-8. Assume, that the auditor decideș to only, perform substantive tests of details when auditing the equipment account. Which of the following statements best describes the circumstancės associated with the client being audited? a. The client does not have effective controls over equipment. b. The equipment account involves only a few assets of relatively high value. c. Either a or b could be descriptive of the ,circumstances associated with the client being audited. d. Neither a nor b would be descriptive of the circumstances associated with the cient being audited.

Q: Which of the following procedures is most appropriately done if the control risk and inherent risk…

A: Audit test control is an audit examination on the internal control of an entity or firm after it…

Q: In which of the following situations would observation not provide the most compelling audit…

A: Introduction:- Audit evidence includes all of the information used by the auditor to support the…

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

A: Auditing is described as the on-site verification activity of a process or quality systems, such as…

Q: While performing your audit of Williams Paper Company, you discover evidence that indicates that…

A: Going Concern: A going concern is a word used in accounting to describe a corporation that has the…

Q: Which of the following statements are True i. The auditor has a responsibility to plan and perform…

A: Option The auditor has a responsibility to plan and perform the audit so as to obtain reasonable…

Q: Mr. Mohammed, the auditor of Sunrise LLC planned the audit properly and performed it in accordance…

A: Audit risk is the risk that  the financial statements may contain misstatements even though auditor…

Q: After considering the client's internal control the auditors have concluded that it is well designed…

A: WHEN AUDITOR FINDS INTERNAL CONTROL TO BE EFFECTIVE , HE REDUCES THE SUBSTANTIVE PROCEDURE . IT…

Q: audit engagement

A: Statement 1 is correct because an audit engagement is opinion based. The auditor conducts the…

Q: i) Which of the following statements correctly explains the responsibility of the external auditor?…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 11 - Which of the following statements is not among the characteristics of the audit function ? A)…

A: Introduction Auditing is a process which have been done by an external independent expert after the…

Q: An auditor has completed the risk assessment process for the firm and is evaluating the results. If…

A:

Q: Which of the following is least likely to be a factor that might indicate to an auditor that an…

A: special considerations are used by auditors where there is a high risk of material misstatements in…

Q: Detection risk is the risk that O a client's system of internal controls will not prevent or detect…

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

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: Uncorrected Misstatements and Performance Materiality. During the conduct of an audit, auditors may…

A:

Q: Risk of incorrect acceptance is defined as _______.     the risk that the auditor concludes that a…

A: Risk of incorrect acceptance may be defined as situation where audit sample supports a conclusion…

Q: Which of the  factors below does not have to be  considered by the auditor in determining the Key…

A: Key audit matters (KAM) are the significant matter which was found during the audit of the financial…

Q: Which of the following statement is incorrect about documentation of the audit procedures performed…

A: Audit documentation refers to the records or documentation of procedures that auditors performed.…

Q: is always a good idea for auditors to begin an audit with the professional skepticism characterized…

A: Audit: It is an independent examination of books of account of the company to represent a true and…

Q: An auditor discovered the following matters while performing tests of controls: 2.A purchase of raw…

A: a)Control - Enforcing clear record-keeping and documentation procedures.

Q: If an audit of any of these companies is performed according to the AICPA auditing standards, and…

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

Q: In a financial statement audit, inherent risk represents a. The risk that misstatements could occur…

A: In financial and managerial accounting, Inherent risk is that the risk expose by a slip-up or…

Q: Which of the following is not included in the specific objectives of the auditor under ISA 250? a.…

A: Following is the answer to the given question

Q: Which of the following statements is false regardingsubstantiveanalytical procedures?a. Substantive…

A: Audit is the process of checking and authenticating books of accounts and financial statements. It…

Q: For the following independent situations, assume that you are the audit partner on the engagement:…

A: The following situation is assessed and its effect on the financial statements of the company.

Q: Which of the following statements is not a correct statement regarding audit evidence? Select one:…

A: Audit evidence Audit evidence can be defined as the evidence that a company obtains during the…

Q: 1. What is auditor independence, and what is its significance to the audit profes- sion? Based on…

A:

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: An expert under employ by the client cannot be used for purposes of the auditor’s work because doing…

A: An audit planning refers to the strategy and the detailed approach related to the nature, timing,…

Q: 19-Which among the following is the most important limitation of an audit, which result in most of…

A: External audit means the examination performed by an external party who is professionally qualified…

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: Question 30 If the auditor plans to assess control risk at less than the maximum and rely on…

A: Introduction:- The auditor intends to evaluate audit risks at a reduced level than highest and…

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: Which of the following statements is correct about the reliability of audit evidence? a.…

A: Audit evidence means evidence or supportings that is obtained by auditor during the course of audit.…

Q: Which of the following does NOT accurately describe the concept of materiality? O performance…

A: The Materiality refers to the relevance, accuracy and reliability of the financial statements of thr…

Q: For each of the general audit procedures of (1) recalculation, (b) observation, (c) confirmation…

A: Audit procedures:  the procedures of audit are those techniques or processes which the auditors…

Q: What do auditors consider when determining the extent to which the internal auditors’ work will…

A: Risk of Material Misstatement: Material misstatement risk is the possibility that an organization's…

Q: d. When documenting their understanding of a client's internal controls, auditors are required to…

A: The books of accounts are required to be audited by the auditor so as to check whether the…

Q: For each of the above deficiencies, identify the possible impact on the company’s operation and…

A: Internal control is a system of organizing the company in which a set of rules, policies, and…

Q: Discuss the concept of professional skepticism and its importance in audit.

A: Professional skepticism is defined as a questioning mindset, being aware of events that may signal a…

Q: It is always a good idea for auditors to begin an audit with the professional skepticism…

A: option (a) is the correct answer.

Q: Which of the following statements about materiality is considered true? a. Materiality is judged by…

A: Materiality means the items which is important while studying the financial statement and which is…

Q: How will this situation affect the evidence you should accumulate in auditing fixed assets as…

A: Fixed asset additions can be examine through supporting documents i.e. invoices and can conduct…

Q: Which of the following statements is incorrect? A. As the risk of material misstatement in the…

A: It is important for the Auditors to detect the material misstatement which are involved to the…

Q: Which of the following presumptions does NOT relate to the reliability of evidence?

A: Answer:   Option B

Q: Which of the following factors most likely would cause an auditor not to accept a new audit…

A: Internal Controls: Internal controls are the principles, procedures and rules applied by a company…

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: 1)Which of the following factors most likely would cause an auditor to decline a new audit…

A: Solution Note : As per the Q&A guideline we are required to answer the first question only .…