Urgent Question 17"Auditor should remain alert to the possibility that other audit procedures applied may bring instances of non-Not yetansweredcompliance or suspected non-compliance with laws and regulations to the auditor's attention'- Which of the followingMarked out ofprocedure or procedures should be followed by the auditor in this regard?1.00P Flag questioni) Undertaking substantive tests on classes of transactions, account balances or disclosuresii) Enquiring the management and/or legal advisers concerning litigation or claims brought against the entityOnly procedure (ii)Only procedure (0)Question 18None of the proceduresditing is the duty of:Not yetansweredBoth the procedures (i) and (ii)Marked out of

Substantive tests includes the activities performed by auditor to detect material misstatements at…

"Auditor should remain alert to the possibility that other audit procedures applied may bring instances of non- compliance or suspected non-compliance with laws and regulations to the auditor's attention'- Which of the following procedure or procedures should be followed by the auditor in this regard? i) Undertaking substantive tests on classes of transactions, account balances or disclosures ii) Enquiring the management and/or legal advisers concerning litigation or claims brought against the entity

"Auditor should remain alert to the possibility that other audit procedures applied may bring instances of non- compliance or suspected non-compliance with laws and regulations to the auditor's attention'- Which of the following procedure or procedures should be followed by the auditor in this regard? i) Undertaking substantive tests on classes of transactions, account balances or disclosures ii) Enquiring the management and/or legal advisers concerning litigation or claims brought against the entity

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

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 43CYBK

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Refer to Exhibit 2.5 and answer the following questions. a. (Sections 101, 104, and 105) How does the establishment and operation of the PCAOB help to ensure quality external audits? How will audit firm inspections and investigations by the PCAOB help ensure high audit quality? b. (Sections 201-203) How do Sections 201-203 address audit ()r independence concerns? c. (Section 206) What is a cooling-off period, and how does it address auditor independence concerns? d. (Section 301) How do the audit committee requirements help ensure effective corporate governance? e. (Sections 302 and 906) How do the officer certification requirements help to address the risk of fraud in publicly traded organizations? What is the likelihood that a CFO who is committing fraudulent financial reporting would sign the certification falsely, and what are your reactions to that possibility? f. (Section 401) How does this section relate to the Enron fraud? g. (Section 404) How do the management assessment and audit or attestation of internal controls contained in this section help to address the risk of fraud in publicly traded organizations? h. (Section 407) Why is it important that at least one member of the audit committee be a financial expert? What are the financial reporting implications if the audit committee does not have any individuals serving on it who possess financial expertise? i. (Section 802) How does this section relate to the Enron fraud?
15 Which section of the audit report contains the important matters communicated to and addressed by the auditor based on his professional judgments during the course of audit? a. Key audit matters b. Opinion section c. Going concern d. Basis of opinion
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
{Auditing} 50. The auditing standard that is relevant to ISA 250, consideration of Laws and Regulations in an audit of financial statements. Could you identify the opinion/s, which is not the objective of ISA 250? a. To obtain sufficient appropriate audit evidence regarding compliance with the provisions of those laws and regulations b. To perform specified audit procedures to help to identify non-compliance with other laws and regulations c. To respond appropriately to non-compliance or suspected non-compliance identified during the audit d. To ignore non-compliance identified during the audit as it is regular practice of entity
11. The major purposes of obtaining a client representation letter include: Select one:a. To document in the audit working papers the client's responses to many questions asked by the auditors during the engagementb. All of the mentioned is correct c. To remind the client officers of their primary responsibility for the financial statementsd. To provide evidence in areas where accounting presentation may be dependent upon management's future intentions.
{Auditing} 28. Which one of the following options is the basis for opinion for an auditor? a. ISA , sufficient and appropriate audit evidence are the basis for audit opinion b. None of the options c. Only ISA is basis of audit opinion d. Only Sufficient evidence are the basis for audit opinion
Question 23 The auditors determined that the entity is suffering financial difficulty and its going concern status is serious in doubt. Assuming the entity adequately disclosed this matter in the financial statements, the auditor must choose between which of the following report alternatives? Unmodified opinion with a reference to going concern or disclaimer of opinion. Standard unmodified report or a disclaimer of opinion. Qualified or adverse opinion. Standard (unmodified) report or adverse opinion.
3. Does a qualified opinion on management’s assessment of internal controls over the financial reporting system necessitate a qualified opinion on the financial statements? Please explain within 150 words. (To answer this question, please make sure you understand the terms “unqualified opinion” and “qualified opinion” in auditing.
22-What may be the possible purpose of using oral explanation in the audit documentation? O a. To assist conclusion reached by the auditor O b. To clarify information contained in audit documentation O c. All of the options O d. To support the work performed by the auditor
Question 44 Audit evidence can come in different forms with different degrees of persuasiveness. Which of the following is the least persuasive type of evidence? Group of answer choices Bank statement obtained from the client. Computations made by the auditor. Prenumbered client sales invoices. Vendor's invoice
{Auditing} 20. The audit is done to assure the users of the financial statements that all the financial information is properly and completely presented in the financial reports that depicts true and fair view of the entity supported by sufficient and reliable evidence.What kind of report must an auditor submit if he is not able to obtain audit evidence of possible material misstatement that is pervasive? a. He can form qualified opinion b. Disclaimer of opinion c. None of the options d. He can form unmodified opinion
15-Collecting evidence by observation refers to: a. Observing the quantity and quality of audit evidence b. Observing the process or procedure being performed by others c. Observing the accountant whether they follow the rules and regulations d. Observing the auditor while planning the audit procedure. Clear my choice