The auditor noticed that the financ statements of XYZ Company were some footnotes important for user: decision making. This action of management is a violation of: Select one: a. Full disclosure concept O b. Going concern concept c. Materiality concept O d. Cost benefit concept

Q: Providing information about the performance and fi nancial position of companies so thatusers can…

A: Financial reporting includes the release of financial statements as well as details on the way a…

Q: Define information risk and explain how thefinancial statement auditing process helps toreduce this…

A: Information risk is the risk that the information disseminated by a company will be materially tend…

Q: In auditing liabilities and expenses, the auditor is generally more concerned about the management’s…

A: Ans. There are various kinds of assertions which needs to be checked while auditing. Some of the…

Q: If an auditor believes the chance of financial failure is low and there is a corresponding increase…

A: Audit risks are mainly of three types: Inherent risk which is derived from the characteristics of…

Q: c) Which of the following is not an impact of SOX on auditors Multiple Choice a) Increased…

A: solution concept SOX Sarbanes Oxley Act is a act which aims at protecting the stakeholders of the…

Q: What are analytical procedures? Substantive tests designed to assess control risk Substantive tests…

A: Analytical procedures are used in proper evaluations of financial information by having an analysis…

Q: Which of the following best describes the effect of a contingent fee arrangement on the auditor's…

A: The contingent fees rule has been defined in Section 1.510 of the AICPA’s revised Code of…

Q: - The finance manager of ABC Co. approves the financial statements that has an overstated net income…

A: Qualitative characteristics: These implies to the attributes, with the help of which, the…

Q: Describe what is meant by acceptable audit risk. Explain whyeach of the following statements is…

A: Auditor willingness to accept materially misstated financial statement when the audit of company is…

Q: high for all financial statements assertions, an auditor should document the auditor’s     A B…

A: An Auditor understanding of its environment, it's entity and then assessing the risk of material in…

Q: When evaluating whether accounting estimates made by management are reasonable, the audit team would…

A: Accounting Estimates: Accounting estimates are the estimation of the amount to be deducted or…

Q: During the performance of risk assessment procedures, Andoy, CPA, noted a change in accounting…

A: The change in accounting principle is changing the accounting method, for example, previously…

Q: Which of the following statements is most likely to be included in an attorney letter?a. “Certain…

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: performance of risk assessment procedures, Andoy, CPA, noted a change in accounting principle has…

A: Changes in accounting principle happen when there is more than one generally accepted accounting…

Q: auditor’s written management representation

A: Option A is wrong because written representations are not made for cost-benefit justification.…

Q: If there is a Standard or Interpretation that specifically applies to a transaction, it overrides…

A: The answer for the True or false question on the applicability of Conceptual framework is discussed…

Q: i) Which of the following statements correctly explains the responsibility of the external auditor?…

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

Q: What possible actions would an auditor might take if a client’s financial statements depart from…

A: Introduction: A set of financial statements summarizes a company's monetary results, financial…

Q: The qualitative characteristics that make accounting information useful for decision-making purposes…

A: Decision-making: Decision making can be defined as the process of making choices through the…

Q: The two primary qualities that make accounting information useful for decision making are:…

A: Accounting information is important for top management. It provides details of financial statements.

Q: When control risk is assessed at less than high for all financial statements assertions, an auditor…

A: Control Risk: Control risk is the risk that a misrepresentation due to mistake or fraud that might…

Q: materiality

A: The first statement is true because the transactions of personal capacity affect the business entity…

Q: concept of reliability

A: Which of the following situations violates the concept of reliability? Correct Answer is :-  1,2 and…

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: When auditors wish to issue an unmodified opinion but highlight that the entity changedits method of…

A:

Q: n auditors’ report by independent accountants…… Select one: a. is ultimately the responsibility of…

A: Solution: An auditors’ report by independent accountants "gives investors assurance that the…

Q: According to the Institute of Internal Auditors (IIA), Internal Auditors should play a key role in…

A: The IIA in their paper specified internal audit’s role in relation with ERM. Roles to be performed…

Q: Having an audit performed on the company's financial statements BEST illustrates which of the…

A: An audit performed for ensuring the quality of financial information.

Q: An assurance service is defined as a service thata. Provides auditing services to nonfinancial…

A: Assurance service: It is aimed at improving the quality of information for the individual making…

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: 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: ____________ can ensure that those benefits and costs to third parties are considered in determining…

A: Accounting services are those that are being provided by the accountants to the entity. They majorly…

Q: Distinguish between business failure and audit risk. Why is businessfailure a concern to auditors?

A: Auditing is the investigation, inspection, or examination of the financial statements of an…

Q: If the Financial Statements are prepared do not achieve fair presentation, then an auditor shall O…

A: An audit is defined as the examination of financial statements in order to check whether or not the…

Q: A client’s purchasing system ends with the recording of a liability and its eventual payment. Which…

A: Completeness Assertions: The completeness assertion is to check that all the activities occurred…

Q: Entity-level controls can have a pervasive effect on the entity's ability to meet the control…

A: Controls to monitor results of the operations is an entity level control. Controls to monitor the…

Q: Which of the following disclosures regarding new accounting standards provides the most meaningful…

A: Options are referred from a source as it is missing.

Q: Documentation of an Audit Data Analytic (ADA), should be sufficient enough such that: O An…

A: Audit data analytics is an analysis of an entire population.  It is not done on the sampling basis.…

Q: In comparison to the external auditor, an internal auditor is more likely to be concerned with а.…

A: Auditing is the verification for the financial statements prepared by the entity so that necessary…

Q: How can the qualitative faithful representation (reliability) characteristic be improved in…

A: Relevance refers to how useful the data is for the processes of financial decision-making. In order…