The auditor's decision as to what constitutes sufficient appropriate audit evidence is a matter ofprofessional judgement. Which of the following is NOT part of this decision?O their understanding of the clientO management's opinionO the significant risks identifiedO the evidence gathered when executing the audit Which of the following describes how the auditor tests for the rights and obligations of assets?O auditor searches for evidence to verify that assets have been recorded at appropriateamounts and allocated to correct general ledger accountsO auditor searches for evidence to verify that assets are owned by the entityO auditor searches for assets and ensures that they have been recordedO auditor searches for evidence to verify that assets included in the account balances whichappear in the financial statements are real

ANSWER: (A) OPTION (D) IS THE CORRECT ANSWER. REASON: Decisions is the procedures of mix of audit…

Answered: The auditor's decision as to what…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

One essential of a good audit evidence which can also be regarded as a limitation when the auditor is drawing his conclusions is: a. The occurrence of non-compliance with laws and regulations is always intentional b. The auditor's opinion is mostly persuasive rather than conclusive c. Management do not provide complete information to the auditors intentionally d. The audit is not an official investigation into alleged wrongdoings
Which of the following is not a required item to be communicated by the auditor tothe audit committee or others charged with governance?(1) Information about the auditor’s responsibility in an audit of financial statements.(2) Information about the overall scope and timing of the audit.(3) Recommendations for improving the client’s business.(4) Significant findings arising from the audit.
Which of the following statements regarding materiality is True? a. In general terms, levels of materiality are set depending on an auditor’s judgements. b. Materiality is determined at the start or planning phase of an audit engagement. It is a component of an audit that remains an unmoving benchmark. c. Common benchmarks that may be appropriate, may be based on levels of reported income in categories such as profit before tax, total revenue, total expenses, gross profit, total equity or net assets. d. Misstatements, including omissions, are considered to be material if they, individually or in aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
1. Jim’s boss asked him to investigate why sales for the last quarter were low. Jim interviewed one of the sales managers about the problem, and she complained that the new people didn’t know how to sell. Jim then wrote a report in which he identified the new people’s deficient skills as the problem and recommended that more training be provided for them. What errors in interpretation do you see in Jim’s report? 2. You are writing a report on the progress of your local cable company’s efforts to increase the sales of five of its products through different advertising media: print and online newspapers and magazines, television, radio, email, and social media. Plan the headings for this report and explain why you’d organize the information this way.
22 __________are required to maintain an attitude of professional skepticism throughout the audit. a. Accountants b. Auditors c. Managers d. All the options
Evaluate the following comment by an auditor: “My job isto determine whether the payroll records are fairly stated in accordance with accountingstandards, not to find out whether they are following proper hiring and terminationprocedures. When I conduct an audit of payroll, I keep out of the human resourcesdepartment and stick to the time cards, journals, and payroll checks. I don’t care whomthey hire and whom they fire, as long as they properly pay the ones they have.
Which of the following are not the safeguards to offset the threats To Fundamental Principles? a) Educational, training and experience requirements for entry into the profession b) Continuing professional development requirements c) Corporate non - governance regulations d) Professional standards e) Professional or regulatory monitoring and disciplinary procedures f) Internal review by a legally empowered third party of the reports, returns, communications or information produced by a member. Only a) and b) Only c) and f) Only c) Only b) and c)
Management in today’s corporate world has developed a habit of acting on their own interest rather than maximizing the interest or wealth of the shareholders. This has made the need for Independent Audit greater in Today’s Society than it was in 50 years ago. Mr. Ama Yaw, an investor, in his opinion sees “Auditor as an Insurer or a Guarantor of the correctness of the financial statements” because they rely only on audited Financial Statements in making investment decisions. Required: Comment on the Opinion of Mr. Ama Yaw
1. Indicate what types of reports you think they mayproduce for management’s use. 2. For each report, indicate what you think the report may include andfor what purpose they will use the report.
TRUE OR FALSE 1. Tracing helps address completeness issues while vouching address existence issues. 2. Observation is limited to the point in time at which the observation took place. 3. The cost or difficulty involved in obtaining evidence is not itself a valid basis for omitting an audit procedure. 4. Minutes of meetings of board of directors are considered corroborating information. 5. If lower detection risk is determined, the auditor may expand the extent of substantive procedures to ensure the reliability of the audit evidence.
How does an auditor evaluate the unadjusted misstatementschedule (also called summary of possible misstatements) at the end of the audit engagement to assess whether the financial statements are fairly presented? Is the auditorrequired to discuss the schedule with anyone else?
The following questions concern audit reports other thanunqualified audit reports with standard wording. Choose the best response.a. The annual audit of Midwestern Manufacturing revealed that sales were accidentallybeing recorded as revenue when the goods were ordered, instead of when they wereshipped. Assuming the amount in question is material and the client is unwilling tocorrect the error, the CPA should issue:(1) an unqualified opinion or adverse opinion.(2) a qualified “except for” opinion or disclaimer of opinion.(3) a qualified “except for” opinion or adverse opinion.(4) an unqualified opinion with an explanatory paragraph

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS