6. The auditors were not permitted to observe the taking of the client's physical inventory, a significant portion of the company's financial statements. What would this seem to involve? a. Lack of attitude b. Lack of consistency. c. Lack of evidence. d. Lack of independence.

Q: The auditor is not expected to, and cannot, reduce audit risk to zero and cannot therefore obtain…

A: Auditor An auditor refers to the person who is responsible for reviewing the company’s financial…

Q: ervasive effects on the financial

A: Pervasive misstatements are misstatement in financial statements that affect the essence of…

Q: 27.  If the auditors disagree with management regarding an accounting principle used in the…

A: Audit is the process of checking and verifying the authenticity of financial statements and…

Q: Which of the following statements is invalid relating to confirmation of accounts receivable?  a. A…

A: Solution: Positive confirmation means inquiry that requires response from customer confirming the…

Q: An audit report contains the following observations: a.  A service department's location is not…

A: Audit- It refers to an independent examination of an organization's books of accounts, typically by…

Q: Which of the following types of audit evidence can be considered the least reliable? a. Purchase…

A: Audit evidence is the data and information which is collected by an auditor by examining the…

Q: During the taking of physical inventory, the controller intentionallywithheld several inventory tags…

A: The simple meaning of word Audit is 'doing inspection or examination' and the process of audit is…

Q: S1: The risk of material misstatement of the financial statements is generally lesser when account…

A: It is required rather necessary for an auditor to obtain sufficient evidence and be independent…

Q: Which among the following is the most important limitation of an audit, which result in most of the…

A: the audit is an independent examination of financial information of an entity whether…

Q: Auditors allocate the preliminary judgment about materiality to financial statement segments rather…

A: Audit:   It is an independent examination of the financial information of an organization to test…

Q: The following audit procedures are consistent with gathering evidence about the valuation assertion…

A: Accounts receivables are those accounts to whom business has made credit sales on account and amount…

Q: An auditor is examining a nonpublic company’s inventory procurement system and has decided to…

A: Auditing is a gathering of information and evaluation of evidence as to report on the degree of…

Q: An auditor must identify the relevant assertions about each significant financial statement account…

A: a.

Q: When the auditor identifies that a key control absent he/she would most probably: Select one: a.…

A: d.  Issue a qualified or disclaimer of opinion on internal controls over financial reporting.…

Q: Which of the following procedures is usually performed by the auditor to determine if obsolete…

A: Obsolete inventory is an inventory that gets obsolete and remains unserviceable and loses its…

Q: Choose the one correct answer Which of the following statements is valid relating to confirmation…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: If the auditor believes that a misstatement is or might be intentional and the effect on the…

A: An auditor’s foremost job is to analyze whether the financial statement of the entity has any…

Q: Which of the following statements is invalid relating to confirmation of accounts receivable?  a. A…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: {Auditing} 42. Identify an alternative which is not a material misstatement from the following and…

A: Auditing The purpose of conducting the auditing is to identify the errors and omission which are…

Q: A CPA conducts audit for ABC company. As a result of ABC management's refusal to permit the CPA to…

A: SOLUTION- AS MENTION IN THE QUESTION ABC MANAGEMENT REFUSE TO PERMIT CPA TO PHYSICALLY EXAMINE…

Q: Upon conclusion of the audit of Marrow Enterprises, the audit firm noted that they have been unable…

A: The auditors audit the financial statement and issue an opinion report that includes the fact that…

Q: Which of the following is an incorrect statement?       a. The amount of audit work should vary…

A: The person that analyzes the books of the company is known as the auditor. The auditor checks all…

Q: If the audit report states that the financial statement is not free from material misstatements , it…

A: Audit is the examination and verification of financial statement for the particular period to…

Q: Which of the following circumstances would most likely cause an auditor to suspectthat material…

A: Audit Planning: For efficient performance of auditing, the auditor must plan the work with gaining…

Q: The auditor faces a risk that the examination will not detect material misstatements in the…

A: Introduction: An auditor verifies the accuracy of videoed commercial transactions. Auditors must…

Q: 8. In which of the following situations would an auditor originally choose between expressing a…

A: Qualified opinion: A qualified opinion can be issued by the auditor in the following two cases:…

Q: The auditor faces a risk that the audit will not detect material misstatements that occur in the…

A: Introduction:- The main objective of auditor is to acquire sufficient appropriate audit evidence…

Q: {Auditing} 15. Find the nature of materiality if the client incorrectly selects and applies…

A: The nature of materiality refers to the fact that the information included in the financial…

Q: How could the auditors have determined that the inventory balance was materially misstated? What…

A: Auditor is the independent qualified personnel who is a professional certified CPA. Auditor is…

Q: a. Identify and describe

A: Management can easily override controls and conceal the fraud. It is difficult for employees to…

Q: A major objective of written representations is toa. Shift responsibility for financial statements…

A: The auditor requires collecting sufficient and appropriate audit evidence during the audit for…

Q: An auditor issued an unqualified opinion on financial statements that failed to disclose that a…

A: Auditing refers to evaluating the books of accounts to determine the misstatement if any or to check…

Q: Which of the following would probably not be considered an indication of a material weakness?a.…

A:

Q: When completing the audit of internal controls for an issuer, the severity of an internal control…

A: Internal control is the managements’ effective and efficient controls for achieving goals and…

Q: Items 1 through 6 are questions typically found in a standardinternal control questionnaire used by…

A: a.

Q: As part of your audit of a client’s inventory balance, you created an expectation of what should be…

A: SOLUTION- IF THE ESTIMATES MADE BY THE AUDITORS GIVES CONFUSING INVENTORY BALANCE , THE AUDITOR…

Q: During the audit of a large manufacturing company, the auditor did not observe all locations of…

A: Unqualified and standard wording.

Q: In the auditor's judgement, management's use of going concerm basis of accounting is appropriate,…

A: As per standards on auditing , If the adequate disclosure is not made in the financial statement…

Q: What procedures must the auditor perform when gathering evidence related to contingencies? (Several…

A: Audit evidence: Audit evidence refers to the information and explanations used by the auditor in…

Q: In considering overáll believes that misstatements aggregating $50,000 would have a material effect…

A: To establish a level of materiality, auditors rely on rules of thumb and professional judgment. They…

Q: When planning to perform an audit, an accountant must have a clear understanding of audit risk and…

A: Audit risk refers to those risks which the auditor states while there in is an inappropriate opinion…

Q: Which of the following is/are the least persuasive type of audit evidences? 1. Photocopies of sales…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : Audit…

Q: As a result of management's refusal to permit the auditor to physically examine inventory,…

A: When auditor is restricted from obtaining sufficient audit evidences in relation to any item of…

Q: Which of the following is NOT among the conditions that give rise to a demand by external users for…

A: The conditions that give rise to a demand by external users for independent audits of financial…

Q: 2) During the audit of a client you come to the conclusion that there is minimal likelihood that…

A: The auditor is appointed to form an opinion on the financial statement examined. The auditor is…

Q: Below are ten independent risk factors:1. The client lacks sufficient working capital to continue…

A: 1. The first risk factor of client lack of working capital is related to Acceptable audit risk. 2.…