8 S1: If the engagement is revised from an audit to agreed-upon procedures, the new engagement should not mention the original engagement. S2: Compliance audits are used to determine adherence to rules and regulations set by higher authority. Group of answer choices Both S1 and S2 are incorrect. Only S1 is correct. Both S1 and S2 are correct. Only S2 is correct.

8 S1: If the engagement is revised from an audit to agreed-upon procedures, the new engagement should not mention the original engagement. S2: Compliance audits are used to determine adherence to rules and regulations set by higher authority. Group of answer choices Both S1 and S2 are incorrect. Only S1 is correct. Both S1 and S2 are correct. Only S2 is correct.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter15: Audit Reports For Financial Statement Audits

Section: Chapter Questions

Problem 27CYBK

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S1: If the engagement is revised from an audit to agreed-upon procedures, the new engagement should not mention the original engagement.S2: Compliance audits are used to determine adherence to rules and regulations set by higher authority. Group of answer choices Only S1 is correct. Both S1 and S2 are correct. Both S1 and S2 are incorrect. Only S2 is correct.
7. S1: Analytical procedures are required to be performed during the completion phase of the audit. S2: The entity’s objectives have direct relationship with the controls that it implements. Group of answer choices Only S2 is correct. Both S1 and S2 are incorrect. Only S1 is correct. Both S1 and S2 are correct. 8 S1: If the engagement is revised from an audit to agreed-upon procedures, the new engagement should not mention the original engagement. S2: Compliance audits are used to determine adherence to rules and regulations set by higher authority. Group of answer choices Both S1 and S2 are incorrect. Only S1 is correct. Both S1 and S2 are correct. Only S2 is correct. 9. S1: Auditing became only feasible during the invention of the computers. S2: Substantive audit procedures are audit procedures performed to obtain understanding of the entity and its environment. Group of answer choices Both S1 and S2 are incorrect. Both S1 and S2 are correct. Only S2 is correct. Only…
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1. Which of the following statements is correct concerning an auditor's required communication with those charged with governance? Question 24 options: Individual misstatements discovered, regardless of materiality If matters are communicated in writing, the report is appropriate for general use This communication should include disagreements with management about significant audit adjustments, whether or not satisfactorily resolved If matters are communicated in writing, the report is required to be distributed to both those charged with governance and management
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21)An audit engagement letter A.May not be prepared each period for a recurring audit engagement B.Is prepared for the benefit of the audit, audit client and general public C.Shall include specific audit procedures to be performed by the auditor D.Is usually sent by auditor to the client upon the commencement of the audit 22)The engagement letter A.Can affect legal responsibility to the client B.Can be used to alter the auditor’s responsibilities under the standards on auditing C.Is used only if it is an engagement, but has no effect for review or compilation services D.Affects the CPA firm’s responsibility to external users of audited financial statements 23)Which of the following is notinvolved during pre-planning phase? A.Obtaining information about client’s legal obligation B.Obtaining an engagement letter C.Selecting staff for engagement D.Deciding whether to accept or continue an audit engagement 24)Which of the following matters is least likely to be discussed in an…
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According to Sarbanes-Oxley, the audit committee must pre-approve all audit and non-audit services. This can be done. Case-by-case basis: Yes; Through established policies: No; Delegating the responsibility: Yes Case-by-case basis: No; Through established policies: Yes; Delegating the responsibility: No Case-by-case basis: Yes; Through established policies: Yes; Delegating the responsibility: No Case-by-case basis: No; Through established policies: No; Delegating the responsibility: Yes