Critical audit matters are most likely to include those matters that: Multiple Choice Are communicated to the Public Company Accounting Oversight Board. Involve challenging subjective or complex auditor Judgment. Are material weaknesses in internal control. Involve significant risks.

Q: The company being audited has an internal auditor who is both competent and objective.The…

A: Answer:   Option b.

Q: What are the auditor’s responsibilities to communicate information to the audit committee under…

A:

Q: Audit standards distinguish auditors’ responsibility for planning procedures for detecting…

A: Auditors have duty to distinguishing material error of budget summaries because of resistance with…

Q: Which of the following control objectives in the General Ledger activities under the…

A: R2R is a Finance and Accounting (F&A) management process that entails gathering, analysing, and…

Q: When evaluating whether accounting estimates made by management are reasonable, the audit team would…

A: Accounting Estimates: Accounting estimates are the estimation of the amount to be deducted or…

Q: If the company is subject to PCAOB obligations for communicating control shortcomings (AS 1305),…

A: SOLUTION-   COMMUNICATION ABOUT CONTROL SHORTCOMING- STANDARD O AUDITING OF 1305 DESCRIBES THE…

Q: The auditor shall communicate with those charged with governance an overall approach and scope of…

A: The auditor shall communicate with those charged with governance an overall approach and scope of…

Q: Given the economic and time constraints in which auditors can collect evidence about management…

A: Financial statements are the statements that are prepared at the end of the period in order to…

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: What form of internal control documentation will an auditor likely use when they are not personally…

A: An Auditor is the person qualified as a Chartered Accountant who takes care of Audit.

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: Which of the following is NOT an important consideration for the auditor’s assessment of audit…

A: Audit committee is entrusted with the task of overseeing the reporting and disclosure requirements…

Q: Generally accepted auditing standards require auditors to be independent.Included within this…

A: Definition: An Independent audit report helps in the development of practices of the business and…

Q: Which of the following would be inappropriate during the risk assessment procedure of the audit…

A: Through an understanding of the entity and its surroundings, the auditor's role is to detect and…

Q: Many people confuse the responsibilities of the independent auditors and the client's management…

A: Auditing means the inspection of financial accounts of the company to determine if the records are…

Q: Which of the following statements is incorrect regarding the reliability of audit evidence? a.…

A: The audit is an independent examination of financial information of an entity whether…

Q: Analytical procedures used when planning an audit should concentrate ona. Weaknesses in the…

A: Analytical procedures are used by the auditors to analyze the accounts and transactions of the…

Q: In the integrated audit of an issuer, which of the following would not be considered an entity-level…

A: Internal control is the managements’ effective and efficient controls for achieving goals and…

Q: Which of the following statements are not true about auditors responsibilities? a) The financial…

A: The responsibility for preparation and presentation of financial statements is the responsibility of…

Q: What type of opinion(s) would the audit team issue on the effectiveness of internal control over…

A:

Q: Why do you think that inherent and control risk is responsible for the audited company(client) and…

A: Audit means checking, verifying and examining all the financial records and information to ensure…

Q: explain each choices. Reportable conditions are matters that come to an auditor's attention and that…

A: Internal  Control: An entity's board of directors, management, and other people are the ones who…

Q: Which of the following is not part of audit evidence? Information gathered by the auditors from…

A: Audit evidence means supportings or related documentation which proves truth about the financial…

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: An auditor is required to communicate significant deficiencies in internal control to Audit…

A: Internal Control: An entity's board of directors, management, and other people are the ones who…

Q: From a conceptual standpoint, how do the requirements of Sarbanes–Oxley related to nonaudit services…

A: Sarbanes-Oxley Act: Sarbanes-Oxley Act was formed after the major accounting scandals to provide…

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: Which of the following is not a way by which the Sarbanes-Oxley Act attempts to ensure auditor…

A:

Q: Which of the following is NOT a requirement in management’s report on the effectiveness of internal…

A:

Q: Choose the correct.Which of the following is not a way by which the Sarbanes–Oxley Act attempts to…

A: The explanation for the given options:

Q: Explain how the circumstances under each of the following might reflect failed leadership by…

A: Auditors:  an auditor is a person who is responsible to verify and review the accounting records and…

Q: Auditors are important because they are able to provide assurance of an organization's financial…

A: Familiarity threat is the threat that due to a long or close relationship with a client or employer,…

Q: a) The primary responsibility for the prevention and detection of fraud rests with both those…

A: 1) Yes, I completely agree because it is the management and the government entity that are…

Q: Which of the following statements are not true about auditors responsibilities? a) The financial…

A: As per ISA 200, The auditor's objectives are to obtain reasonable assurance about whether the…

Q: Which threat may occur when a professional accountant may be deterred from acting objectively by…

A: Intimidation threat may occur when a professional accountant may be deterred from acting objectively…

Q: List of matters normally communicated to those charged with governance includes: a) The overall…

A: a) The overall approach and scope of the audit, including any limitations on the scope of the audit.…

Q: Which of the following statements about management assertions, audit objectives, and audit evidence…

A: The overall objective of an auditor express an opinion on financial statements that it represents…

Q: Which of the following is not a way by which the Sarbanes–Oxley Act attempts to ensure auditor…

A: Definition:   Sarbanes Oxley Act (SOX): SOX is the act passed by the government to address the…

Q: Which of the following accurately describes a characteristic of a management letter? Select all that…

A: Management letter or letter of weakness is the letter issued to management or those charged with…

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: Which of the following presumptions does NOT relate to the reliability of evidence?

A: Answer:   Option B

Q: Audit evidence is more persuasive when : A_Information is provided by the board of directors of the…

A: The documents that are being collected by the auditor to support its work are audit evidences. For…

Q: Which threat may occur when, because of a close relationship, a professional accountant becomes too…

A: Familiarity threats, which may occur when, because of a close relationship, a professional…

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…