An auditor knew that the purpose of her audit was to render reasonable assurance on financial statements that were to be used for the application for a loan; the auditor did not know the identity of the bank that would eventually give the loan. Under the Restatement of Torts approach to liability, the auditor is generally liable to the bank which subsequently grants the loan for:

Which of the following statements about confirming accounts receivable (A/R) and accounts payable (A/P) is true?   Question options:   A/R confirmations are more likely to include the client's balance than A/P confirmations.   A/R and A/P are always confirmed regardless of the materiality of the balance or risks of material misstatement.   The assertion with the highest risk of material misstatement for A/R and A/P is Existence.   Positive and negative confirmations are always used to audit A/R and A/P.

How would an auditor communicate  known there are violations of the law and the auditor's responsibilities according to the law?

In the examination of interest-bearing debt, auditors identify audit objectives, and then determine appropriate procedures.   a. List the audit objectives for substantive tests of interest-bearing debt.   b. List seven substantive tests for interest-bearing debt to help the auditors meet the audit objectives.

am. 27.

What type of opinion is issued by the auditor on the financial statements when there is some limitation on the scope of the audit or when one or more items in the financial statements are not presented in accordance with applicable accounting principles?

What does a third-party user of financial statements have to prove under common law in a suit against an auditor for the auditor's negligence? Explain each item with an example

1) Using the categories included in the professional standards, inappropriately and intentionally failing to expense expired amounts of the prepaid insurance is an example of     a)misappropriation of assets. b)other illegal acts. c)fraudulent financial reporting. d)direct effect illegal act   2)A financial statement audit should be designed to obtain reasonable assurance that the financial statements are free of material misstatement due to:   a)misappropriation of assets only. b)fraudulent financial reporting only.c)neither fraudulent financial reporting nor misappropriation of assets. d)both fraudulent financial reporting and misappropriation of assets

Select the necessary words from the list of possibilities to complete the following statements.

M5 Under the foreseeability​ standard, an accountant is liable even if he or she had no knowledge of the intended user of the audited financial statements. t/f