Which of the following factors most likely would cause a CPA not to accept a new audit engagement? Management's reluctance in making all financial records available to the CPA. The CPA's inability to review the predecessor auditor's working papers. The CPA's lack of understanding of the entity's operations and industry O Management's reputation for failing to provide schedules to prior auditors on a timely basis.

Q: Which of the following would be inappropriate during the risk assessment procedure of the audit…

A: We shall answer the first question, since the exact question wasn't specified.Please resubmit a new…

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: Which of the following best describes the effect of a contingent fee arrangement on the auditor's…

A: The contingent fees rule has been defined in Section 1.510 of the AICPA’s revised Code of…

Q: CPA not to accept a new audit engagement

A: A CPA may not accept new audit engagement if he suspects that there will be a restriction in scope…

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: Which of the following is correct about unmodified audit opinion? O a. Opinion issued once auditors…

A: Auditing: The process of examining the accuracy of the information reported in the books of accounts…

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: Which of the following statements is not true with respect to the performance principle?a. Auditors…

A: Answer:   Option a.

Q: When an auditor concludes that there is a significant doubt on the entity's ability to continue as a…

A: Going Concern basis: An entity prepares financial statements on a going concern basis ,that is it is…

Q: Examples of unmodified opinions which contain modified wording (without adding anemphasis-of-matter…

A: Answer:   Option D.

Q: Why might adverse opinions on internal control over financial reporting prompt Daily Journal to…

A:

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: Sarbanes-Oxley [SOX] legislation, greatly restricts the types of nonaudit services that auditors may…

A: Non-audit services provided by the auditor to an audit customer, including its affiliates, are…

Q: When planning an audit, which of the following is not a factor that affects auditors’ decisions…

A: An auditor is a professional body appointed by firm or enterprise to examine books of accounts and…

Q: Provide a detailed example as to what might cause an auditor/audit firm to decline taking on a new…

A: Audit engagement: Audit engagement is the act done by the auditor/audit firm to accept the audit of…

Q: When a contingency is resolved subsequent to the issuance of audited financial statements, which…

A: A contingency is a character or any rationally possible losses and any pledges, including highest…

Q: Where the auditor has assessed the risk of material misstatement of trade creditors as low, the…

A: Auditing is a procedure under which an auditor is appointed to check the accuracy of the financial…

Q: Which of the  factors below does not have to be  considered by the auditor in determining the Key…

A: Key audit matters (KAM) are the significant matter which was found during the audit of the 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: Which of the following is least likely to be required on an audit?    Evaluate the business…

A: Which of the following is least likely to be required on an audit?    1. Evaluate the business…

Q: matters are communicated to those charged with governance at the end of an audit

A: Third option is wrong because the expected modifications to the audit report are based on the…

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: explain each choices. Reportable conditions are matters that come to an auditor's attention and that…

A: Internal  Control: An entity's board of directors, management, and other people are the ones who…

Q: Which of the following situations will not result in modification of the auditor's report because of…

A: The scope limitation is the restrictions in the audit which is caused by the client or issues that…

Q: After the audit report release date, auditors determine that an important auditing procedure was…

A: After the audit report release date, auditors determine that an important auditing procedure was…

Q: Which of the following statements is incorrect?

A: In order to authenticate the financial statements which has been prepared by the company and in…

Q: statement would appear in the:   a. Engagement letter.

A: The right answer is option c.  Management representation letter.

Q: Why should auditors act as though there is always a potential conflict of interest between the…

A: Holding is a belief that any sort of potential conflict of interest exists between the auditor and…

Q: An auditor is required to communicate significant deficiencies in internal control to Audit…

A: Internal Control: An entity's board of directors, management, and other people are the ones who…

Q: materiality

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

Q: Prior to the acceptance of an audit engagement with a client who has terminated the services of the…

A: The question is related to AU Section 315 Communications between predecessor and Successor Auditors.…

Q: What is the appropriate nature of opinion when the auditor is unable to obtain sufficient…

A: Auditor's opinion is a report based on the audit of a company's financial statement. Therefore, it…

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: Discuss and accounting firms responsibilities when it is retained to issue such a report.

A: When an accounting firm is engaged to provide an objective report on proper accounting treatment in…

Q: Describe the audit opinion that should be given and explain why. a)When the client is not a going…

A: Going concern assumption is a basic assumption used for the preparation of financial statements.…

Q: Discuss the concept of professional skepticism and its importance in audit.

A: Professional skepticism is defined as a questioning mindset, being aware of events that may signal a…

Q: Which of the following statements is not true with respect to written representations?a. The failure…

A: Introduction: Written representations are acquired by the auditors from the management in the form…

Q: What steps do you believe auditors should take if the client is not pleased with the type of audit…

A: Here discuss about the details of the Steps which are taken by the Auditors whether the Client are…

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: Which one of the following is NOT a duty of the auditor? Duty to report on any violation of law Duty…

A: The duties of an Audi have been laid down by the companies Act , 2013, providedd in section 143.

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: Which of the following factors most likely would cause an auditor not to accept a new audit…

A: Internal Controls: Internal controls are the principles, procedures and rules applied by a company…

Q: With regard to corrective action on audit results, which of the following is not theinternal…

A: Internal auditor is the one who provides independent and correct evaluation of operating and…

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…