materiality

Q: Accountants are permitted to express “negative assurance” in which of the following reports?a.…

A: Auditing is the examination or inspection of the books of accounts or the financial statements by an…

Q: preliminary judgement about materiality is the ______________ amount by which the auditor believes…

A: Materiality: Materialiity is the threshold above which missing or incorrect informatiion within the…

Q: Which of the following statements are true a) The auditor has a responsibility to plan and perform…

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

Q: Information is immaterial if omitting it or misstating it could influence decisions that users make…

A: Materiality  is determined  by considering  both quantitative and  qualitative factors.

Q: If the auditors encounter a significant scope limitation in evaluating a public company’s internal…

A: Auditing means the inspection of financial accounts of the company to determine if the records are…

Q: TRUE OR FALSE?

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

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: An adverse opinion is most likely to be included in an audit report when   Multiple Choice   A…

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

Q: ervasive effects on the financial

A: Pervasive misstatements are misstatement in financial statements that affect the essence of…

Q: Examples of unmodified opinions which contain modified wording (without adding anemphasis-of-matter…

A: Answer:   Option D.

Q: Which of the following opinions would be issued if auditors believed that the entity’s financial…

A: The audit report offers a summary for a given fiscal year of a company's financial performance.

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: If the auditor performing an integrated audit identifies one or more material weaknesses in a…

A: Material weakness is defined as a deficiency or the combination of deficiencies in the company…

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: Explain why the auditor can be persuaded only with a reasonable level of assurance, rather than…

A: Auditor refers to the person who analyzes a company's financial statements by using evidence…

Q: f in the auditor’s judgment, management’s use of the going concern basis of accounting in the…

A: Under going concern concept, entity's financial statements are prepared on the assumption that the…

Q: External auditors cannot delegate responsibility for audit decisions to the internal auditors. *…

A: External auditors are not supposed to delegate authority to the internal auditors in respect of…

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: Auditors are not responsible to detect all errors in the financial statements. Discuss the concepts…

A: Professional skepticism is recognizing the possibility that a material misstatement due to fraud…

Q: A misstatement in the financial statements can be considered material if knowledge of…

A: We have the following question: A misstatement in the financial statements can be considered…

Q: When evaluating whether accounting estimates made by management are reasonable, auditors would be…

A: Definition: Auditing: Auditing is the process by which assertions made by management about financial…

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: With respect to fraudulent financial reporting, which one of the following statements is not…

A: Auditor can obtain reasonable assurance only, not an absolute assurance.

Q: If the auditors encounter a significant scope limitation in evaluating a public company's internal…

A: If the auditors encounter a significant scope limitation in evaluating a public company's internal…

Q: explain each choices. Reportable conditions are matters that come to an auditor's attention and that…

A: Internal  Control: An entity's board of directors, management, and other people are the ones who…

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: 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 best describes the reason why an independent auditorreports on financial…

A: Auditing is a systematic process of analyzing, verifying, and quantifying any given information. It…

Q: From the options given below which of the following is not the reason of inherent limitation of…

A: Inherent limitation of audit comprises of all those things that are responsible for limiting or…

Q: t assertions are provided to the auditor in the assertions letter, but are not disclosed on the…

A: Management Assertions are directly connected to the financial reporting framework adopted by the…

Q: Scope Limitations. Situations in which auditors are unable to obtain sufficient appropriateevidence…

A: a.

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: When an event impacts a financial statement element, it should be recognized in the accounting…

A: The financial statements of a company are prepared at the end of an accounting year which shows the…

Q: Describe the audit opinion that should be given and explain why. a)When the client is not a going…

A: Going concern assumption is a basic assumption used for the preparation of financial statements.…

Q: Which of the following statements about materiality is considered true? a. Materiality is judged by…

A: Materiality means the items which is important while studying the financial statement and which is…

Q: An unqualified opinion: a) is given when there is a conflict of interest. b) is one made without…

A: Introduction:- The followingtypes of auditor opinions are as follows under:- Unqualified opinion.…

Q: When financial statements are affected by a material departure from generally accepted accounting…

A: Generally Accepted Accounting principles: GAAP is  issued by the Financial Accounting Standards…

Q: Which of the following statements about management assertions, audit objectives, and audit evidence…

A: The overall objective of an auditor express an opinion on financial statements that it represents…

Q: In the auditor's judgement, management's use of going concerm basis of accounting is appropriate,…

A: As per standards on auditing , If the adequate disclosure is not made in the financial statement…

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

A: Answer:   Option B

Q: When planning to perform an audit, an accountant must have a clear understanding of audit risk and…

A: Audit risk refers to those risks which the auditor states while there in is an inappropriate opinion…

Q: Which of the following is correct about audit opinion? a. It does not assure the future viability of…

A: Correct option is A It does not assure the future viability of the entity Explanation The auditor's…

Q: 2) During the audit of a client you come to the conclusion that there is minimal likelihood that…

A: The auditor is appointed to form an opinion on the financial statement examined. The auditor is…