The auditors who find that the client has committed an illegal act would be most likely to withdraw from the engagement when the: Select one: a. Illegal act has received widespread publicity b. Auditors cannot reasonably estimate the effect of the illegal act on the financial statements. c. Illegal act has material financial statement implications d. Management fails to take appropriate corrective action

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: Jamie is an auditor. While preparing to audit his client, FoodCourt, he finds a weakness in the…

A: Auditing is the process that is followed by a business to check the accuracy of the financial…

Q: The auditor's reason for resignation should be disclosed through:

A: While performing an audit of a public company, the auditors discovered material illegal acts and…

Q: For each of the following situations, describe how the auditors’ report on internal control over…

A: a.

Q: In which one of the following circumstances is the improper description of accounting policies and…

A: A error or misstatement in a financial statement is said to be material if it can affect the…

Q: An adverse opinion is most likely to be included in an audit report when   Multiple Choice   A…

A: There are 4 types of audit opinions.  1.unqualified  2.Qualified 3.Disclaimer 4.Adverse opinion

Q: Which of the following internal control policies, when absent, would increase the opportunity for…

A: Note: As per the Bartleby guidelines we are required to solve a maximum of one question. Please post…

Q: If the auditor performing an integrated audit identifies one or more material weaknesses in a…

A: Material weakness is defined as a deficiency or the combination of deficiencies in the company…

Q: Which of the following are indicators of a high-risk or low-risk profile client? Explain? Poor…

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

Q: When a client’s financial statements contain a material departure from an FASB Statementon…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: Auditors have two strategies to choose from, the lower-assessed control risk strategy and the…

A: Incorrect (c)Auditors can always choose to use the predominantly substantive strategy regardless of…

Q: 4 Jamie is an auditor. While preparing to audit his client, FoodCourt, he finds a weakness in the…

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

Q: f in the auditor’s judgment, management’s use of the going concern basis of accounting in the…

A: Under going concern concept, entity's financial statements are prepared on the assumption that the…

Q: Rationalization for fraud can fall under two categories: “no harm” and “no responsibility.” Assume…

A: Rationalization: Rationalization emphasizes on the justification provided by an employee and finds…

Q: Which among the following is the most important limitation of an audit, which result in most of the…

A: the audit is an independent examination of financial information of an entity whether…

Q: Which of the following statements is incorrect regarding the reliability of audit evidence? a.…

A: The audit is an independent examination of financial information of an entity whether…

Q: Auditors are important because they are able to provide assurance of an organization's financial…

A: Intimidation Threat :- An intimidation threat occur if the professional accountant is intimidated by…

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: materiality

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

Q: : When client-imposed restrictions significantly limit the scope of the audit, the auditor generally…

A: Solution: True, When client-imposed restrictions significantly limit the scope of the audit, the…

Q: is always a good idea for auditors to begin an audit with the professional skepticism characterized…

A: Audit: It is an independent examination of books of account of the company to represent a true and…

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: The auditor’s primary consideration is whether, and how, internal control prevents, or detects and…

A: Auditors are appointed to audit the financial statements of the company to check whether the…

Q: When the auditor identifies that a key control absent he/she would most probably: Select one: a.…

A: d.  Issue a qualified or disclaimer of opinion on internal controls over financial reporting.…

Q: In a financial statement audit, inherent risk represents a. The risk that misstatements could occur…

A: In financial and managerial accounting, Inherent risk is that the risk expose by a slip-up or…

Q: With respect to fraudulent financial reporting, which one of the following statements is not…

A: Auditor can obtain reasonable assurance only, not an absolute assurance.

Q: Which sentence below is true about audit risk:  A. Audit risk is the risk that a company may hire…

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

Q: tch the type of risk with the related definition. A. Detection risk B. Control risk C. Inherent risk…

A: Solution:- 1. The probability that an auditor will give an inappropriate opinion on financial…

Q: The auditor is required to maintain professional skepticism throughout the audit. Which of the…

A: Professional skepticism entails having an inquisitive mind. Keeping on the lookout for anything that…

Q: Which of the following best describes the reason why an independent auditorreports on financial…

A: Auditing is a systematic process of analyzing, verifying, and quantifying any given information. It…

Q: Reed, CPA, accepted an engagement to audit the financial statements of Smith Company. Reed’s…

A: It is primarily Reed's obligation to identify Smith's mistakes, fraud, and illegal actions. It is…

Q: materiality

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

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: Explain how the circumstances under each of the following might reflect failed leadership by…

A: Auditors:  an auditor is a person who is responsible to verify and review the accounting records and…

Q: Why is the risk that the auditor might make a mistake in expressing a modified opinion on financial…

A: Auditing: Auditing can be defined as a process of evaluating the accuracy of the information…

Q: It is always a good idea for auditors to begin an audit with the professional skepticism…

A: option (a) is the correct answer.

Q: Which of the following statements about materiality is considered true? a. Materiality is judged by…

A: Materiality means the items which is important while studying the financial statement and which is…

Q: Select which option is correct. Select one or more: A. The level of professional skepticism can be…

A: Professional skepticism is an attitude that includes a questioning mind, being alert to conditions…

Q: The following are examples of circumstances that may indicate the possibility that the financial…

A: Audit is the process of checking and verifying financial statements of the business so that it can…

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: Which of the following statements is incorrect? A. As the risk of material misstatement in the…

A: It is important for the Auditors to detect the material misstatement which are involved to the…

Q: 1)Which of the following factors most likely would cause an auditor to decline a new audit…

A: Solution Note : As per the Q&A guideline we are required to answer the first question only .…

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…