EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Question
Chapter 7, Problem 7.28MCQ
To determine
Concept Introduction:
Audit report includes the opinion of the auditor on the financial statements. Audit provides his opinion based on the audit evidences obtained during the
To choose: the type of the audit report.
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Students have asked these similar questions
Which one of the following is other indicator or events or conditions that may cast significant doubt
continue as a going concern?
the entity's ability
If the auditor found misstatements in financial statements resulting from fraud, the auditor encounters exceptional
circumstances that bring into question his ability to continue performing the audit. the auditor shall :
Ask the management for his withdrawal.
Determine the professional and legal responsibilities applicable in the circumstances.
Withdraw from the engagement immediately.
Report to audit team regarding withdrawal.
If the auditor identify and assess the risk of material misstatement due to fraud or error relating entity's related activities
auditor shall:
1. Inquiry with management and others within the entity.
Auditing
EN
For Questions 21 through 30, assume that you are reporting on an audit of a client’s financial statements. Select the type(s) of opinion appropriate for the scenario. In addition, unless stated otherwise, assume the matter involved is material. If the problem does not tell you whether a misstatement pervasively misstates the financial statements or does not list a characteristic that indicates pervasiveness, two reports may be possible.
A company has not followed generally accepted accounting principles in the recording of its leases.
Question 21 options:
Qualified
Adverse
Disclaimer
Qualified or adverse
A client changed its depreciation method for production equipment from the straight-line method to the units-of-production method based on hours of utilization. The auditor concurs with the change.
Question 22 options:
Unmodified – standard
Unmodified with…
Which of the following is correct regarding the use of confirmation letters in an audit of financial statements:
a. Blank confirmation letters are usually preferred when the auditor expects an overstatement error in the account balance.
b. A reply from a receivable confirmation letter received from the customer through the client is considered an invalid reply, thus another set of confirmation letter should be sent.
c. A positive confirmation letter is preferred over a negative confirmation letter when the auditor, based on his past experience with the client, expects minimal to zero errors.
d. When an auditor does not receive a reply from a customer for a negative confirmation letter in a considerable period of time, the auditor should send out another set of confirmation letter.
Chapter 7 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 7 - Prob. 7.1RQCh. 7 - Prob. 7.2RQCh. 7 - Prob. 7.3RQCh. 7 - Prob. 7.4RQCh. 7 - Prob. 7.5RQCh. 7 - Prob. 7.6RQCh. 7 - Prob. 7.7RQCh. 7 - Prob. 7.8RQCh. 7 - Prob. 7.9RQCh. 7 - Prob. 7.10RQ
Ch. 7 - Prob. 7.11RQCh. 7 - Prob. 7.12RQCh. 7 - Prob. 7.13RQCh. 7 - Prob. 7.14RQCh. 7 - Prob. 7.15RQCh. 7 - Prob. 7.16RQCh. 7 - Prob. 7.17RQCh. 7 - Prob. 7.18RQCh. 7 - Prob. 7.19MCQCh. 7 - Prob. 7.20MCQCh. 7 - Prob. 7.21MCQCh. 7 - Prob. 7.22MCQCh. 7 - Prob. 7.23MCQCh. 7 - Prob. 7.24MCQCh. 7 - Prob. 7.25MCQCh. 7 - Prob. 7.26MCQCh. 7 - Prob. 7.27MCQCh. 7 - Prob. 7.28MCQCh. 7 - Prob. 7.29MCQCh. 7 - Prob. 7.30MCQCh. 7 - Prob. 7.31MCQCh. 7 - Prob. 7.32MCQCh. 7 - Prob. 7.33MCQCh. 7 - Prob. 7.34PCh. 7 - Prob. 7.35PCh. 7 - Prob. 7.36PCh. 7 - Prob. 7.37PCh. 7 - Prob. 7.38PCh. 7 - Prob. 7.39PCh. 7 - Prob. 7.40PCh. 7 - Prob. 7.41PCh. 7 - Prob. 7.42PCh. 7 - Prob. 7.43PCh. 7 - Prob. 7.44PCh. 7 - Prob. 7.45P
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Similar questions
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- PCAOB standards are used to conduct the audit for public companies. * True False If an auditor assigns a tolerable misstatement of $1,000 to accounts payable, he or she would need to obtain less audit evidence for that account than if $100,000 had been assigned. * True False An engagement letter establishes a clear understanding of the terms of the engagement between the client and the auditor. * True Falsearrow_forwardWhich of the following is correct about unmodified audit opinion? O a. Opinion issued once auditors examined and concluded that those financial statements are materially misstated and pervasive O b. Opinion issued once auditors could not obtain and unable to access the audit evidence for individual items c. Opinion issued once auditors make a conclusion after their testing that there is material misstatement found in the financial statements O d. Opinion issued once auditors obtain sufficient and appropriate audit evidence to the financial statements as the result of their testingarrow_forwardWith respect to fraudulent financial reporting, which one of the following statements is not correct? a.The risk that the auditor will not detect misstatement due to management fraud is greater than those due to employee fraud. b.It is difficult for the auditor to determine if misstatements in accounting estimates are caused by fraud or error. c.When the audit is properly planned and performed in accordance with ISAs, material misstatements are guaranteed to be detected by the auditor. d.Excessive pressure on management to meet expectations of third parties creates incentives forarrow_forward
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