evidence obtained
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A: Qualified Audit Report means an auditor have opinion that some accounting treatments need…
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A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
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A: The question is based on the concept of Auditing.
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A: Appropriateness is a criterion for how good audit evidence is, i.e. how relevant and reliable it is.…
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Q: Analyze the following:
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A: Answer; We have two different statements pertaining to the financial statements. Statement 1:…
Q: 17 Jljuall When the knowledge of the misstatement will affect a decision of a reasonable user of the…
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Q: 10. Recalculation and supervision are types of audit procedures. True False
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Q: When conducting analytical audit
A: auditor always looking for account relationship that do not appear logical but rather absolute…
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A:
Q: egarding the confirmation of accounts payable is true? Group of answer choices The confirmation of…
A: it is important to understand the client account payable and account receivable valences in order to…
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A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…
Q: Question 15 Confirmations of individual accounts receivables balances directly with debtors will…
A: Accounts Receivables - Accounts Receivables are the customers who bought the goods on credit.
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A: Part (i): The purpose is what distinguishes fraud from error. In s imple terms, fraud is a…
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A: Tracing is the opposite of vouching. In vouching, process started with accounting records and flow…
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A: A transaction-level internal control activity can be labeled as action taken by customer personnel…
Q: Audit evidence can come in different forms with different degrees of persuasiveness. Which of the…
A: This question is answered as per Generally Accepted Auditing Standards - AICPA.
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A: Rectification entry means where some error has been done in past and we need to rectify that errors.
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Q: Identify and explain the three components of audit risk
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Q: True or False 1. When the auditor seeks evidence concerning the allowance for doubtful accounts he…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: would help an auditor determine whether accounts payable have been misstated? Examining…
A: Accounts payable (AP) is the sum owed to creditors and suppliers by a corporation (also referred to…
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A: Internal control is very useful and important for every business. It means those procedures which…
Q: Financial audit Q&A What is the file type of the customer confirmation that is related to the…
A:
Q: Fraud risk factors are events or conditions that indicate which of the following? An…
A: MANAGEMENT IS RESPONSIBLE FOR LOOKING AND RESPONDING TO FRAUD RISK FACTORS .
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A: Financial information means information that is related to monetary values and that is related to…
Q: A. Explain Differences between Accountancy and Auditing
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
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A: Financial statements audits are performed to give a reasonable assurance that the statement Re free…
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A: Audit risk arises from error and fraud and because of the inherent limitation of audit, it is…
Q: allowance for doubtful
A: Correct answer :- Right and Obligations.
Q: Which statement is correct concerning a disclaimer of opinion and an adverse opinion? Group of…
A: The disclaimer of opinion shows that the auditor would not be able to form an opinion on the…
Question 37
The quality of evidence obtained from positive and negative
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False
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- Which of the following statements about confirming accounts receivable (A/R) and accounts payable (A/P) is true? Question options: A/R confirmations are more likely to include the client's balance than A/P confirmations. A/R and A/P are always confirmed regardless of the materiality of the balance or risks of material misstatement. The assertion with the highest risk of material misstatement for A/R and A/P is Existence. Positive and negative confirmations are always used to audit A/R and A/P.3. An auditor should perform alternative procedures to substantiate the existence of accounts receivable when a. Pledging of the receivables is probable b. No reply to a negative confirmation request is received c. No reply to a positive confirmation request is received d. Collectibility of the receivable sis in doubtQuestion 10 When an auditor is reviewing an audit client's allowance for doubtful accounts the auditing is assessing which management assertion about the client's accounts receivables. Existance Completeness Valuation Rights and obligations
- MULTIPLE CHOICE: 4. Which of the following forms of evidence represents the most competent evidence that a receivable actually exists? A. A sales invoice B. A receiving report C. A positive confirmation D. A bill of lading 5. Confirmation which is a specific type of inquiry is the process of obtaining a representation of information or of an existing condition directly from a third party. Two assertions for which confirmation of accounts receivable balances provides primary evidence are: A. Completeness and valuation B. Valuation and rights and obligations C. Existence and completeness D. Rights and obligations and existenceChoose the one correct answer. Sending accounts receivable confirmation letters to the client's customers is consistent with the auditor's objective of validating client's receivable assertion on: A. Completeness and rightsb.Completeness and valuationc. E xistence and rightsd. Existence and valuatione. None of the aboveSending accounts receivable confirmation letters to the client's customers is consistent with the auditor's objective of validating client's receivable assertion on: A. Completeness and rightsb.Completeness and valuationc. E xistence and rightsd. Existence and valuatione. None of the above
- Question 18 Which of the following statements is true regarding assertions in the revenue cycle? All five assertions presented are equally important Under normal audit risk conditions the occurrence assertion would be more relevant than the completeness assertion Audit evidence about the existence of revenues is also the most appropriate evidence about the valuation of accounts receivable The allowance for uncollectible accounts has important implications for the ownership assertion for accounts receivableAn auditor tested the client's internal controls over granting customers credit and establishing customers' credit limits. This test is relevant to the assertion of Valuation for accounts receivable. Question 47 options: True FalseMULTIPLE CHOICE: 1. Which of the following may be considered to be a primary objective of the auditor in the examination of accounts receivable? A. Establish validity and collectability of receivables B. Determine the approximate time of collectability of receivables C. Determine the relationship of receivables to sales D. Determine the reasonableness of the sales amount 2. Which of the following is not a procedure used by an auditor in the examination of accounts receivable? A. Confirmation B. Reconciliation C. Inquiry D. Physical count and inspection 3. In determining validity of accounts receivable, which of the following would the auditor consider most reliable ? A. Direct telephone communication between the auditor and debtor B. Confirmation replies received directly from customers C. Credits to accounts receivable from the cash receipts book after the close of business at year end D. Documentary evidence that supports the accounts receivable balance 4. Which of the following…
- 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 invoiceQuestion 4 If the auditor obtains sufficient evidence on a client's accounts receivable balance through alternative procedures because it is impractical to confirm accounts receivables, the auditor's opinion should be unqualified and could expect to: disclose the fact that alternative procedures were used due to client imposed restrictions. Avoid mentioning the alternative procedures disclose in the audit opinion that confirmation of accounts receivables was impracticable include a paragraph that discloses the performance of the alternative proceduresQuestion 23 Which of the following statements is correct regarding accounts payable and the auditor's procedures? Group of answer choices Because it is generally more difficult to discover a transaction that has not been recorded than to discover one that has been recorded incorrectly, the audit objective of completeness drives many of the substantive procedures applied to these balances. A judgment whether an unrecorded payable should be recorded before the financial statements are prepared depends entirely upon the source of the payable. The confirmation of accounts payable selected from the year-end trial balance of such accounts is most effective in discovering unrecorded liabilities. Unrecorded payables are often discovered through examining vouchers payable entered into the voucher register prior to the balance sheet date.