Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 3, Problem 29DQP
a.
To determine
Explain the manner in which the given information compares to the information in the Basis for Opinion and Auditor’s Responsibility sections in the standard unmodified opinion audit report.
b.
To determine
Explain the manner in which the given information compares to the information in the Basis for Opinion sections in the standard unmodified opinion audit report.
c.
To determine
Identify three audit reports that provide greater auditor communications to users of the financial statements.
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Which of the following best describes the general contents of the introductory paragraph of the auditors’ report?a. A description of an audit examination, including the fact that the audit was conducted under standards established by the PCAOB.b. The auditors’ conclusion with respect to the fairness of the entity’s financial statements.c. Statements identifying the responsibility of auditors and management in the financial reporting process.d. The auditors’ conclusion with respect to the effectiveness of the entity’s internal control over financial reporting.
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.
The Sarbanes-Oxley Act achieved all of the following except Select one:
a. Limits the non-audit services an independent auditor may provide to a registrant.
b. Requires regular inspection of audit engagements.
c. Established the PCAOB.
d. Identifies the FASB as the official source of GAAP for SEC filings.
Chapter 3 Solutions
Auditing And Assurance Services
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 - Prob. 14RQCh. 3 - Distinguish between a report qualified due to a...Ch. 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. 28DQPCh. 3 - Prob. 29DQP
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- Which of the following statements is not true with respect to the responsibility for establishing auditing standards? Multiple Choice The PCAOB issues auditing standards for the audit of issuers, subject to SEC approval. Standards issued by the Auditing Standards Board after 2003 apply to the audits of both issuers and nonissuers. The Auditing Standards Board currently issues auditing standards for the audit of nonissuers. Prior to the Sarbanes-Oxley Act, the Auditing Standards Board issued auditing standards for the audits of both issuers aarrow_forwardThe preparation of audit documentation is an integral part of an auditor’s examination of financial statements. On a recurring engagement, auditors review the audit plans and audit documentation from the prior audit while planning the current audit to determine their usefulness for the current-year work.Required:a. (1) What are the purposes or functions of audit documentation? (2) What records may be included in audit documentation?b. What factors affect the auditors’ judgment of the type and content of the audit documentation for a particular engagement?c. What should be included in audit documentation to support auditors’ compliance with generally accepted auditing standards?d. How can auditors make the most effective use of the prior-year audit plans in a recurring audit?arrow_forward"Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters." The preceding statement may indicate that * a. The audit was performed on consolidated financial statements b.The auditor's opinion on the financial statements is unmodified c. The audit was performed on the financial statements of a listed entity d. There are no key audit matters noted by the auditorarrow_forward
- Select the necessary words from the list of possibilities to complete the following statements: assertion, codification, financial reporting framework, generally accepted accounting principles, International auditing and assurance standards board, interpretations, professional skepticism, quality control, shareholders, and statements on auditing standards Statements Answer 1. 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 whether the financial statements are presented fairly, in all material respects, in accordance with the applicable __________. 2. The serially numbered pronouncements issued by the Auditing Standards Board of the AICPA as generally accepted auditing standards are known as __________. 3. Investors need to compare financial statements of different companies. The standards most frequently followed to prepare…arrow_forwardClassify each of the following issues according to whether they will be (1) included in written representations in all audits, (2) included in writtenrepresentations in audits of public entities (under PCAOB standards), or (3) not included in written representations:a. Management acknowledgment of its responsibility for the fairness of the financial statements in accordance with U.S. GAAP.b. A list of pending or threatened litigation, claims, or assessments currently outstanding against the client.c. A description of recommendations that allow the client to improve the efficiency and effectiveness of its operations.d. Availability of all financial records and related data.e. Information related to the presentation and disclosure of items within the financial statements.f. Disclosure of all significant deficiencies and material weaknesses in internal control.g. Information concerning fraud involving management and employees who have significant roles in internal control.h. Auditors’…arrow_forwardExplain the content of each section of the AICPA audit report. Evaluate the importance of each section with respect to the users of financial reports.arrow_forward
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