As per ISA 570, Who of the following is responsible for assessing the entity going concern assumption? Assessment of entities going concern is responsibility of shareholder. Assessment of entities going concern Assessment of entities going concern is responsibility of auditor. Assessment of entities going concern is responsibility of both management and auditor. responsibility of management.

As per ISA 570, Who of the following is responsible for assessing the entity going concern assumption? Assessment of entities going concern is responsibility of shareholder. Assessment of entities going concern Assessment of entities going concern is responsibility of auditor. Assessment of entities going concern is responsibility of both management and auditor. responsibility of management.

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

Chapter14: Completing A Quality Audit

Section: Chapter Questions

Problem 15CYBK

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Similar questions

Which of the following would assist an entity in cat and prevent fraud? a. Accounting reconciliations b. Segregation of duties c. All the options d. Performance reviews
Which of the following is not used to overcome the agency problem? a. executive compensation b. audited financial statements c. related party transactions d. internal controls
Under IFRS, changes in accounting policies are a. permitted if the change will result in a more reliable and more relevant presentation of the financial statements. b. permitted if the entity encounters new transactions, events, or conditions that are substantively different from existing or previous transactions. c. required on material transactions, if the entity had previously accounted for similar, though immaterial, transactions under an unacceptable accounting method. d. required if an alternate accounting policy gives rise to a material change in assets, liabilities, or the current- year net income.
If a nonissuer wants an accountant to perform an examination of its internal controls, the accountant should follow:a. PCAOB AS 2201, “An Audit of Internal Control over Financial Reporting That Is Integrated with an Audit of Financial Statements.”b. AICPA AT 501, “An Examination of an Entity’s Internal Control over Financial Reporting That Is Integrated with an Audit of Its Financial Statements.”c. AICPA AU-C 315, “Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement.”d. FASB Concepts Statement No. 1, “Objectives of Financial Reporting by Business Enterprises.”
Consider each of the following independent situations which have come to your attention. Ineach of the following independent and material situations assume that the client is areporting entity and that a general-purpose financial report has been prepared and audited: The management of Surf Limited's has refused to disclose a few, director related transactions on the grounds of commercial confidentiality. The financial controller reminds you that no other errors have been found in the financial report and states that the transactions are immaterial and therefore irrelevant to the users of the financial report.
The auditor’s primary consideration is whether, and how, internal control prevents, or detects and corrects: illegal actions of the Management None of these options Material misstatement of the entity’s financial statements Incentives that prompt an employee to behave improperly
Which of the following is NOT one of the purposes of internal control? a. to guarantee the success of the business b. to safeguard the entity’s assets and resources c. to deter errors, fraud, and theft d. to ensure the accuracy and completeness of the accounting data
Which of the following best describes the responsibility of the CPA in performingcompilation services for a company?(1) The CPA has to satisfy only himself or herself that the financial statements wereprepared in conformity with accounting standards.(2) The CPA must understand the client’s business and accounting methods andread the financial statements for reasonableness.(3) The CPA should obtain an understanding of internal control and perform testsof controls.(4) The CPA is relieved of any responsibility to third parties
Which of the following presumptions does NOT relate to the reliability of evidence? A. the more effective the internal control structure, the more assurance it provides about the accounting data and financial statements. B.an auditor's opinion, to be economically useful, is formed within reasonable time and based on evidence obtained at a reasonable cost. C. evidence obtained from independent sourcesoutside the entity is more persuasive than evidence secured solely within the entity. D. the independent auditor's direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly.