Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 28CYBK
To determine
Concept introduction:
Auditing documentation:
Audit documentation is the recording of
To choose: the false statement.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The audit report provides reasonable assurance that thefinancial statements are free from material misstatements. The auditorassesses materiality in planning the audit to ensure that sufficientappropriate audit work is performed to detect material misstatements.However, the auditor is in a difficult situation because materiality isdefined from a user’s viewpoint.a. Define materiality as used in accounting and auditing, particularlyemphasizing the differences that exist between the FASB and theU.S. Supreme Court materiality definitions.b. Three major dimensions of materiality are: (1) the dollar magnitudeof the item, (2) the nature of the item under consideration, and(3) the perspective of a particular user. Give an example of each.c. Once the auditor develops an assessment of planning materiality,can it change during the course of the audit? Explain. If it doeschange, what is the implication of a change for audit work thatthe auditor has already completed?
In auditing, ____________ is the process of identifying and assessing the risks of material misstatement in the financial statements, allowing auditors to tailor their audit procedures accordingly.
In the auditing process
Select one:
a.
the criteria for evaluating information will not vary depending on the information being audited.
b. the audit report communicates the auditor's findings to users.
c. the types and amounts of evidence remain constant from audit to audit
d.
evidence are gathered by the auditor to determine whether the audited information is stated in accordance with SEC standards.
Chapter 5 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
Ch. 5 - Prob. 1CYBKCh. 5 - Prob. 2CYBKCh. 5 - Prob. 3CYBKCh. 5 - Prob. 4CYBKCh. 5 - Prob. 5CYBKCh. 5 - Prob. 6CYBKCh. 5 - Prob. 7CYBKCh. 5 - Prob. 8CYBKCh. 5 - Prob. 9CYBKCh. 5 - Prob. 10CYBK
Ch. 5 - Prob. 11CYBKCh. 5 - Prob. 12CYBKCh. 5 - Prob. 13CYBKCh. 5 - Prob. 14CYBKCh. 5 - Prob. 15CYBKCh. 5 - Which of the following accounts would not be...Ch. 5 - Prob. 17CYBKCh. 5 - Prob. 18CYBKCh. 5 - Prob. 19CYBKCh. 5 - Which management assertion is usually most...Ch. 5 - Prob. 21CYBKCh. 5 - Prob. 22CYBKCh. 5 - Prob. 23CYBKCh. 5 - Prob. 24CYBKCh. 5 - Prob. 25CYBKCh. 5 - Prob. 26CYBKCh. 5 - Prob. 27CYBKCh. 5 - Prob. 28CYBKCh. 5 - Prob. 29CYBKCh. 5 - Prob. 30CYBKCh. 5 - Prob. 31CYBKCh. 5 - Prob. 32CYBKCh. 5 - Prob. 33CYBKCh. 5 - Prob. 34CYBKCh. 5 - Prob. 35CYBKCh. 5 - Prob. 36CYBKCh. 5 - Prob. 37CYBKCh. 5 - Prob. 38CYBKCh. 5 - Prob. 39CYBKCh. 5 - Prob. 40CYBKCh. 5 - Prob. 41CYBKCh. 5 - Prob. 42CYBKCh. 5 - Prob. 43CYBKCh. 5 - Prob. 44CYBKCh. 5 - Prob. 45CYBKCh. 5 - Prob. 46CYBKCh. 5 - Prob. 47CYBKCh. 5 - Prob. 48CYBKCh. 5 - Prob. 1RQSCCh. 5 - Prob. 2RQSCCh. 5 - Prob. 3RQSCCh. 5 - Prob. 4RQSCCh. 5 - Prob. 5RQSCCh. 5 - Prob. 6RQSCCh. 5 - Professional guidance indicates that the auditor...Ch. 5 - Identify the accounts associated with the...Ch. 5 - Assume that an organization asserts that it has...Ch. 5 - Prob. 10RQSCCh. 5 - Prob. 11RQSCCh. 5 - Prob. 12RQSCCh. 5 - Prob. 13RQSCCh. 5 - List factors that might affect an audit firm’s...Ch. 5 - Prob. 15RQSCCh. 5 - Prob. 16RQSCCh. 5 - Prob. 17RQSCCh. 5 - Prob. 18RQSCCh. 5 - Prob. 19RQSCCh. 5 - Prob. 20RQSCCh. 5 - Prob. 21RQSCCh. 5 - Prob. 22RQSCCh. 5 - Prob. 23RQSCCh. 5 - Prob. 24RQSCCh. 5 - Prob. 25RQSCCh. 5 - Prob. 26RQSCCh. 5 - Prob. 27RQSCCh. 5 - Prob. 28RQSCCh. 5 - Prob. 29RQSCCh. 5 - Prob. 30RQSCCh. 5 - Prob. 32RQSCCh. 5 - Prob. 33RQSCCh. 5 - Prob. 34RQSCCh. 5 - Prob. 35RQSCCh. 5 - Prob. 36RQSCCh. 5 - Prob. 37RQSCCh. 5 - Prob. 38RQSCCh. 5 - Prob. 39RQSCCh. 5 - Prob. 40RQSCCh. 5 - Prob. 42RQSCCh. 5 - Prob. 43RQSCCh. 5 - Prob. 44FF
Knowledge Booster
Similar questions
- An audit opinion of a company’s fi nancial reports is most likely intended to:A . detect fraud.B . reveal misstatements.C . assure that fi nancial information is presented fairly.arrow_forward5. Which of the following is not a primary purpose of audit documentation? * A. To assist in the formulation of audit conclusion B. To facilitate the review of the audit procedures done by the audit team C. To coordinate the conduct of the audit D. To prepare evidence in the event of a suit against the client E. None of themarrow_forwardWhich of the following characteristics is not a measure of the appropriateness of audit evidence? Quality of audit evidence. Relevance of evidence in providing support for, or detecting, misstatements in transactions, balances, disclosures and related assertions. Reliability of audit evidence Quantity of the audit evidencearrow_forward
- Which of the following statements is not true with respect to the performance principle?a. Auditors are required to prepare a written audit plan during the planning stages of initialaudits but are not required to do so in continuing audits.b. Audit teams consider materiality in planning the audit, performing the audit, and evaluating the effect of misstatements on the entity’s financial statements.c. In assessing the risk of material misstatements, the audit team considers the effectivenessof the entity’s internal controls in preventing and detecting misstatements.d. Auditors are required to consider both the relevance and the reliability of evidence inevaluating whether the evidence they have gathered is appropriate.arrow_forwardWhich of the following statements is correct about the reliability of audit evidence? a.Sufficiency of evidence refers only to the quality of evidence obtained. b.Evidence obtained from one source only is more reliable than evidence obtained from multiple sources. c.Effective controls over financial reporting provides more assurance on the reliability of internally generated documents. d.Information obtained orally is the most reliable evidence.arrow_forwardWhich of the following statements best describes auditors’ responsibility for detecting a client’s noncompliance with a law or regulation?a. The responsibility for detecting noncompliance exactly parallels the responsibility for errors and fraud.b. Auditors must design tests to detect all material noncompliance that indirectly affects the financial statements.c. Auditors must design tests to obtain reasonable assurance that all noncompliance with direct material financial statement effects is detected.d. Auditors must design tests to detect all noncompliance that directly affects the financial statements.arrow_forward
- Which of the following statements is not a correct statement regarding audit evidence? Select one: a. External evidence, such as communications from banks, is generally regarded as more reliable than answers obtained from inquiries of the client b. Documents that originate outside the company are considered more reliable than those that originate within the client's organization. c. Evidence obtained from an independent source outside the client organization is more reliable than that obtained from within. d. Documentary evidence is more reliable when it is received by the auditor indirectly rather than directly.arrow_forwardTrue/False 1. A confirmation is considered documentary evidence secured from outside the organization and sent directly to the auditors. 2. The auditor needs the client’s permission to send out “confirmations” 3. A customer’s response to a receivable confirmation request may contain restrictive language concerning its use. All restrictions would invalidate the reliability of the response as audit evidence.arrow_forwardWhich of the following statements is incorrect regarding the reliability of audit evidence? a. While internal audit evidence is considered to be acceptable, the auditor usually prefers audit evidence form external sources. b. Oral representation by the client management is not a valid evidence. c. The effectiveness of accounting and internal control adds to the reliability of internal evidence. d. Audit evidence obtained directly by the auditor is more reliable than that one provided by the client.arrow_forward
- Incorporating elements of unpredictability in the selection of audit procedures to be performed by auditors is important.Explain whyarrow_forwardOne of the uses of audit working papers is to prove the independence of the auditor. TRUE OR FALSE? WHY?arrow_forwardWhen planning an audit, which of the following is not a factor that affects auditors’ decisions about the quantity, type, and content of audit documentation?a. The auditors’ need to document compliance with generally accepted auditing standards.b. The auditors’ need to verify the existence of new sales contracts important for the client’sbusiness.c. The auditors’ judgment about their independence with regard to the client.d. The auditors’ judgments about materiality.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
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...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher: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
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