Under what circumstances would an auditor choose to confirminformation such as the right of return or special sales terms in addition to the customerbalance?

Q: Does the reporting relationship results in a problem of independence of the internal audit depa

A: Reporting relationship is the term which is defined as the accountability structure within the firm…

Q: Distinguish between errors and irregularities. Which do you think concern auditors the most?

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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: The audit of revenue recognition generally involves significant audit risk for all of the following…

A: Answer: Concept: Audit is an independent investigation performed to identify any loopholes in…

Q: Why do auditors use a business risk approach ?

A: The factors that prevent or hinder the organization to achieve its goal or objectives, are termed as…

Q: How might financial incentives in the form of client services unconsciously introduce auditor bias…

A: Audit: Audit is the process of verification of the compliance of the financial statements.

Q: Why is the Auditing Standards Board’s set of management assertions important to auditors? Dothese…

A:

Q: What types of matters would result in the auditors’ report being modified for consistency?

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Q: What is the difference between Error and Fraud (as defined in auditing) and how shall the auditor…

A: Definition: Auditor: The auditor is an accounting professional hired by a company to review the…

Q: What steps has the external auditing profession taken to minimize potential bias toward independent…

A: The auditors are appointed to provide their opinion on the financial reports examined. The auditor…

Q: Why do auditors use the words "present fairly

A: Present Fairly Present fairly is a term used inside the text of an audit report back to indicate…

Q: How many the specific audit tests for the Sales & Revenue Cycle?

A: Sales & Revenue Cycle: This cycle  is made up of  various classes of transactions with respect…

Q: Which of the following is least likely to be a factor that might indicate to an auditor that an…

A: special considerations are used by auditors where there is a high risk of material misstatements in…

Q: Whare are the disadvantages of internal goverment audits

A: Given: The disadvantages of the internal public audit.

Q: What steps should auditors take if during a compilation engagement they become aware that the…

A: Auditing:   Auditing is a gathering of information and evaluation of evidence as to report on the…

Q: Why do auditors focus on revenue as a significant account and the occurrence of revenue as a…

A: Revenue cycle records all the transactions that originate from selling a product and lead to…

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: According to Professional Judgment, one of the environmental factors affecting judgment is the "rush…

A: Rush to Solve Judgement Trap Rush to solve judgement trap which are arising many situation in the…

Q: What is tolerable misstatement? How do auditors use it when deciding whether account balancesare…

A: A Tolerable misstatement is the financial statement item amount that differs from the correct amount…

Q: Which of the following is NOT an example of externally generated evidence sent directly to the…

A: Audit evidence refers to data obtained by an auditor for arriving at his judgment while performing…

Q: what happens when auditor is being irresponsible to the company?

A: Auditing is a process in which an auditor checks the accounts and financial statements of the…

Q: Why do you think that inherent and control risk is responsible for the audited company(client) and…

A: Audit means checking, verifying and examining all the financial records and information to ensure…

Q: What is  the relationship between the external auditor and the organization. What steps have been…

A: An external auditor is the person or firm who verify the financial statements of the organization…

Q: Explain how ratio analysis and industry comparisons can be useful to the auditor identifying…

A: Ratio Analysis is a tool by which an auditor can examine the data for the two financial years and…

Q: What are theresponsibilities of the company’s auditor?

A: An auditor is an independently qualified person who is appointed to give shareholders an…

Q: The amount of subjectivity involved in establishing fair value estimates can be complex for…

A: GIVEN   The amount of subjectivity involved in establishing fair value estimates can be complex for…

Q: In testing for lower-of-cost-or-market, the auditor is gathering evidence to support which of the…

A: The audit is an examination of the financial statement of the company that helps to find the errors…

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: How does the concept of materiality influence the auditors’ report?

A: Auditing: Auditing is a systematic process wherein the auditor investigates the financial…

Q: Why should receiving reports be prenumbered? What assertion would an auditor test using thereceiving…

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Q: what are the auditor Rules for Independence regarding the services they can offer the same client?

A: Auditing is the process of evaluation of companies' financial statements and reports by the auditor…

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: What are the most common revenue-recognition abuses identified by auditors?

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Q: Your audit client is under intense pressure to meet an earnings target. Which transaction assertion…

A: There are various types of transaction assertions. These includes; Accuracy, Completeness,…

Q: Why is the audit of revenue recognition riskier for a new company

A: According to the GAAP, the companies should not claim any revenue until they have provided the…

Q: Which of the following statements is correct about the reliability of audit evidence? a.…

A: Audit evidence means evidence or supportings that is obtained by auditor during the course of audit.…

Q: Explain the role of sales volume, cost, and profitability in an audit? How do sales volume, cost,…

A: Sales Volume Audit analysis means a study of the net sales section of the profit and loss statement.…

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: Where would an auditor find the proper authorization that indicates it is okay to pay a vendor?

A: Auditor: Auditors are defined as officials appointed by an organization to monitor and analyze the…

Q: Define and give examples of off-balance-sheet information. Why should auditors be concerned with…

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Q: Critically evaluate whether the manner in which the market for the supply of audit services is…

A: An audit is the study of an organization's financial report - as presented in the annual report - by…

Q: Discuss the objective of eliminating the receiving function.What accounting/audit problems need to…

A: Auditing is the process of ensuring that an entity's financial records are correct and fairly…

Q: In applying a top-down, risk-based approach to an audit, should the auditor start with the ending…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Critically evaluate whether the manner in whic

A: An audit is the examination of an organization's financial statements - as provided in its annual…

Q: Why should receiving reports be prenumbered in the first place? With the help of the receiving…

A: According to management, this is true. A managerial assertion is a claim made by a company's top…