type of audit report
Q: You are the auditor of the Oman Construction Company and have started planning for the 2020 audit…
A: Generally what happens when a person is in rational difficulty, he finds a logical reason to prove…
Q: You were assigned to audit the financial statements of PASADO Company for the year ended December…
A: Cash account is maintained to meet day to day expenses, and such account includes bank balance. The…
Q: A competent auditor has done a conscientious job of conducting an audit, but because of a*clever…
A: Corporate Scandal: It is the actual unethical/illegal behavior by people acting within or on…
Q: During the audit of the Merrill Manufacturing Company,Ralph Pyson, CPA, has become aware of four…
A: Lawsuit: lawsuit is the legal proceeding where civil action is brought by one party against another…
Q: Assume that you are an audit senior in charge of planning the audit of an entity that your firm has…
A: SOLUTION INTERNAL CONTROL IS A PROCESS FOR ASSURING OF AN ORGANIZATIONS OBJECTIVES IN OPERATIONAL…
Q: When planning to perform an audit, an accountant must have a clear understanding of audit risk and…
A: Audit risk It is the risk that financial statements are materially incorrect, even though financial…
Q: Which of the following best describes the auditors' approach to the audit of the ending balance of…
A: The audit seems to be a thorough and comprehensive review of the company's account books. Auditing…
Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing…
A: Subsequent events are the events occurring after the balance sheet date but before the financial…
Q: The audit partner has just advised you that he has been approached to accept the appointment of…
A: Ethical requirements are the principles that are followed to promote traits like fairness,…
Q: Subsequent to the date of the financial statements as part of his post balance sheet date…
A: Given: The condition for the deviation of the standard unmodified opinion of an audit.
Q: Which of the following substantive procedures would auditors most likely perform to obtain evidence…
A: Answer: Option b
Q: The internal control procedures in Dayton Company result in the following provisions.Identify the…
A: Internal control: Internal control is a process which ensures continuous reliability of…
Q: Ms. Sana is an accounting head in the Head office of Oman Steel Factory. The Oman Steel Factory is…
A: 1) The 3 interpretations of financial statement are: a) Reduction and decrease in the Sales and…
Q: Abbott & Partners audit firm has audited Pretty Valley Shire council for two years, performing both…
A: Audit evidence means supportings or documents used for the purpose of audit checking and…
Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing…
A: Subsequent event The events that occur before issuing the financial statement but after the…
Q: Assume that you are an audit senior in charge of planning the audit of an entity that your firm has…
A: Internal control appears to be the technique for managing the firm's risk and ensuring the firm's…
Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing…
A: a) Issuance of shares through a private placement offer becomes a part of the Type 2 event. This is…
Q: During a consulting engagement involving the development of a new accounts payable system, an…
A: Answer: The auditor reviewing the disbursements process should b. Report the control weakness to…
Q: Five months after issuing an unqualified audit opinionand an unqualified opinion on internal…
A: Subsequent events are the events which occur between the date of the financial statements and the…
Q: Which of the following types of audit evidence provides the least assurance of reliability?
A: Answer: Option B
Q: You are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You…
A: An audit is a process of checking and verifying the books of account and financial information of…
Q: The internal auditors of Brown Electrical Company report to the controller. Due to changes made in…
A: Review measures – the justification having the organization's fi nancial proclamations examined by…
Q: You are involved with the audit of Jelco Company for year 1 and have been asked to consider the…
A: Auditing: Auditing is the process by which assertions made by management about financial…
Q: nancial information you determine that there is a material misstatement in the accounts receivable…
A: INDEPENDENT AUDITOR’S’ REPORT TO THE MEMBERS OF FREEFALL INCORPORATEDReport on the Standalone…
Q: Field, CPA, is auditing the financial statements of Miller Mailorder, Inc. (MMI). Field has compiled…
A: inherent risk Inherent risk is the likelihood of misfortune dependent on the idea of an…
Q: Which of the following circumstances would most likely cause an audit team to performextended…
A: Audit procedures: These are the methods, techniques, and processes that are performed by the auditor…
Q: Golden bank recently appointed the accounting firm Sanford,Son and Golrich as the banks auditors.…
A: "Since you have asked multiple sub part question we will solve the first three question for you. If…
Q: An audit manager has led the audit of Topaz Ltd for the last three years. Evidence of a fraud…
A: Auditing It refers to the process under which a person who is called an auditor inspects, examines a…
Q: For the following independent situations, assume that you are the audit partner on the engagement:…
A: Audit opinion refers to the decision of the auditor which he takes after evaluating the financial…
Q: Which of the following engagement planning procedures would most likely assist the auditor in…
A: Answer: Option d.
Q: Which of the following circumstances would most likely pose the greatest risk inaccepting a new…
A: Auditors consider many factors before accepting an audit engagement. The factors may also vary from…
Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing…
A: a. This is a subsequent event because the issue of the private placement will occur before the date…
Q: You are meeting with executives of Cooper Cosmetics Corporation toarrange your firm’s engagement to…
A: (a)
Q: responsibilities of directors and auditors
A: In case of destruction of accounting records by fire, audit has to depend on available documents and…
Q: RST Inc. completed its fiscal year on December 31. Near the end of the fiscal year, the company’s…
A:
Q: For the following independent events, assume that each has a material effect on the financial…
A: An audit of financial statements is an examination conducted by an independent auditor on the…
Q: After fieldwork audit procedures are completed, a partner of the CPA firm who has not been involved…
A: As per Standard of Auditing the main focuses of Second Review is Confirmation of Financial…
Q: Assume a third party such as a successor audit firm quickly discovers a fraud that the predecessor…
A: Ethics can be defined as a conduct adopted by an individual in making the selection between right…
Q: As one of the year-end audit procedures, the auditor instructed the client's personnel to prepare a…
A: Bank confirmations are part of audit procedures. At every year bank balance as per cash book should…
Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing…
A: A subsequent event can be defined as an event which occurs after the date of account closing but…
Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing…
A: A subsequent event can be defined as an event which occurs after the date of account closing but…
Q: Which of the following is NOT a reason the auditor performs some substantive procedures at an…
A: solution interim audit An auditor may choose to perform the audit before the end of…
Q: In this situation, what type of audit report could your team possibly give to Bank Oman? a.…
A: Auditor: An auditor is a person or a group of people who is responsible for conducting an audit of…
Q: Which of the following substantive procedures should auditors ordinarily perform regarding…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: At the closing meeting, a representative of the top management of the auditee organisation informs…
A: It is not correct from side of representative of management to ask to re-examine the process during…
For the following independent and material situations, assume that you are the audit partner on the engagement:
- There was a fire that broke out a month before the year-end date. The fire has destroyed most of the accounting records and underlying receipts and invoices. Management has reconstructed the accounting records using its bank statements and other means, but they are uncertain if all material matters have been taken into account and they would like to wait until after a couple of months when subsequent receipts may assist them to compile further outstanding items. You have serious doubts as to the accuracy of the compiled figures and have been unable to verify any of the material balances.
- Kieko Co. Ltd has prepared financial statements but has decided to exclude the statement of cash flows. Management explains to you that the users of their financial statements find this statement confusing and prefer not to have it included.
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state what type of audit report are you going to issue. Explain your answer.
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- As one of the year-end audit procedures, the auditor instructed the client's personnel to prepare a confirmation request for a bank account that had been closed during the year. After the client's treasurer has signed the request, it was mailed by the assistant treasurer. What is the major flaw in this audit procedure? a. The confirmation request was signed by the treasurer. b. Sending the request was meaningless because the account was closed before the year end. c. The request was mailed by the assistant treasurer. d. The CPA did not sign the confirmation request before it was mailed.Which of the following circumstances would most likely cause an audit team to performextended procedures?a. Supporting documents are produced when requested.b. The client made several large adjustments at or near year-end.c. The company has recently hired a new chief financial officer after the previous oneretired.d. The company maintains several different petty cash fundsYou have accepted the engagement of auditing the financial statements of the C. Reis Company, a small manufacturing firm that has been your client for several years. Because you were busy writing the report for another engagement, you sent a staff accountant to begin the audit with the suggestion that she start with accounts receivable. Using the prior year’s audit documentation as a guide, she prepared a trial balance of the accounts, aged them, prepared and mailed positive confirmation requests, examined underlying support for charges and credits, and performed other work she considered necessary to obtain evidence about the validity and collectability of the receivables. At the conclusion of her work, you reviewed the audit documentation she prepared and found she had carefully followed the prior year’s audit documentation.Required:The opinion rendered by auditors states that the audit was made in accordance with generally accepted auditing standards. Identify the important…
- During your annual audit of Walker Distributing Company, your assistant, Jane Williams, reports to you that, although a number of entries were made during the year in the general ledger account Notes Payable to Officers, she decided that it was not necessary to audit the account because it had a zero balance at year-end. Required: Do you agree with your assistant’s decision? Discuss.Consider the following independent and material situations:(i) The client, with reasonable justification, has changed its method of accounting for all factory and office equipment. The effect of this change is not material to the current year financial reports, but is likely to have a material effect in future years. The client will not disclose this change because of the immaterial effect on the current year financial reports.(ii) The audit was staffed primarily by three new audit assistants and a relatively inexperienced audit senior. The audit manager found numerous errors during the conduct of the audit and developed very long “to-do” lists for all members of the audit team to complete before the audit was concluded. Although the manager originally doubted the staff’s understanding of the audit procedures, by the time the audit was finished, he concluded that the new auditors did understand the client and the audit process and that no material errors existed in the financial…(J) Kim Bryan, a new staff auditor, is confused by the inconsistency of the three audit partners to whom she has been assigned on her first three audit engagements. On the first engagement, she spent a considerable amount of time in the audit of cash disbursements by examining cancelled cheques and supporting documentation, but almost no time was spent on the verification of property, plant, and equipment. On the second engagement, a different partner had her do less intensive tests in the cash disbursements area and take smaller sample sizes than in the first audit even though the company was much larger. On her most recent engagement under a third audit partner, there was a thorough test of cash disbursement transactions, far beyond that of the other two audits, and an extensive verification of property, plant, and equipment. In fact, this partner insisted on a complete physical examination of all property, plant, and equipment recorded on the books. The total audit time on the most…
- You are an audit manager at Hall & Associates, who have been approached toconduct the audit of Computer Games Ltd (CGL), a manufacturer of interactivecomputer games, for the year ended 30 June 2019.Hall & Associates has not previously audited CGL’s financial report, although ithas undertaken other types of engagements for CGL. Last year CGL hired Hall& Associates to assist in the redesign of CGL’s accounting software to ensurethat internal controls over internet sales were adequate to ensure theconfidentiality of customer data and accuracy of recording. The new softwarewas implemented at the beginning of the current year and appears to beworking satisfactorily. As part of this year’s audit, you expect to review theinternal controls at CGL, including the controls within the IT systems.As part of CGL’s financing arrangements with its bank, Easymoney Ltd, it hasa loan covenant that stipulates that the quick asset ratio cannot be less than1:1 or Easymoney Ltd has the right to…Assume that you are an audit senior in charge of planning the audit of an entity that your firm has audited for the previous four years. During the audit planning meeting with the manager and partner in charge of the engagement, the partner noted that the entity recently adopted an IT-based accounting system to replace its manual system. The manager and partner have limited experience with IT-based accounting systems and are relying on you to help them understand the audit implications of the entity's change. Consequently, they have askd you to respond to a few concerns regarding automated accounting systems. Required: a. In previous years, the audit firm has relied heavily on substantive procedures as a source of audit evidence for this entity. Given that the entity now has changed its accounting system, what are some of the factors that should consider when deciding whether to move to a reliance strategy? b. Under what conditions should the audit firm consider engaging an IT…Assume that you are an audit senior in charge of planning the audit of an entity that your firm has audited for the previous four years. During the audit planning meeting with the manager and partner in charge of the engagement, the partner noted that the entity recently adopted an IT-based accounting system to replace its manual system. The manager and partner have limited experience with IT-based accounting systems and are relying on you to help them understand the audit implications of the entity's change. Consequently, they have askd you to respond to a few concerns regarding automated accounting systems. a. In previous years, the audit firm has relied heavily on substantive procedures as a source of audit evidence for this entity. Given that the entity now has changed its accounting system, what are some of the factors that should consider when deciding whether to move to a reliance strategy? b. Under what conditions should the audit firm consider engaging an IT specialist to…
- Roland Company, a retail store, has utilized your services as independent auditor for several years. During the current year, the company opened a new store, and in the course of your annual audit, you verify the cost of the fixtures installed in the new store by examining purchase orders, invoices, and other documents. This audit brings to light an understated invoice nearly a year old in which a clerical error by the supplier, Western Showcase, Inc., caused the total of the invoice to read $28,893.62 when it should have read $82,893.62. The invoice was paid immediately upon receipt without any notice of the error, and subsequent statements and correspondence from Western Showcase, Inc., showed that the account with Roland Company had been paid in full. Assume that the amount in question is material in relation to the financial position of both companies. What action should you take in this situation?Roland Company, a retail store, has utilized your services as independent auditor for several years. During the current year, the company opened a new store, and in the course of your annual audit, you verify the cost of the fixtures installed in the new store by examining purchase orders, invoices, and other documents. This audit brings to light an understated invoice nearly a year old in which a clerical error by the supplier, Western Showcase, Inc., caused the total of the invoice to read $28,893.62 when it should have read $82,893.62. The invoice was paid immediately upon receipt without any notice of the error, and subsequent statements and correspondence from Western Showcase, Inc., showed that the account with Roland Company had been paid in full. Assume that the amount in question is material in relation to the financial position of both companies. What action should you take in this situation? If the client should decline to take any action in the matter, would you insist…Roland Company, a retail store, has utilized your services as independent auditor for several years. During the current year, the company opened a new store, and in the course of your annual audit, you verify the cost of the fixtures installed in the new store by examining purchase orders, invoices, and other documents. This audit brings to light an understated invoice nearly a year old in which a clerical error by the supplier, Western Showcase, Inc., caused the total of the invoice to read $28,893.62 when it should have read $82,893.62. The invoice was paid immediately upon receipt without any notice of the error, and subsequent statements and correspondence from Western Showcase, Inc., showed that the account with Roland Company had been paid in full. Assume that the amount in question is material in relation to the financial position of both companies. If the client should decline to take any action in the matter, would you insist that the unpaid amount of $54,000 be included in…
