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
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Chapter 8, Problem 17RQ
To determine
Explain the meaning of materiality used in accounting and auditing. Explain the relationship between materiality and the phrase to obtain reasonable assurance in the auditor’s report.
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Define the term "materiality" in the context of audit reporting. What factors will influence the auditor's assessment of materiality?
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Consider the concepts of sufficient and appropriate audit evidence. Assess how audit risk relates to audit evidence.
How do auditors audit accounting estimates and other subjective information? What are analytical procedures, and why are they a useful audit tool? Explain the importance of audit documentation.
Chapter 8 Solutions
Auditing and Assurance Services (16th Edition)
Ch. 8 - Prob. 1RQCh. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Prob. 4RQCh. 8 - Prob. 5RQCh. 8 - Prob. 6RQCh. 8 - Prob. 7RQCh. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - Prob. 14RQCh. 8 - Prob. 15RQCh. 8 - Your client, Harper Company, has a contractual...Ch. 8 - Prob. 17RQCh. 8 - Prob. 18RQCh. 8 - Prob. 19RQCh. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22RQCh. 8 - Prob. 23RQCh. 8 - Prob. 24RQCh. 8 - Prob. 25.1MCQCh. 8 - Prob. 25.2MCQCh. 8 - Prob. 25.3MCQCh. 8 - Prob. 26.1MCQCh. 8 - Prob. 26.2MCQCh. 8 - Prob. 26.3MCQCh. 8 - Which one of the following statements is correct...Ch. 8 - Prob. 27.2MCQCh. 8 - Prob. 27.3MCQCh. 8 - Prob. 28.1MCQCh. 8 - Prob. 28.2MCQCh. 8 - Prob. 28.3MCQCh. 8 - Prob. 29DQPCh. 8 - Prob. 30DQPCh. 8 - Prob. 31DQPCh. 8 - Your comparison of the gross margin percent for...Ch. 8 - Prob. 33DQPCh. 8 - Prob. 34DQPCh. 8 - Prob. 35DQPCh. 8 - Prob. 36DQPCh. 8 - Prob. 37DQPCh. 8 - Following are statements of earnings and financial...
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- The auditor's assessment of the reliability and sufficiency of the information contained in the underlying accounting records is a part of ______________ a. Audit Test b. Comparison c. Evaluation d. Judgementarrow_forwardJustify the auditor's need to evaluate conformity with applicable rules and regulations. How does this obligation vary for laws and regulations that have a direct impact on financial statements vs those that do not?arrow_forward1. What is appropriate audit evidence? How does an auditor determine whether the appropriate audit evidence is sufficient to support the opinion expressed in the auditor's report? 2. Explain the types of audit proceduresarrow_forward
- Define the concept of materiality in the context of financial reporting. What is thedifference between how the auditor uses materiality at the planning stage and at the finalreview stage of the audit?arrow_forwardWhat is the purpose of the auditors’ opinion and report?arrow_forwardDiscuss the term materiality and the challenges face by an auditor in applying this term. Discuss the term reasonable assurance, and the challenges face by an auditor in applying this term. Explain the various statements that comprise the basic financial statements and the accompanying statements.arrow_forward
- Define the term "materiality" as it pertains to financial reporting. What is the difference between the auditor's use of materiality during the audit planning stage and throughout the audit final review stage?arrow_forwardWhy are auditors' reports important to users of financial statements and why it is desirable to have standard wording for the audit report?arrow_forwardWhen auditing account balances of liabilities, auditors are most concerned with management’s assertion abouta. Existence.b. Rights and obligations.c. Completeness.d. Valuation and allocation.arrow_forward
- In the context of financial reporting, define the idea of materiality. What is the difference between the auditor's use of materiality during the audit's planning stage and during the audit's final review stage?arrow_forwardAudit documentation is the written record of the basis for the auditor's conclusions that provides the support for the auditor's representations, whether those representations are contained in the auditor's report. Required: a. Assess the significance of documentation for audits.arrow_forwardAudit documentation is the written record of the basis for the auditor's conclusions that provides the support for the auditor's representations, whether those representations are contained in the auditor's report. Required: b. Discuss TWO (2) important factors that affect the form of audit documentation.arrow_forward
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