Auditors are important because they are able to provide assurance of an organization's financial statements from an objective and independent opinion. It benefits the company in several ways, such as maintaining consistency, finding errors in their processing, or detecting fraud. While performing work , the auditors may face situations when they will not be able to fulfill ethical requirements. Answer the following three questions based on the above case Which threat may occur when, because of a close relationship, a professional accountant becomes too sympathetic

Q: What is the biggest role or contribution that an accountant/auditor can do in ensuring that ethical…

A: Fraudulent Activities: Deception or other unethical tactics are used to acquire an unlawful benefit,…

Q: When comparing the auditor's responsibility for detecting employee fraud and for detecting errors,…

A: Employee errors means mistakes happened in preparation of financial statements by the employee and…

Q: Which of the following statements reflects an auditor’s responsibility for detectingfraud?(1) An…

A: Fraud in accounting means manipulation or modification of financial statements so that a false…

Q: Which of the following statements is characteristic of monitoring activities within the internal…

A: Internal controls system includes a set of rules, policies, and procedures an organization…

Q: financial statement fraud with asset misappropriation

A: Financial statement fraud is a deliberate attempt to conceal actual financial information so as to…

Q: 1: What problems do you see when an auditor relies extensively on management’s representations on…

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

Q: $1: In addition to controls being specific, they may be broad, such as policies regarding code of…

A: Internal control is a process, put in place by an entity which is designed in such a way to provide…

Q: Which one of the following is not true about internal auditors? Reports to management or those…

A: An internal auditor (IA) is an individual or company who audits the financial statements provided by…

Q: Which of the following are indicators of a high-risk or low-risk profile client? Explain? Poor…

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

Q: TRUE OR FALSE In executing their governance responsibilities, audit committees frequently interact…

A: Business entities are required to conduct an audit of their financial statements, so as to know…

Q: Auditors must consider the possibility of fraud by employees or management on every audit…

A: Fraud: When someone intentionally uses false or misleading information in an effort to fraudulently…

Q: Because of the risk of managers acting in their own self-interest rather than the company's best…

A: Ans. While conducting audit, the auditor is required to follow certain code of conduct,such as…

Q: The following questions deal with assessing controlrisk in a financial statement audit. Choose the…

A: Internal controls can be defined as the procedures to be followed in order to ensure the accounting…

Q: hich of the following statements is incorrect? Select one : a. Internal auditors provide assurance…

A: The auditor needs to know the financial information of the company in which he is being engaged as…

Q: Internal auditors are individuals from outside CPA firms that come into your business to perfom an…

A: Auditors: These are the persons who are appointed by the company in case of internal audit and…

Q: As an auditor, you run across some abnormalities in a company’s books. What you find, makes you a…

A: An Auditor’s report is a letter by auditor in which information containing that company’s financial…

Q: Written representations are an important source of evidence to the auditor. Normally during the…

A: ISA (International Standard on Auditing) deals with the responsibility of the auditor to obtain…

Q: External auditors are very important gatekeepers. What was the cause of the breakdown in the…

A: Auditing can be defined as the verification and examination of the financial statement that is…

Q: With respect to fraudulent financial reporting, which one of the following statements is not…

A: Auditor can obtain reasonable assurance only, not an absolute assurance.

Q: What is the concept behind separation of duties in establishing internal control? a. Employee fraud…

A: Answer:   Option a

Q: True or false: the purpose of an independent public accounting firms auditing and financial…

A: solution : True or false: the purpose of an independent public accounting firms auditing and…

Q: The auditors who find that the client has committed an illegal act would be most likely to withdraw…

A: Auditors are the professionals who are involved in the scrutiny of the financial reports and…

Q: Which of the following statements relating to internal and external audits is false?* The execution…

A: Audit is the process of checking and verifying the authenticity of books of account in the business.…

Q: uditors must not only decide whether to accept new clients; they also should periodically review…

A: Auditors has a right to take all working papers and ask relevant question from the personnel working…

Q: The auditor’s primary consideration is whether, and how, internal control prevents, or detects and…

A: The answer for the theory question on Auditing is discussed hereunder :

Q: Auditors of both public companies and private entities _______.     A. have a responsibility to…

A: Solution:  Auditors of both public companies and private entities "have a responsibility to report…

Q: Which of the following statement is not related to role of audit committee?     Approve…

A: In order to ensure whether the financial statements are prepared as per the standard and the…

Q: When planning the audit, the auditor should make inquiries of management in order to do the…

A: Inquiry is an audit procedure that is used extensively throughout the audit and often is…

Q: At Crazy Eddie, the management team established “deceiving the auditors” as a primary strategic…

A:

Q: If auditor maintains high degree of independence, it will result in _________ a. Attention of media…

A: Independence of auditors means when auditor is not biased while analysing and reviewing financial…

Q: Which of the following statements is not true with respect to written representations?a. The failure…

A: Introduction: Written representations are acquired by the auditors from the management in the form…

Q: Although audit reports should provide assurance to investors and creditors that financial…

A:

Q: In making client acceptance and continuance decisions, the auditor will perform various procedures…

A: ISA 210 Agreeing the terms of Audit Engagement: This Standard deals with the preconditions for…

Q: The primary difference between operational auditing and financial auditing is that in operational…

A: Operational audit means examination of the operation whether the operations  are conducted  in the…

Q: e auditor is governed by an audit framework as well as a regulatory environment that includes…

A: IT risks and controls must be evaluated from the top down. There are general controls and there are…

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: Audit committees have an essential role to play in ensuring the integrity and transparency of…

A: Answer: (d) Details of the procedures that the auditor intends to apply. The auditors should not be…

Q: (1) indicate whether you believe the scenario reflects negatively on management integrity, and…

A: Management Integrity is the inbuilt quality of the managers to follow the code of ethics defined for…