The AICPA removed its general prohibition of CPAs taking commissions and contingentfees becausea. CPAs prefer more price competition to less.b. Commissions and contingent fees enhance audit independence.c. Nothing is inherently wrong about the form of fees charged to nonaudit clients.d. Objectivity is not always necessary in accounting and auditing services

Q: Why do you think it is so difficult to find an actual report? b. If you found an auditor’s report,…

A: a.It is difficult to find an actual report because  of following reasons: 1.  Challange : Reporting…

Q: information should be communicated to management

A: Internal control system is the set of policies and procedures implemented in an organization to…

Q: CredPoint SAOG Company is unhappy with the audit report and threatens to change auditors next year.…

A: Credpoint is a big Client and losing such a client is a big matter & if an audit report is…

Q: ould mandatory rotation of audit firms improve the quality of the audit or would it simply result in…

A: Audit is defined as the activity of the auditors to analyze and review the fairness, completeness,…

Q: Which of the following is NOT likely to be considered as a management function? 1.Creating a…

A: The functions of management briefly refers to process of planning, controlling, staffing,…

Q: CPA not to accept a new audit engagement

A: A CPA may not accept new audit engagement if he suspects that there will be a restriction in scope…

Q: Is independence impaired when an auditor is hired, paid, and fired by the same corporate managers…

A: Audit: Audit is the process of verification of the compliance of the financial statements.

Q: Why is independence is such an important requirement for auditors. Who gets hurt when accountants…

A: An auditor is an individual or an organisation authorized to review and verify the effectiveness,…

Q: Under what circumstances can you envision management using alternative one rather than alternative…

A: We’ll answer the second question since we require more information to answer first question. Please…

Q: According to Sarbanes-Oxley, the audit committee must pre-approve all audit and non-audit services.…

A:

Q: Which of the following statements is not true about auditing and information risk? O A. Auditing has…

A: Auditing is an inspection of books of accounts by a qualified professional known as auditor by…

Q: Companies of all sizes try to reduce business risks, create disaster recovery plans, and also…

A: Business risk Business risk is the risk of lowering the profits of a company. Any factor that…

Q: A CPA wishes to use representation letter as a substitute for performing other audit procedures.…

A: Following is the answer to the given question

Q: Which of the following is not an internal audit objective designed to add value to a purchasing…

A: Internal Audit: It is an activity of independent nature that consults activities that are designed…

Q: Under what circumstances can you envision management using alternative one rather than alternative…

A: Under what circumstances can you envision management using alternative ones rather than alternative…

Q: Provide a detailed example as to what might cause an auditor/audit firm to decline taking on a new…

A: Audit engagement: Audit engagement is the act done by the auditor/audit firm to accept the audit of…

Q: Some criticize the accounting profession for using expressions in the audit report that seem to be…

A:

Q: Which statement is FALSE?

A: ANSWER The Second Statement is FALSE As it establishes a mutuality of interest between KPMG and the…

Q: In our discussion of the KPMG professional judgment framework, we pointed out that biased judgments…

A:

Q: Which of the following is an example of a self-interest threat to the fundamental principles? The…

A: Self interest threat is the threat of auditor that holds a direct or indirect financial interest in…

Q: As an auditor, you run across some abnormalities in a company’s books. What you find, makes you a…

A: An Auditor’s report is a letter by auditor in which information containing that company’s financial…

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: Which of these statements is/are correct? | If an auditor had the required knowledge and…

A: Audit means checking of financial statements of a company.

Q: What are the differences between business failure, auditor failure, and audit risk? Is it fair to…

A: Audit risk is the risk which arises due to the probability or the chance of reporting the financial…

Q: A company limits access to computerized accounting records. What can be said of this procedure? a.It…

A: Limited Access Control: Limited access control is a type of control that provides limited access to…

Q: A number of cases have considered the auditor’s liability in relation to persons other than the…

A: Generally, it is considered that the auditor's liability in relation to person other than the…

Q: Give one reason why performing advisory services could enhance audit quality. Give one reason why…

A: Here discuss about the details of the importance of performance advisory service which are needed…

Q: The following relates to the Menendez–Halliburton situation described in the text.(a) How would you…

A: (a)

Q: In Crazy Eddie, the auditors’ work plan and results were viewed by the client, in part because the…

A:

Q: Which of the following statements is/are correct? O a. The ban on simultaneously offering consulting…

A: Auditing- Auditing the words seems like it is a principle-oriented subject but is one of the…

Q: We believe that CPA Firm A has audited the majority of the claims of the consolidated company. CPA…

A: Given, CPA Firm A has audited the majority of the claims of the consolidated company. CPA Firm B…

Q: There is no significant relationship between audit fees and non audit fees paid by the client…

A: Auditing is the verification of the accounting statement and for which auditor provides the opinion…

Q: ritique the following claim: External auditors independence would be strengthened if company…

A: Auditor is a person who is entrusted to verify the accuracy of records and authorised to review the…

Q: 118-Since accounting information is used for decision making. As a result of financial…

A: Financial statement means the statement including income statement , balance sheet , cash flow…

Q: uditors must not only decide whether to accept new clients; they also should periodically review…

A: Auditors has a right to take all working papers and ask relevant question from the personnel working…

Q: materiality

A: Ans. Materiality concept states that an accounting standard can be ignored if the net impact of…

Q: Regarding auditor remuneration, a self-interest threat to professional competence and due care is…

A: The auditor would require to provide the service with his full competence and due care. But if he…

Q: Which of the following is not a way by which the Sarbanes-Oxley Act attempts to ensure auditor…

A:

Q: The audit committee’s responsibility for auditor independence concernsa. Ensuring that partners of…

A: The audit committee’s responsibility for auditor independence concern ensuring that partners of the…

Q: Since accounting information is used for decision making. As a result of financial manipulations, it…

A: Option C is incorrect because Even though a fair accountant is hired the chances of being influenced…

Q: Do you believe that the SEC should prohibit auditors from providing all nonaudit services for audit…

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

Q: Some accountants argue that the receiving department should be eliminated. Discuss the objective of…

A:

Q: Some auditors claim that increased exposure under creates a litigation environment that is unfairly…

A:

Q: Negative Assurance in Review Reports. One portion of the report on a review services engagement is…

A:

Q: 2. The auditors who find that the client has committed an illegal act would be most likely to…

A: When auditors discover that a client has engaged in illegal activity, they are more likely to leave…

Q: Audit committees have an essential role to play in ensuring the integrity and transparency of…

A: Answer: (d) Details of the procedures that the auditor intends to apply. The auditors should not be…

Q: Which of the following is NOT among the conditions that give rise to a demand by external users for…

A: The conditions that give rise to a demand by external users for independent audits of financial…