What is tolerable misstatement? How do auditors use it when deciding whether account balancesare fairly recorded?

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

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Q: What should an auditor do if they discover they have forgotten to perform a substantive procedure?

A: Audit Procedure: A specific procedure undertaken by an auditor to procedure evidence in a particular…

Q: Which analytical procedures are most important in verifyingnotes payable? Which types of…

A: Definition: Liabilities: The claims creditors have over assets or resources of a company are…

Q: Describe the purpose and give examples of audit procedures in the search for unrecorded liabilities.

A: The search of unrecorded liabilities is the set of procedures designed to yield audit evidence of…

Q: Why do auditors consider inventory errors pervasive?

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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: It's not clear why pre-numbering the reports received is essential. How may an auditor verify a…

A: Dialogue Systems are used in natural language processing to do the following: Dialogue systems are…

Q: Auditors of financial statements are designed to obtain reasonable assurance of detecting material…

A: The auditor is required to obtain reasonable assurance that financial statements aa a whole are free…

Q: Why is it necessary to pre-number reports received? In what way might an auditor examine a claim…

A: For natural language processing, the use of Dialogue Systems :

Q: Why are the confirmation of payables is not a required audit procedure as it is with receivables?

A: The main objective of auditors is to conduct a thorough verification of the financial statements and…

Q: The risk that material errors will not be detected is directly controllable by the auditor through…

A: Auditor: An auditor is a person or a group of people who is responsible for conducting an audit of…

Q: What is the tolerable rate of deviation? How does the audit team use it when deciding whether torely…

A: Tolerable rate of deviation: Tolerable rate of deviation is the maximum rate of deviation is used by…

Q: The SEC notes, with respect to materiality, that Group of answer choices Professional judgment…

A: The auditor is responsible for forming an opinion on the financial statement audited. The auditor…

Q: In which of the following circumstances would an auditor expect to find that an entity had…

A: Definition: Audit: Audit is the process of verification of the compliance of the financial…

Q: When making a decision about the dollar amount in an account balance based on a sample, the audit…

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Q: Distinguish between the existence and completeness balance-relatedaudit objectives. State the effect…

A: An Audit is a process where the auditors’ process & identifies the misstatements or the risk…

Q: Why do fraud examiners handle information in a different manner than auditors? Why is thisimportant?

A: Fraud examiners handle information in a different manner than auditors, in order to minimize the tax…

Q: The risk that the auditors’ own testing procedures will lead to the decision that…

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Q: which of the following regarding errors is correct Select one: a. it is easier for the auditor to…

A: Ans. Errors can be of two types - i. Intentional error ii. Unintentional error Intentional errors…

Q: What is the general presumption for auditing Ending Balances?

A: Auditing:                   It is a systematic verification of the books of accounts of an…

Q: What is the upper limit on misstatements? What information does it provide the auditor?

A: A Misstatement is a statement having concealed facts or misleading information regarding the facts,…

Q: To assess the risks of material misstatement with respect to Owners’ Equity Accounts, please…

A: The main thing for  implementing controls  are to avoid frauds in the organisation. Risk in auditing…

Q: Which of the following risk types increase when an auditor performs substantive analytical audit…

A: Analytical Audit Procedures: Analytical procedure is a method by which standard balances are…

Q: Which of the following characteristics is not a measure of the appropriateness of audit evidence?…

A: Relevance and reliability are the two most important characteristics of audit evidence.

Q: How do the professional audit standards differ for (a) errors, (b) frauds, (c) direct-effect…

A: Errors:   Error refers to omission of amounts or misstatement or disclosure in financial statement.…

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

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Q: Which one of the following statements is most appropriate to Control risk? Susceptibility of account…

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

Q: Which internal controls should the auditor be most concernedabout in the audit of notes payable?…

A: It is very important for the organization to evaluate the performance of the company from time to…

Q: Explain how the auditor determines tolerable misstatement for MUS

A: Monetary unit sampling (MUS) is a quantitative sampling process which is often referred to as dollar…

Q: Why is it important to emphasize the existence assertion when auditing accounts receivable?

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Q: In deciding upon the acceptable risk of incorrect acceptance for an account, an auditor considers…

A: Auditing is the procedure of finding the errors and misstatements presented in the financial…

Q: The probability that, in the absence of internal controls, material errors or frauds could enter the…

A: Inherent risk :       As the name suggests, it is the risk which is inherent in the omission or…

Q: How could the auditors have determined that the inventory balance was materially misstated? What…

A: Auditor is the independent qualified personnel who is a professional certified CPA. Auditor is…

Q: How do contingent liabilities effect the audit?

A: Contingent liability is a liability that may occur depending on the outcome of future uncertain…

Q: What is the auditing definition of error and fraud, and how should the auditor deal with each?

A: This question explains about the auditing definition of error and fraud,  auditor deal

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

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Q: When completing the audit of internal controls for an issuer, the severity of an internal control…

A: Internal control is the managements’ effective and efficient controls for achieving goals and…

Q: What audit procedures are most likely to be used to verify accountsreceivable written off as…

A: Audit procedure:   Audit procedures are the processes, techniques, and methods that auditors perform…

Q: How does “fraud examination”differ from “forensic accounting”?

A: Fraud  - This is an Intentional act committed to gain something illegal by omission or  commission…

Q: when the auditor want to assure that There are no unrecorded receivables. What assertion he or she…

A: Answer  Completeness means All transactions are recorded and all related disclosures are included in…

Q: How to ensure that overstatement as well as misstatements of account balances due to redundancy and…

A: Overstatement of account balances means reporting the account balances at an amount above the actual…

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…

Q: allowance for doubtful

A: Correct answer :- Right and Obligations.

Q: Did the preparation of checks violate the auditors’ Code of Ethics?

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