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
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Chapter 9, Problem 33RQSC
To determine
Introduction:The risk associated with the overall operations of a business entity is called as the potential risk. It is the risk of undesirable outcomes resulting from the hazards. So an auditor as a consultant is required for risk management, who recommend some business strategy and necessary changes.
To ascertain: Potential fraud risk factors in the revenue cycle and substantive
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Chapter 9 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
Ch. 9 - In the revenue cycle, the most significant...Ch. 9 - Which of the following statements is true...Ch. 9 - Prob. 4CYBKCh. 9 - Prob. 7CYBKCh. 9 - Prob. 8CYBKCh. 9 - Prob. 9CYBKCh. 9 - Prob. 10CYBKCh. 9 - Prob. 11CYBKCh. 9 - Prob. 12CYBKCh. 9 - Prob. 13CYBK
Ch. 9 - Prob. 14CYBKCh. 9 - Prob. 15CYBKCh. 9 - Prob. 16CYBKCh. 9 - Prob. 17CYBKCh. 9 - Prob. 18CYBKCh. 9 - Which of the following statements is false...Ch. 9 - Prob. 20CYBKCh. 9 - Prob. 22CYBKCh. 9 - Prob. 23CYBKCh. 9 - Prob. 24CYBKCh. 9 - Prob. 25CYBKCh. 9 - Prob. 26CYBKCh. 9 - Prob. 27CYBKCh. 9 - Prob. 28CYBKCh. 9 - Prob. 29CYBKCh. 9 - Prob. 30CYBKCh. 9 - Prob. 31CYBKCh. 9 - Prob. 32CYBKCh. 9 - Refer to Exhibit 9.1. Which accounts are relevant...Ch. 9 - Prob. 2RQSCCh. 9 - Prob. 3RQSCCh. 9 - An important task ¡n the audit of the revenue...Ch. 9 - Prob. 5RQSCCh. 9 - Prob. 6RQSCCh. 9 - Prob. 7RQSCCh. 9 - Prob. 8RQSCCh. 9 - Prob. 9RQSCCh. 9 - Prob. 10RQSCCh. 9 - Prob. 11RQSCCh. 9 - Prob. 12RQSCCh. 9 - Prob. 13RQSCCh. 9 - Prob. 14RQSCCh. 9 - Prob. 15RQSCCh. 9 - Stainless Steel Specialties (SSS) is a...Ch. 9 - Prob. 17RQSCCh. 9 - Prob. 18RQSCCh. 9 - Prob. 19RQSCCh. 9 - Prob. 20RQSCCh. 9 - Prob. 21RQSCCh. 9 - Prob. 22RQSCCh. 9 - Prob. 23RQSCCh. 9 - Prob. 24RQSCCh. 9 - Prob. 25RQSCCh. 9 - Prob. 26RQSCCh. 9 - Prob. 27RQSCCh. 9 - Prob. 28RQSCCh. 9 - Prob. 29RQSCCh. 9 - Prob. 30RQSCCh. 9 - Prob. 31RQSCCh. 9 - Prob. 32RQSCCh. 9 - Prob. 33RQSCCh. 9 - Prob. 34RQSCCh. 9 - Prob. 35RQSCCh. 9 - Prob. 36RQSCCh. 9 - Prob. 37RQSCCh. 9 - Prob. 38RQSCCh. 9 - Prob. 39RQSCCh. 9 - Read the following scenario about Strang...Ch. 9 - Prob. 41RQSCCh. 9 - Prob. 42RQSCCh. 9 - ZYNGA (LO Z 3, 4, 5, 6, 8) Refer to the Why It...Ch. 9 - UTSTARCOM, INC. (LO 2, 3, 4, 5, 6, 8) UTStarcom is...Ch. 9 - Prob. 47FFCh. 9 - Prob. 48FFCh. 9 - Prob. 55DAUA
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- How would you tell the difference between financial audits and forensic accounting, fraud auditing, and investigative auditing?arrow_forwardWhat are the most common revenue-recognition abuses identified by auditors?arrow_forwardWhat is the primary objective of the fraud brainstorming session?a. Determine audit risk and materiality.b. Identify whether analytical procedures should be applied to the revenue accounts.c. Assess the potential for material misstatement due to fraud.d. Determine whether the planned procedures in the audit plan will satisfy the general audit objectives.arrow_forward
- Explain the components and objectives of audit risk? How is audit risk involved in assessing the likelihood that fraud may occur and where it's most likely to occur within the financial statements? How does risk assessment during the planning stage of an audit impact the tone for the entire audit engagement?arrow_forwardWhen obtaining an understanding of the entity and its environment, including its internal control, the auditor may identify events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Such events or conditions are referred to as Group of answer choices Fraud environment. Fraud risk factors. Fraudulent activities. Fraud conditionsarrow_forwardWhat are the objectives of audit risk assessment, and why is it important in assessing the likelihood that fraud may occur? Explain why risk assessment performed during audit planning sets the tone for the entire audit engagement.arrow_forward
- Distinguish between the terms errors and fraud. Distinguish between fraudulent financial reporting and misappropriation of assets. Discuss the likely difference between these two types of fraud on the fair presentation of financial statements. Define fraud, and explain the two types of misstatements that are relevant to auditor’s consideration of fraud.arrow_forwardWhat is the fraud audit?arrow_forwardExplain why auditors usually emphasize the detection of fraud inthe audit of cash receipts. Is this consistent or inconsistent with the auditor’s responsibilityin the audit? Explain.arrow_forward
- iii. Explain the responsibilities of both management and auditors with regard to the prevention and detection of fraud.iv. State audit procedures that auditor may follow to assess fraud.arrow_forwardAccounting Which of the following statements is true regarding the identification and assessment of the risks of material misstatements by the auditor? a. As part of brainstorming activities, the auditor should identify possible frauds that could occur. Auditing standards require the auditor to identify and assess the risks of material misstatement due to fraud at the assertion level. Auditing standards require the auditor to identify and assess the risks of material misstatement due to fraud at the financial statement level. d. All of these statements are true.arrow_forwardExplain auditors’ responsibility for fraud risk assessment and define and explain the differences among several types of fraud and errors that might occur in an organization.arrow_forward
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