards includes arequirement that(1) field work be adequately planned and supervised.(2) the auditor’s report state whether or not the financial statements conform togenerally accepted accounting principles.(3) professional judgment be exercised by the auditor.(4) informative disclosures in the financial statements be reasonably adequate.arrow_forwardWhich 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_forward
- He Select the necessary words from the list of possibilities to complete the following statements. Statements Answer The purpose of an audit conducted in accordance with generally accepted auditing standards is to provide financial statement users with an opinion by the auditor on 1. whether the financial statements are presented fairly, in all material respects, in accordance with the applicable The FASB 2. is the source of authoritative GAAP to be applied by nongovernmental entities. 3. International auditing standards are issued by the An attestation engagement includes a report on subject matter, or on an 4. about subject matter. CPA firms should establish assurance that their services adhere to firm and professional standards. policies and procedures to providearrow_forwardWhich of the following engagements is most likely to be considered an operational audit? The auditor determines whether the organization is following provisions of laws and regulations. The auditor examines information presented in an entity’s financial statements to determine whether the financial statements are presented fairly in accordance with the applicable financial reporting framework. The auditor evaluates the organization’s efficiency in processing payments. The auditor assists the client in preparation of financial statements.arrow_forwardWhat are key audit matters? How do these affect the format of the audit report? b) Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart iswriting a report for his audit partner based on these results and will be attending a meetingtomorrow with the partner and representatives of the company to discuss them. The issue will bewhether the financial report should be amended, or additional notes included for thesesubsequent events.Many of the items are not material and Stewart will recommend that no action be taken withrespect to these. However, there are several items that Stewart believes are material and shouldbe discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August. (b) The share issue is to fund the purchase of a 60 per cent stake in another company. Thenegotiations are in the final stages and although the contract is not yet signed it will be signedby 15 August. (c) A writ was…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning