The financial statements of a company are closed on 31st December, 2020 and auditor has completed documentation before 30th January, 2021. Is it a timely documentation? a. No, it is not timely documentation as per the requirement of ISA b. None of the options c. Time does not matter in the preparation of audit documentation d. Yes, it is timely documentation as per the requirement of ISA

The financial statements of a company are closed on 31st December, 2020 and auditor has completed documentation before 30th January, 2021. Is it a timely documentation? a. No, it is not timely documentation as per the requirement of ISA b. None of the options c. Time does not matter in the preparation of audit documentation d. Yes, it is timely documentation as per the requirement of ISA

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

Chapter14: Completing A Quality Audit

Section: Chapter Questions

Problem 21RQSC

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9-The financial statements of company are closed on 31st December, 2020. The auditor completed documentation of final audit file before 15th January, 2021 in electronic form. He submitted the audit report on 31st January, 2021. Immediately after submission of audit report he deleted the audit file from his computer system. Is the deletion of final audit file valid? a. It is up to the discretion of auditor b. None of the options c. No, it is not valid as per the requirement of ISA d. Yes, it is valid as per the requirement of ISA
24. Which of the following must be done If a resolution has been passed to remove the auditor ? i. Notify the Regulatory Authorities ii. Auditors must deposit statement of circumstances at company's registered office within 21 days of ceasing to hold the office iii. Auditors must deposit statement of circumstances at company's registered office within 14 days of ceasing to hold the office iv. Statement of circumstances must be sent to regulatory authority. a. Only i, ii and iv b. Only i and ii c. Only i , iii and iv d. Only i and iii
9. The 2021 financial statement audit of OMG company began when the trial balance was received from management. You were assigned to audit the accounts payable of the entity. The schedule of liabilities to vendor showed that the company has only five suppliers which account for 90% of the total accounts payable balance. Thus, the audit team has decided to send confirmation letters to those vendors. Upon your further review, you have noted that the amounts provided in the schedule and the trial balance does not balance, but you have noted that the difference is below the materiality threshold. Considering the facts provided, which of the following statements is true? Group of answer choices a. Negative confirmation letters may be sent to the suppliers even if we did not rely on controls. b. Since the difference is below materiality, there is no need to change samples. c. The sampling technique used by the audit associate is invalid because it involves bias. d. There is a sampling…
Problem 1. You were engaged for the first time to audit the FS of Bebeko Corporation for the periodended December 31, 2020. The company started its operation in 2018. In reviewing the books, theauditor discovered that certain adjustments had either been overlook or improperly recorded at theend of years to 2020. Omissions and other failures for each year are summarized below:
(5) Prepare the audit adjustment at December 31, 2021 to correct the amount of machinery, long-term liabilities, and other related accounts
Ma1. John Anderson, CPA, is auditing the financial statements of American Turkey and Taco Cat, a privately owned company, for the year ended December 31, 2019. Anderson plans to complete fieldwork and sign the auditor's report about March 10, 2020. Anderson is concerned about events and transactions occurring after December 31, 2019, that may affect the 2019 financial statements. What general types of subsequent events require Anderson's consideration and evaluation? What auditing procedures should Anderson consider performing to gather evidence concerning subsequent events?
18. Explain about the type of report the Auditor would issue END of the EXAM a. if he disagrees with the management regarding accounting policies and inadequacy of disclosures in financial statements. b. if, during audit, the auditor requests certain documents, which the company refuses to provide.
21-If the management's assessment to evaluate going concern basis of accounting covers less than twelve months from the date of financial statements, what does the auditor do? O a. The auditor shall request management to extend its assessment period to at least fifteen months b. The auditor shall do the assessment for at least twelve months c. The auditor shall do the assessment for at least fifteen months O d. The auditor shall request management to extend its assessment period to at least twelve months
c. Assuming you have checked this account and have detected that client did not record an expense transaction of $60,000 for the accrued salary incurred in June 2020. The client also did not calculate and record the accrued annual leave expenses for the 2020 financial year at the amount of $30,000 - What management assertions are violated (i.e. at risk) - What would you do in relation to the personnel expenses account if you have determined that the issues detected all are errors (an unintentional mistake).
In how many days shall the notice of removal of the auditor is to be send by the company? 21 14 28 30
14-Muscat audit firm is conducting audit for Suhail Bahwan Group since 15 days. Muscat audit firm needs more time to continue the audit because of the size and profile of Bahwan group. The audit firm extended their audit for another 5 days. At the end of audit, the auditors discussed few things in an exit meeting, except: a-Their questions and concerns b-Corrective action plans for the audit issues identified c-Audit results with the management d-The new processes and documentation
20. To correct all errors they discover in the accounting records for the year under audit. The auditors should prepare adjusting journal entries for material items only. Because they are concerned with the fairness, not the preciseness, of the client's financial statements. Select one:TrueFalse