During financial statement audits, the auditors' consideration of their clients internal control is integral to both assess the risk of misstatement and to: Assess inherent risk, Design further audit procedures, Assess compliance with the Foreign Corrupt Practices Act, Provide a reasonable basis for an opinion on compliance with applicable laws

Q: Which of the following statements is correct concerning the understanding of internal control needed…

A: As per relevant standard related to internal control auditor must understand the control environment…

Q: The auditing standard that is relevant to ISA 250, consideration of Laws and Regulations in an audit…

A: An auditor is appointed by the shareholders of the company to examine the accounting books including…

Q: In connection with the audit of financial statements, an independent auditor could be responsible…

A: Option A is the correct answer.

Q: With whom should the auditor communicate whenever he or she determines that fraud may be present,…

A: Auditor is the person examining the financial statements and reports of an entity to check if the…

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

A: We shall answer the first question, since the exact question wasn't specified.Please resubmit a new…

Q: Which of the following best describes the operational audit? Select one: a. It requires the constant…

A: Operational audit is the examination and verification of all the operations of the business…

Q: esponsibility of the auditor to detect material misstatements, including misappropriation of assets…

A: a) Reasonable assurance: the term reasonable assurance refers to the assurance level that the…

Q: subcontracted by the client, specifically in what corresponds to criteria of security, availability,…

A: A  SOC for Service Organizations reports are designed to help service organizations that provide…

Q: The essence of the audit function is to: Select one: a. Examine individual transactions so that…

A: Audit simply means to examine as to whether the financial statements of the entity are free from…

Q: TRUE OR FALSE?

A: An unqualified opinion is an opinion given by an auditor after analyzing the financial statements of…

Q: Which of the following types of documentary evidence should the auditor consider the most reliable?…

A: Auditing: Auditing is the process by which assertions made by management about financial…

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: What is the primary objective of the fraud brainstorming session?a. Determine audit risk and…

A: Brainstorming Session:   The brainstorming sessions are the ones in which critical audit areas are…

Q: Which of the following statements best describes auditors’ responsibility for detecting a client’s…

A:

Q: Distinguish between an auditor’s responsibilities to detect and report errors, illegal acts, and…

A: Definition: Auditor: Auditor is an accounting professional hired by a company to review the…

Q: If the company is subject to PCAOB rules involving disclosure of control shortcomings (AS 1305),…

A: This question explains about internal control over financial reporting

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

A: Self-review threats:- This threat may occur when a previous judgment needs to be re-evaluated by the…

Q: The primary purpose for obtaining an understanding of a nonpublic audit client’s internal control is…

A: Generally accepted auditing standards (GAAS): These are defined as the set of general principles and…

Q: If the auditor performing an integrated audit identifies one or more material weaknesses in a…

A: Material weakness is defined as a deficiency or the combination of deficiencies in the company…

Q: Explain what is meant by this statement "Ordinarily, the further removed non-compliance is from the…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: This is a process of evaluating the effectiveness of a client's internal controls in preventing or…

A: INTERNAL CONTROL IS A MECHANISM WHICH IS IMPLEMENTED TO ENSURE THE INTEGRITY OF FINANCIAL AND…

Q: The auditor has considerable responsibility for notifying users as to whether or not the statements…

A: Audit: It is the independent examination of books of accounts of the company with the motive to…

Q: The auditor should assess control risk for each relevant assertion by evaluating the evidence…

A: Relevant assertion: The assertion that shows the possibility of happening a material misstatement is…

Q: When planning an audit, which of the following is not a factor that affects auditors’ decisions…

A: An auditor is a professional body appointed by firm or enterprise to examine books of accounts and…

Q: When obtaining an understanding of the entity and its environment, including its internal control,…

A: The audit of the financial statement is required to be conducted so as to ensure that the financial…

Q: In line with International Standards on Auditing (ISAs), which of the following are the overall…

A: INTERNATIONAL STANDARDS ON AUDITING (ISA) ARE PROFESSIONAL STANDARDS FOR THE AUDITING OF FINANCIAL…

Q: The SEC requires the MD&A report as well as the audit attestation on management’s assessment of…

A: MD&A report means management discussion and analysis report. The MD&A report forms a part of…

Q: If the auditor plans to assess control risk at less than the maximum and rely on controls, and the…

A:

Q: In an audit of financial statements for a company, the auditor considers internal control a. To the…

A: Audit refers to the examination or checking of the financial statements or the books of company in…

Q: Which of the following statements is not a correct statement regarding audit evidence? Select one:…

A: Audit evidence Audit evidence can be defined as the evidence that a company obtains during the…

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: Explain auditors’ responsibilities with respect to a client’s failure to comply with laws or…

A: Auditor’s  report: Auditor’s report can be defined as a formal document prepared by an auditor in…

Q: Auditing standards require that the engagement team members engage in discussion about the…

A: Audit: It is a systematic examination of books of accounts of an individual or a firm. It is done by…

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: A CPA firm’s quality control procedures pertaining to the acceptance of a prospective audit client…

A: CPA is the Certified public accountant which is generally appointed in order to perform audit…

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: Explain the responsibilities of external auditors in detecting fraud in the financial statements.

A: External auditors are the certified professionals appointed by the shareholders of the organization…

Q: Required For each of the questions above, answer the following: a) State the purpose of the internal…

A: Here asked for multi sub part question we will solve for first three sub part question for you.  If…

Q: In applying a top-down, risk-based approach to an audit, should the auditor start with the ending…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Which of the following control objectives would be least likely be considered by the internal…

A: Evaluation of the group of choices is to be done to find out which choice is not relevant for the…

Q: In a financial statement audit, the auditor obtains a reasonable level of assurance about whether…

A: The auditor's duty is to provide a reasonable assurance of whether financial statements are free…

Q: Auditors are required to obtain a sufficient understanding of each component of a client’s internal…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Which of the following actions did the Treadway Commission recommend to reduce fraudulent financial…

A: Option (a) It recommends creating an organizational environment that helps the integrity of the…