QUESTION 6 Which of the following services is not an example of a nonassurance service? O A The auditor examines the computer operations of a large corporation to evaluate whether the procedures are likely to prevent misstatements In accounting and operating data. OB. The auditor compiles the tax return of a multinational corporation in accordance with the tax code. OC. The auditor prepares the financial statements of a client's company from its financial records in accordance with Generally Accepted Accounting Principles. OD. The auditor examines employee time records and personnel records to advice management how to maximize the effective use of personnel.

QUESTION 6 Which of the following services is not an example of a nonassurance service? O A The auditor examines the computer operations of a large corporation to evaluate whether the procedures are likely to prevent misstatements In accounting and operating data. OB. The auditor compiles the tax return of a multinational corporation in accordance with the tax code. OC. The auditor prepares the financial statements of a client's company from its financial records in accordance with Generally Accepted Accounting Principles. OD. The auditor examines employee time records and personnel records to advice management how to maximize the effective use of personnel.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter4: Posting To A General Ledger

Section: Chapter Questions

Problem 1ANFS

See similar textbooks

Similar questions

16. The auditors' report on a corporation's financial statements usually is addressed to the president of the companySelect one:TrueFalse 18. Application for a bank loan and Issuance of securities by a corporation are part of situations as a common required in report by an independent public accountant concerning the fairness of a company's financial statementsSelect one:TrueFalse
(B) Unusual Items: Please give two examples of “unusual items” and explain if these items affect the current period income statement or a prior period income statement. Why should these particular items be reported separately on the income statement? Please be specific. (C) Audit Reports: (1) What types of companies are required to obtain an independent audit and what is the purpose of the Audit Report? (2) An “unqualified opinion” doesn’t sound very favorable; in fact, it sounds like the person giving the opinion does not have the proper credentials. Please clarify this issue. Wouldn’t a company rather receive a “qualified opinion?” Also, does a clean opinion mean the financial statements are 100% error-free? Please explain.
TRUE OR FALSE Under Sarbanes–Oxley Section 301 public company audit committees are directly responsible for the appointment, compensation and oversight of the work of any registered public accounting firm employed by their company. Auditors are required by the Security and Exchange Commission to report to the audit committee of the publicly traded company all alternative treatments of financial information within generally accepted accounting principles that have been discussed with management officials. CFO and the audit committee depend heavily on one another
The Sarbanes–Oxley Acta. requires the SEC to establish a federaloversight board for the accounting industry.b. requires CEOs to certify periodic financialstatements.c. subjects auditors, accountants, andemployees to imprisonment for destroyingfinancial documents.d. prohibits many types of consulting servicesby accounting firms.e. All of the above are true.
Statement I: In retained earnings, the auditor should ensure whether it has been properly declared in accordance with the requirements of the Revised Corporation Code of the Philippines. Statement II: Shareholders’ Equity is the residual interest of owners in the net assets of a corporation measured by the excess of liabilities over asset. a. Statement I and II are trueb. Statement I and II are falsec. Statement I is true, Statement II is falsed. Statement I is false, Statement II is true
18. Application for a bank loan and Issuance of securities by a corporation are part of situations as a common required in report by an independent public accountant concerning the fairness of a company's financial statementsSelect one:TrueFalse
You have recently been appointed as auditor to Johnson Plc; a company whoseshares are traded on the Stock Exchange. The Directors of Johnson Plc haverecommended that you perform the following services .(i) The statutory audit of the annual financial statements.(ii) Taxation services, and(iii) Consistency services in respect of the implementation of a new informationtechnology systemYour firm has not acted for Johnson Plc before but does act as auditor for one of themajor competitors. (c) A client’s affairs should not be disclosed to third parties. However where a clienthas been guilty of an unlawful act, to whom should the auditor disclose this, andin what order ?
What is a function of the Accounting Standards Board (AcSB)? Question 15 options: It overlooks the accounts department of the federal government. It certifies individuals to provide accounting services. It provides relief to banks during financial crisis. It ensures that accounting firms do not separate their consulting and auditing businesses. It makes rules and policies for accounting firms and businesses.
Enron corporation: accounting fraud what five recommendations you would suggest to strengthen the independent audit function following the Enron sandal? what responsibilities, if any, do audit firm have with regard to the quarterly financial statements of their client?
The Sarbanes-Oxley Act A. requires the firm's CFO to personally vouch for the firm's accounting statements. B. All of the above. C. requires corporations to have more independent directors. D. prohibits auditing firms from providing other services to clients. E. requires corporations to have more independent directors and requires the firm's CFO to personally vouch for the firm's accounting statements.
Question 4 The auditor of a large public company has determined that a material weakness exists in the client's internal controls over financial reporting. Which of the following statements is true? Weakness require an adverse opinion on the financial statements taken as a whole. The auditor should express an adverse opinion on internal controls only if a material misstatement was found in the financial statements. The auditor should express and adverse opinion on internal controls even though no material misstatements were found in the financial statements. The auditor is not required to express an opinion on internal controls.