Explain why the auditor can be persuaded only with a reasonable level of assurance, rather than convinced, that the financial statements are correct

Q: Define risk of material misstatement. At what level of the financial statements do auditors measure…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: TRUE OR FALSE?

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

Q: Auditors provide “reasonable assurance” that the financialstatements are “fairly stated, in all…

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

Q: The auditor is not expected to, and cannot, reduce audit risk to zero and cannot therefore obtain…

A: Auditing is described as the on-site verification activity of a process or quality systems, such as…

Q: Auditors make materiality judgments during the planning phase of the audit in order to be sure they…

A: 1.

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: If the auditor concludes that financial statements are not free from material misstatements and the…

A: Auditing refers to the art of inspecting and investigating financial accounts of a company. It is…

Q: The auditor shall express what kind of opinion when the auditor, having obtained sufficient…

A: Auditor will review the financial statements of a firm and perform auditing procedures, where the…

Q: Why do auditors use the words "present fairly

A: Present Fairly Present fairly is a term used inside the text of an audit report back to indicate…

Q: What factors should the auditor take into consideration before concluding that a financial statement…

A: Financial statements should give crucial information to any interested user of financial data so…

Q: Which of the following statement is not true about assurance ? Assurance is based on the auditor's…

A: Assurance refers to the certainty of any event given by an assurer on the basis of assessment of…

Q: If the auditor expresses an adverse or disclaimer of opinion on the complete set of…

A:

Q: Why might an auditor issue a disclaimer of opinion after an audit? A. All of these may cause an…

A: Disclaimer of opinion: The disclaimer of opinion is the opinion given by the auditor on the…

Q: The auditor shall express what kind of opinion when the auditor, having obtained sufficient…

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

Q: Which of the following is least likely to be a factor that might indicate to an auditor that an…

A: special considerations are used by auditors where there is a high risk of material misstatements in…

Q: Users of financial statements have a different perception concerning the nature of auditors’services…

A: Users of financial statements have a different perception concerning the nature of auditors’services…

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: : When client-imposed restrictions significantly limit the scope of the audit, the auditor generally…

A: Solution: True, When client-imposed restrictions significantly limit the scope of the audit, the…

Q: What type of opinion is issued by the auditorr if he or she is unable to determine the overall…

A: Introduction: The act of examining, confirming, and analyzing all financial information and papers…

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 is meant by a “colorable claim”? Do you believe auditors should be liable for investor losses…

A: Legitimate claim of a person is known as Colorable claim. It can be asserted based on the current…

Q: Compare and contrast the accumulation ofaudit evidence and the evaluation of the adequacy of the…

A:

Q: In a financial statement audit, inherent risk represents a. The risk that misstatements could occur…

A: In financial and managerial accounting, Inherent risk is that the risk expose by a slip-up or…

Q: Generally, audit evidence cannot be obtained entirely through substantive procedures   True or…

A: Substantive procedures are the method or audit tests designed by an auditor to evaluate the…

Q: all obtain so that financial statements are free from material misstatements? a. High degree of…

A: The correct answer is  c) Reasonable assurance    reasonable assurance     When conducting…

Q: If the audit report states that the financial statement is not free from material misstatements , it…

A: Audit is the examination and verification of financial statement for the particular period to…

Q: Which of the following statements concerning audit evidence is true?(1) To be appropriate, audit…

A: The auditor should form a reasonable opinion based on the appropriate and sufficient audit evidence.…

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: What type of opinion is issued by the auditor on the financial statements when there is some…

A: There are 4 types  of  audit opinions  1.Unqualified opinion  2.Qualified opinion  3.Adverse opinion…

Q: Which of the following is least likely to be considered an appropriate response relating to risks…

A: assessing risks at financial statements level - - evaluation of period-end financial statements…

Q: discuss the type of opinion is issued by the auditorr if he or she is unable to determine the…

A: Introduction: Auditing is the process of verifying, validating, and continuously investigating all…

Q: . To express an opinion on financial statements, the auditor obtains reasonable assurance about…

A: Opinion of the auditor: To express an opinion on financial statements, the auditor obtains…

Q: "Auditors can only be persuaded with a reasonable level of assurance, rather than be convinced that…

A: The reason why an auditor only provides an assurance and unable to obtain absolute assurance because…

Q: Which of the following statements is correct about the reliability of audit evidence? a.…

A: Audit evidence means evidence or supportings that is obtained by auditor during the course of audit.…

Q: What type of opinion is issued by the auditor if he or she is unable to determine the overall…

A: Introduction: The process of checking, validating, and conducting an investigation of all financial…

Q: What do auditors consider when determining the extent to which the internal auditors’ work will…

A: Risk of Material Misstatement: Material misstatement risk is the possibility that an organization's…

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: It is always a good idea for auditors to begin an audit with the professional skepticism…

A: option (a) is the correct answer.

Q: Some auditors claim that increased exposure under creates a litigation environment that is unfairly…

A:

Q: Define the danger of substantial misrepresentation. RMM is measured by auditors at what level of the…

A: Introduction : Because you posed a question with numerous subparts, we will solve the first three…

Q: What tyype of opinion is issued by the auditor if he or she is unable to determine the overall…

A: Introduction: In an audit report, an auditor's opinion is conveyed. An initial portion of the audit…

Q: What steps do you believe auditors should take if the client is not pleased with the type of audit…

A: Here discuss about the details of the Steps which are taken by the Auditors whether the Client are…

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: Discuss various type  of opinion is issued by the auditorr if he or she is unable to determine the…

A: Introduction: The act of recognizing, validating, and continuing to study all financial forms and…

Q: Sufficient and appropriate evidence is the focus of the third field work standard. * O True O False…

A: Audit is referred as an examination of the different books of accounts through an auditor that…

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

A: Answer:   Option B