It is not the responsibility of the auditor.2 a. exercise professional judgment 0 B. Hazard recognition 0 C. Not obtaining sufficient evidence 0 d Contact those charged with governance. 0
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- Professional skepticism is a. An attitude that includes a questioning mind. b. The auditor's application of relevant training, knowledge and experience. c. One of the professional code of ethics. d. Not necessary in auditing of the entity.a. Why do you think it is so difficult to find an actual report?b. If you found an auditor’s report, were any deficiencies noted? If so, what were they?c. Why would a service organization publicize the results of its auditor’s report?An item or information is said to be material if misstatement of which can influence the ___ a. Auditor's decision b. Audit committee's decision c. User's decision d. Management decision
- An unqualified opinion: a) is given when there is a conflict of interest.b) is one made without reservation.c) © is made when auditors are not fully qualified to audit the financial statements.d- is one made with reservationS1: When the auditor expresses a qualified or adverse opinion, communicating other key audit matters is relevant to enhancing intended users' understanding of the audit S2: When an auditor is not independent, a disclaimer must be issued stating the reason for the lack of independence S3: Scope limitations result in either a qualified opinion or adverse opinion. a. All statements are true b. All statements are false c. S1 and S2 are true d. S2 and S3 are trueFrom the options given below which of the following is not the reason of inherent limitation of audit? a. Limitation in accounting system O b. Use of human judgment O c. Poor planning O d. Human errors
- The preliminary judgement about materiality is the ______________ amount by which the auditor believes the statements could be misstated and still not affect the economic decisions of users. The missing word in this sentence is: a. Average b. Minimum c. Maximum d. MedianNoncompliance includes transactions entered by the entity’s employees and management in their personal capacity. The preliminary judgment or estimate about materiality represents the maximum amount by which a set of financial statements could be misstated and still not cause the auditor to believe that the decisions of reasonable users would be affected. Group of answer choices False, True True, False True, True False, FalseIt refers to the risks that a material misstatement will even occur, that it would not be prevented ordetected by client internal controls, and that is not detected by the auditor’s own procedures.a. Inherent riskb. Control riskc. Detection riskd. Audit risk Audit risk and materiality are considered at the level ofa. Overall financial statements.b. Assertions relating to individual account balance, class of transactions, or disclosure.c. Both a and b.d. Neither a nor b.
- Which ethical principle is violated by an auditor who discloses information for personal gain? a. Confidentiality b. Objectivity c. Competency d. Integrity2. The auditors who find that the client has committed an illegal act would be most likely to withdraw from the engagement when the: Select one:a. Illegal act has material financial statement implications.b. Auditors cannot reasonably estimate the effect of the illegal act on the financial statements.c. Illegal act has received widespread publicity.d. Management fails to take appropriate corrective action.1: What problems do you see when an auditor relies extensively on management’s representations on the financial statements? 2: Do you believe that a CPA should be able to advertise? What guidelines would you recommend? Are there any areas you believe should be avoided?