If the auditor concludes that there is a high likelihood of material misstatement in accounts receivable due to changing economic conditions, the auditor concludes that inherent risk for accounts receivab is low. Select one: OTrue O False e

Q: State the appropriate audit opinion that the auditor would require.

A: Among various Auditor's Opinions, one of the opinion can be Disclaimer of Opinion.  Auditor needs to…

Q: Which of the following audit procedures is least appropriate for addressing the assertion of…

A: Assertion of Valuation is one of the 7 assertions of Auditing. Under the assertion of valuation, it…

Q: Renewal of notes maturing shortly after the balance sheet date may alter the auditors’ thinking as…

A: Introduction: Balance sheet: It contains all Assets and liabilities of the company for the period…

Q: An auditor is required to confirm accounts receivable if the accounts receivable balances are:…

A: Accounts receivable refers to the money due to the seller from buyers who had purchased on account…

Q: b. A reply from a receivable confirmation letter received from the customer through the client is…

A: Confirmation letters are part of audit procedure and are sent to outside parties to confirm certain…

Q: Which of the following statements is invalid relating to confirmation of accounts receivable?  a. A…

A: Solution: Positive confirmation means inquiry that requires response from customer confirming the…

Q: If the auditor learns before he starts the audit that the client's company uses excess cash (surplus…

A:

Q: Auditors of financial statements are designed to obtain reasonable assurance of detecting material…

A: The auditor is required to obtain reasonable assurance that financial statements aa a whole are free…

Q: In auditing accounts receivable, the negative form of confirmations request is used when A. Response…

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: financial statement assertion for accounts receivable

A: Option a is wrong because the lower value of receivable turnover than that of industry does not…

Q: The SEC notes, with respect to materiality, that Group of answer choices Professional judgment…

A: The auditor is responsible for forming an opinion on the financial statement audited. The auditor…

Q: Detection risk is the risk that O a client's system of internal controls will not prevent or detect…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: basic step in auditing unclaimed salaried and wages is to verify disposition of the account…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: An auditor tested the client's internal controls over granting customers credit and establishing…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: f the auditor want to assure that Receivables have not been sold. What assertion he or she want to…

A: Existence represents that whether accounts receivable of the company really exist on a particular…

Q: ome account balances such as those for pensions and leases are the result of complex calculations.…

A: Answer: The correct answer is (3) inherent risk.

Q: Auditors allocate the preliminary judgment about materiality to financial statement segments rather…

A: Audit:   It is an independent examination of the financial information of an organization to test…

Q: When making a decision about the dollar amount in an account balance based on a sample, the audit…

A:

Q: f the auditor obtains sufficient evidence on a client's accounts receivable balance through…

A: EOM paragraph provide by the auditor when he wants to explain some audit procedures or matter that…

Q: An auditor must identify the relevant assertions about each significant financial statement account…

A: a.

Q: Choose the one correct answer Which of the following statements is valid relating to confirmation…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: A material weakness is a situation in whicha. It is probable that an immaterial financial statement…

A: Material weakness: Combination of deficiencies in internal control over financial reporting of the…

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: Which of the following types of receivables would not deserve the special attention of the auditor?…

A: Audit is the process of checking and verifying the financial statements in business and to analyse…

Q: A client uses percentages of aging categories to calculate the allowance for doubtful accounts.…

A: The business entities are required to audit their financial statements so as to know whether the…

Q: which of the following regarding errors is correct Select one: a. it is easier for the auditor to…

A: Ans. Errors can be of two types - i. Intentional error ii. Unintentional error Intentional errors…

Q: Which of the following statements about confirming accounts receivable (A/R) and accounts payable…

A: Confirmations regarding the accounts balances are one of the important elements in determining the…

Q: An auditor is required to confirm accounts receivable if the accounts receivable balances area.…

A:

Q: To allocate the preliminary estimate of materiality to the accounts, the auditor might consider A.…

A: in order to plan the nature timining and extent of the audit procedure that is needed to perform the…

Q: The auditor faces a risk that the examination will not detect material misstatements in the…

A: Introduction: An auditor verifies the accuracy of videoed commercial transactions. Auditors must…

Q: An auditor discovered the following matters while performing tests of controls: 1.An obligation for…

A: Internal Controls: The process designed, implemented, and maintained by those charged with…

Q: which of the following regarding errors is not correct Select one: a. unintentional misstatement of…

A: It is pertinent to note that Fraud is an intentional act by the Management, Those charged with…

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: In deciding upon the acceptable risk of incorrect acceptance for an account, an auditor considers…

A: Auditing is the procedure of finding the errors and misstatements presented in the financial…

Q: An auditor reviews aged accounts receivable to assess likelihood of collection to support…

A: The aged account receivable is reviewed by the auditor that assess the posibility in order to…

Q: The following are specific balance-related audit objectives applied to the audit of accounts…

A: The importance of assertions in auditing cannot be overstated. In the auditing process, assertions…

Q: The audit risk model includes the four risks listed below. Match the type of risk with the related…

A: Audit risk is the risk that financial statements are material misstatement and audit opinion states…

Q: Why is it more important to search for unrecorded notes payablethan for unrecorded notes receivable?…

A: Notes payable is a liability where a borrower records a written promise to repay the amount to…

Q: If the total of the schedule of accounts payable does not agree with the Accounts Payable balance,…

A:

Q: An auditor issued an unqualified opinion on financial statements that failed to disclose that a…

A: Auditing refers to evaluating the books of accounts to determine the misstatement if any or to check…

Q: Choose the one correct answer 6. In auditing the client’s receivables, the auditor decided to…

A: existence relates to checking of existence of assets, liability and equity Valuation refers to…

Q: Items 1 through 6 are questions typically found in a standardinternal control questionnaire used by…

A: a.

Q: As auditor you noticed that a long-term note payable of your client has no stated rate of interest ,…

A: Notes payable is a ledger created for recording the promissory notes issued at their face values.…

Q: Question 15 An auditor is required to confirm accounts receivable if the accounts receivable…

A: Audit of accounts receivable - Auditor should check the following points while performing audit of…

Q: Read the case. Then answer the questions based on it.   BACKGROUND: Audit standards indicate that…

A: Answer:- 2 Auditors should mitigate the risk associated with both very large and very small…

Q: When accounts receivable are confirmed at an interim date, auditors need not be concerned witha.…

A: Step 1 Accounts receivable is frequently a vital asset so auditors required an extensive and…