Is the auditor’s liability affected if the third party was unknownrather than known? Explain

Q: What should an auditor do if they discover they have forgotten to perform a substantive procedure?

A: Audit Procedure: A specific procedure undertaken by an auditor to procedure evidence in a particular…

Q: When the CUER exceeds the TER, what courses of action areavailable to the auditor? Under what…

A: Definition: Audit: Audit is the process of verification of the compliance of the financial…

Q: e internal auditors’ responsibiliti

A: Auditor's internal control Responsibilities is an audit of the effectiveness of internal control…

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

A: Introduction: Auditing is the process of recognizing, verifying, and continue to study all…

Q: oo high, o

A: Since auditors can and often do not seek to review all activities, audit risk is essential to the…

Q: Which one of the following opinion will be issued by the auditor, if the misstatement in the…

A: Types of Auditor's Opinion : There are the four types of Auditor's opinion    Disclaimer : If the…

Q: What category of audit report will be issued if the auditor concludes that the financial…

A: Given: The issue to the auditors if the unfair financial statements are concluded.

Q: Auditors may be held liable to both their clients and third parties under common law. a. What must…

A: An auditor has an obligation to their clients and third part to exercise due professional care.…

Q: What is the difference between Error and Fraud (as defined in auditing) and how shall the auditor…

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

Q: According to the BarChris decision, how did auditors violate generally accepted auditing standards?

A: Generally Accepted Auditing Standards (GAAS):   "GAAS refers to professional external auditing…

Q: Why is it necessary to pre-number reports received? In what way might an auditor examine a claim…

A: For natural language processing, the use of Dialogue Systems :

Q: How does auditors’ liability under statutory law arise?

A:

Q: e been misleading

A: Generally Accepted Accounting Principles refer to a systematic set of laws and policies used in…

Q: What defenses might the auditors use to rebut any charges made about their audit?

A: The main purpose of the auditor in performing examination on the financial statement is to ensure…

Q: Auditor’s failure to exercise sufficient care and skill in carrying out their audit might lead to…

A: Answer: Auditors can utilize shields to wipe out dangers. On account of a different references…

Q: What possible actions would an auditor might take if a client’s financial statements depart from…

A: Introduction: A set of financial statements summarizes a company's monetary results, financial…

Q: The auditor shall express an adverse opinion when a matte

A: Auditor: Auditors can be a person or firm appointed by the company to review and provide opinions on…

Q: Inherent risk and control risk differ from detection risk in which of the following ways? A.…

A: Inherent risk is the risk of misstatement of financial statements due to factors other than flaws in…

Q: What are the obligations of the auditor in the case of a 'going concern'?

A: This question explains about the obligations of the auditor in the case of a 'going concern'

Q: Why might an auditor decide to disclaim an opinion?

A: Audit refers to the process of reviewing the controls and processes that can be used further by the…

Q: How is the auditors’ standard (unmodified) report modified for qualified or adverse opinionsissued…

A: The auditors usually issue an unmodified only in case of disclosures and accounting policies…

Q: Secondary purpose of audit documentation is to provide adequate defense in case of litigation for…

A: Audit documentation, often known as working papers as well as work papers, seems to be a work…

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: One of the uses of audit working papers is to prove the independence of the auditor.  TRUE OR…

A: Audit should prepare audit documentation which provides that audit was performed in accordance with…

Q: The prospective auditor can contact the predecessor auditor without the client approval. True O…

A: Auditor:- He is a person who is appointed to conduct a fair audit for the company and serve true and…

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: What is the upper limit on misstatements? What information does it provide the auditor?

A: A Misstatement is a statement having concealed facts or misleading information regarding the facts,…

Q: Which of the following situations will not result in modification of the auditor's report because of…

A: The scope limitation is the restrictions in the audit which is caused by the client or issues that…

Q: In an adverse opinion is expressed on the audited FS, the auditor shall express a disclaimer of…

A: Auditor opinion is statement the statement by independent auditor on finalizing statement of entity.…

Q: Why should receiving reports be prenumbered? What assertion would an auditor test using thereceiving…

A:

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: what are the auditor's responsibilty for going concern?

A: Going concern is the fundamental accounting concept which assumes that the business will continue…

Q: What are the advantages and disadvantages of disclaimer audit opinion

A: An auditor obtains the reasonable assurance that the financial statements as a whole are free from…

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: The auditor shall never include in the same auditor’s report an unmodified opinion on a single FS…

A: If the auditor determines that it is essential to express an adverse opinion or disclaim an opinion…

Q: What is the auditing definition of error and fraud, and how should the auditor deal with each?

A: This question explains about the auditing definition of error and fraud,  auditor deal

Q: The auditor provides no assuran

A: Audit evidence is the collection of documents, proofs, information, data, and facts and figures. It…

Q: What happens when the auditor cannot issue the standard unqualified/unmodified audit report?

A: Auditor can issue standard unqualified/unmodified audit report if he satisfy that financial…

Q: when the auditor want to assure that There are no unrecorded receivables. What assertion he or she…

A: Answer  Completeness means All transactions are recorded and all related disclosures are included in…

Q: What are the advantages and disadvantages of adverse audit Opinion

A: An adverse audit report is a major warning sign. An adverse audit report typically reveals egregious…

Q: ethical or unethical) on the following computations of the auditor's fee:

A: [Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: What is the maximum number of inaccuracies? What does the auditor get out of it?

A: Introduction: A misstatement is a statement that contains hidden truths or false information about…

Q: If an auditor believes that an understanding with an audit client has not been established he or she…

A: As per the ISA 220, Agreeing the terms of the audit engagement, One of the basic objectives of the…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.