The auditor considers materiality from the point of ___________ a. individual account balance b. Overall financial information c. Overall financial information and individual account balance d. Past experiences

The auditor considers materiality from the point of ___________ a. individual account balance b. Overall financial information c. Overall financial information and individual account balance d. Past experiences

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates

Section: Chapter Questions

Problem 17CYBK

See similar textbooks

Related questions

Q: Ethical requirements relating to an audit of financial statements is specified under ISA 250 and it…

A: Auditing is the verification of the accounts of the entities to provide the opinion for the position…

Q: PRESENTATION AND DISCLOSURE-RELATED AUDIT OBJECTIVES DESCRIPTION 1. Occurrence and rights and…

A: Audit takes place in order to identify the fraud and errors presented in the financial statement of…

Q: 3 types of misstatements

A: Misstatements are the under or over-statements of account balances or class of transactions…

Q: Which of the following procedures would a CPA most likely perform in planning a financial statement…

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

Q: In the audit of notes payable, which balance-related audit objective is generally oneof the most…

A: Notes payable (NP): Notes payable is an obligation which arises on a debt agreement between a…

Q: 41-An auditor audits financial statements which include Income Statement, Position Statement and…

A: Option A: It is the responsibility of Management to prepare the Financial statement of the company…

Q: 17. Which of the following is correct when a company is issuing summary financial statements…

A: Summary Financial Statement - Summary Financial Statement is the summary of entire financial…

Q: The audit process to gather evidence on management's assertion in an account balance are…

A: Audit: It implies to the examination and detailed verification of the company's financial statements…

Q: The auditor considers materiality from the point of ___________ a. Overall financial information and…

A: Concept of materiality states that the information is required to be provided in the financial…

Q: Explain the role of the auditor in the financial reporting process.

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: From the following sub areas of accounting information system, identify, which one belongs to the…

A: Accounting Information system is a set of components used for gathering, making, storing, preparing,…

Q: Factors the auditor should understand as a part of his understanding of business Operations and…

A: Auditing means the independent checking of company operation by outsider.

Q: The auditor's responsibility in relation to the assessment of going concern basis of accounting is…

A: as per ISA 570(revised) : Going Concern The Auditor Responsibility is to obtain sufficient…

Q: From the options given below identify the accounting data obtained by an auditor which are…

A: There are three types of audit opinions as follows: Unqualified opinion Qualified opinion Adverse…

Q: Harley Davidson What is the auditor's opinion on HDI's financial statements?

A: Auditors opinion on financial statement is depends on the financial statements, whether they are…

Q: Financial audit Q&A Auditors also need to consider the subjective needs of users of financial…

A: Auditing involves an independent examination of financial records of an entity with a view to…

Q: In the audit of accounts payable, an auditor’s procedures will most likely focusprimarily on…

A: 1. Existence or occurrence - The best way to establish existence and ownership of investments is…

Q: 9 Which of the following terms refers to the comprehensive system for collecting, analyzing, and…

A: The answer is option (a.) [ Accounting ] Accounting is comprehensive system for collecting,…

Q: Auditor gives ________ regarding the financial statements a. Accurate view b. True and fair view c.…

A: Solution:- Every auditor required to give opinion on financial statements after examination books of…

Q: 4-What do you understand by confirmation in the context of audit procedure for obtaining audit…

A: Introduction:- Auditing may be defined as examination or inspection of books of accounts of any…

Q: 18-from the options given below identify which of the following is not responsibility of management…

A: Answer

Q: -Collecting evidence by observation refers to:

A: As per accounting, evidence is defined under the audit procedure, were the auditor is held…

Q: What is the definition of analytical procedures? What is timing of analytical procedures in a…

A: The audit procedure indicates the stages and programs of an audit performed by the auditor to obtain…

Q: 13 From the options given below identify the duty of an auditor of a company a. All the options b.…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: Under which section in the auditor's report is stated that, "we have audited the financial…

A: An audit report is issued by the independent auditor of the company that contains the opinion on…

Q: Which one of the following concepts is an important issue for the Auditors of financial accounts?…

Q: 8. Explain about the type of report the Auditor would issue END of the EXAM a. if he disagrees with…

A: Auditor modifies his opinion in the auditors report when: 1) The auditor concludes that, based on…

Q: 3. Identify and briefly discuss the inherent limitations of an audit of the set of annual financial…

A: audit of financial statements - An audit is an independent examination of financial information of…

Q: You are the audit team assign to audit the unaudited set of financial statements for XYZ Company…

A: Audit Procedures Audit procedures are a set of stages, processes, and methods used by auditors to…

Q: Independent auditors of financial statements perform audits that reducea. Business risks faced by…

A: Definition: An Independent Auditor performs audits and point out the risks involved in the business…

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

A: Introduction: Auditing is the process of verifying, validating, and investigating all financial…

Q: Auditing} 19. Choose the statement/s, which explains the concept of true and fair view. a. All the…

A: Auditing means the independent checking of a company's operation by the outsider known as an…

Q: ly the same m

A: Financial Statements: Financial statements are condensed summary of transactiions communiicated…

Q: 4. The auditors' report may be addressed to the company whose financial statements are being…

A: The auditing means to examine the financial statements of the business by the certified auditor.

Q: Which of the following are the auditor's responsibilities when it comes to the financial stațements?…

Q: 31) Baker Tilly MKM (Oman) LLC is the auditor of United Power Company SAOG (Company) and has stated…

A: The preparation of financial statements is the primary responsibility of :: Management at United…

Q: 12. The practitioner's independence is not required in which of the folle engagements? A. Audit of…

A: Audit engagement is defined as the arrangement which auditor has with the client to conduct audit of…

Q: An independent audit is important to readers of financial statements because it: a. determines…

A: 4. Audit is an independent examination of financial statements of an organisation inorder to express…

Q: An auditor’s decision either to apply analytical procedures as substantive tests or to perform…

A: Auditing: The analytical process of evaluating and assessing the accounting information furnished by…

Q: Which of the following is most associated with financial accounting reports? a.prepared in…

A: Introduction: Financial reporting is characterized by the publishing of financial statements, which…

Q: I List five basic principles governing an audit as stipulated under the Code of Ethics for…

A: “Since you have asked multiple questions, we will solve the first two questions for you. If you want…

Q: allowance for doubtful

A: Correct answer :- Right and Obligations.

Q: Financial audit Q&A What is the inspection activities to ensure the shipping or Destination Point in…

Q: Which of the following accounting concepts do accountantsand auditors assess by using financial…

A: Financial Analysis is the process of evaluation of finance related transactions to determine…

Question

27-The auditor considers materiality from the point of ___________

individual account balance

Overall financial information

Overall financial information and individual account balance

Past experiences

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

11- Which of the following is the qualitative characteristics of financial information? a. Historical b. Truthful c. Relevance d. Past related
{Auditing} 36. Recognize the title of financial statement which is audited to know the total contribution of the shareholders in the company? a. Statement of financial performance b. Notes to Account c. Statement of Owner’s equity d. Statement of financial position
Question 28 Under SSARS the hierarchy in terms of the level of service provided and degree of comfort the accountant provides to the user of financial statements is (start with the highest level of service first): A. Preparation, Review, Compilation of financial statements B. Review, Compilation, Preparation of Financial Statements C. Review,Preparation, Compilation of financial statements D. Compilation, Review, Preparation
21. Which of the following describes the purpose of a management accounting system?a) Recording the historical financial transactions of a businessb) Preparation of annual financial statementc) Record statements for external stakeholdersd) Preparation of plans for the future direction of a business
7 What are the main procedures used by an auditor or an accountant when performing a review or moderate assurance level engagement on financial statements of a company? (Hint: There are 3 main procedures, list the 3) _______________ _______________ _______________
49-Which of the following is the qualitative characteristics of financial information? a. Past related b. Historical c. Truthful d. Relevance
q27 The classification and therefore subsequent measurement of financial assets depends on…? Select one: a. The amount and terms of payment for the purchase of the financial assets. b. Maturity and cash flows received on maturity of the financial assets c. The business model of the reporting entity considering management’s intention of holding the portfolio of financial assets. d. The specifications of the external auditors.
Which of the following accounting concepts do accountantsand auditors assess by using financial analyses?a. Time period. c. Full disclosure.b. Separate entity. d. Going-concern assumption.
Qualitative Characteristics The following is a list of qualitative characteristics of useful accounting information identified in the FASB's and the IASB's Statement of Financial Accounting Concepts No. 8 and statements describing the qualities. A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness Required: Select the appropriate letter identifying each quality on the statement describing the quality. 1. Different knowledgeable and independent observers can reach consensus that a particular representation is faithful. 2. Making information available to decision makers before it loses its capacity to influence decisions. 3. Capacity to make a difference in a decision, enabling users to predict future outcomes and/or confirm prior expectations. 4. Overall objective of…
13. Which of the following is NOT an obligation or duties of an auditor? a. Inspect account books and accounting systems for efficiency b. Prepare detailed reports on audit findings c. Examine and evaluate financial and information systems d. Helps to prepare the financial statements of companies
{Auditing} 46. Name the title of financial statement, which is audited to recognize total contribution of the shareholders in the company. a. Statement of financial performance b. None of the options c. Statement of flow of cash d. Statement of Owner’s equity
Qualitative Characteristics The following is a list of qualitativecharacteristics of useful accounting information identified in the FASB'sand the IASB's Statement of Financial Accounting Concepts No. 8 andstatements describing the qualities. A. ComparabilityB. Decision usefulnessC. RelevanceD. Faithful representation E. Predictive valueF. Confirmatory valueG. VerifiabilityH. NeutralityI. Free from error J. ConsistencyK. MaterialityL. TimelinessM. UnderstandabilityN. Completeness _ _ _ _ _ _1. Different knowledgeable and independent observers conreach consensus that a particular representation is faithful_ _ _ _ _ _2. Making information available to decision makers before itloses its capacity to influence decisions._ _ _ _ _ _3. Capacity to make a difference in a decision, enabling users to predict future outcomes and/or confirm prior expectations._ _ _ _ _ _4. Overall objective of financial information. _ _ _ _ _ _ 5. Absence of bias intended to influence financial statementusers'…