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

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

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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The external auditor of a company has certain requirements due to Sarbanes-Oxley. Which of the following best describes these requirements? A. The auditor is required to only report weaknesses in the internal control design of the company he or she is auditing. B. The auditor must issue an internal control report on the evaluation of internal controls overseen by the Public Company Accounting Oversight Board C. The auditor in charge can serve for a period of only two years. D. The Public Company Accounting Oversight Board reviews reports submitted by the auditors when no evaluations have been performed.
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. Only i, ii and iv Only i and ii Only i and iii Only i , iii and iv
14-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
Which of the following is NOT an implication of Section 302 of SOX?a. Auditors must determine whether changes in internal control have materially affected, or are likely to materially affect, internal control over financial reporting.b. Auditors must interview management regarding significant changes in the design or operation of internal control that occurred since the last audit.c. Corporate management (including the CEO) must certify monthly and annually their organization’s internal controls over financial reporting.d. Management must disclose any material changes in the company’s internal controls that have occurred during the most recent fiscal quarter.
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
46 Delano Co. is required to file its annual audited financial statements with the Government Accountability Office, and Smith & Olson, CPAs have been hired to perform the engagement. Which of the following nonaudit services provided by Smith & Olson would NOT impair the firm's independence? I. Accepting responsibility for designing, implementing, or maintaining internal control. I. Accepting responsibility for the management of an audited entity's project. III. Directing and accepting responsibility for the actions of the audited entity's employees in the performance of their routine, recurring activities. I. lI. and III 2. I only 3. Il only 4. III only Please donot provide solution in image format and it should be in step by step format and provide solution asap
On resignation of the Auditor , the statement of circumstances should be sent by i) Company to Regulatory Authority ii) Auditors to Regulatory Authority iii) Company to everyone entitled to receive a copy of accounts iv) Company to Audit Committee Only ii i and iii only ii and iii only i, ii and iii only
42-Mr. X is an auditor of XYZ Company. During the course of audit, he found that Mr. Y who was one of the executive directors of the company raised OMR 15,000 from the debenture holder which was beyond his authority. On confirming, he replied by e-mail that it was later approved by board. Can the e-mail received from executive director be considered as valid audit document? O a. Unable to decide as the information is not sufficient O b. No, it cannot be considered as valid audit document O c. Only the evidence received in hard form is valid o d. Yes, it can be considered as valid audit document
The accountant's report that expresses an opinion on an entity's internal controls would not include a A. specific date that the report covers rather than a period of time. B. brief explanation of the broad objectives and inherent limitations of internal control. C. description of the scope of the engagement. D. statement that the entitiy's internal controls are consistent with that of the prior year after giving effect to subsequent changes.
46-Which paragraph of the audit report contains that the entity continues to carry on its operations in the foreseeable period of twelve months. O a. Going concern basis of accounting O b. Introductory paragraph O c. Other legal and regulatory requirements O d. Key Audit matters
The Sarbanes-Oxley Act a. created the Private Company Accounting Board. b. allows accountants to audit and to perform any type of consulting work for a public company. c. stipulates that violators of the act may serve 20 years in prison for securities fraud. d. requires that an outside auditor must evaluate a public company’s internal controls.
Which of the following statements is true of the Sarbanes−Oxley Act? A. All private and foreign companies must issue an internal control report evaluated by an outside auditor. B. Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients. C. Those who commit securities fraud must be sentenced to 10 years in prison. D. The Public Company Accounting Oversight Board oversees the work of auditors of public companies.