Why determination of Materiality is a matter of Auditor Judgment? Explain both Qualitative and quantitative materiality assessments.

Q: If an analytical procedure confirms audit findings from other procedures, it provides persuasive…

A: Solution concept                 analytical procedure means the procedure of comparing the…

Q: Define materiality as it is used in audit reporting. What conditions will affect the auditor’s…

A: IAS 320 Materiality in planning and performing an audit, describes the omission or misstatement that…

Q: Define risk of material misstatement. At what level of the financial statements do auditors measure…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: In auditing liabilities and expenses, the auditor is generally more concerned about the management’s…

A: Ans. There are various kinds of assertions which needs to be checked while auditing. Some of the…

Q: What are going-concern uncertainties? What is the auditors’ responsibility for evaluating…

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Q: How might an auditor individual characteristics affect his or her professional judgment about…

A: The concept of Materiality refers to the recognition of some matters which either individually or…

Q: Which one below is not an example of auditors'substantive testing? Select one: a. Controls testing.…

A: Substantive testing is such an audit procedure that is used for examination of financial statement…

Q: hat are the factors upon which reliable and relevant audit evidence depends o

A: Information that backs up and corroborates management's financial statement declarations or internal…

Q: Identify the type of evidence the auditor would gather in assessing the integrity of management?…

A: Auditor is the person who is responsible for auditing and verifying books of accounts and records of…

Q: Understand auditors’ responsibility forsubsequent events and subsequentlydiscovered facts

A: Subsequent Event: A subsequent event is an event or transaction that occurs after the date of the…

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

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Q: What are the requirements for referencing a Component Auditor in the Audit Report?

A: Definition:   Component auditor: The component auditor performs the audit of the component of the…

Q: auditor obtains sufficient understanding of the internal control structure

A: Auditing is done to verify whether the underlying financial statements show true and fair view of…

Q: What are the fundamental requirements that must be completed before auditors may produce an…

A: The following is the definition of an unqualified audit opinion: An audit opinion is a verification…

Q: the difference between the principles and application in auditing?

A: The answer for the theory question on the difference between the principles and application in…

Q: In referencing professional standards, what factors should auditors consider in evaluating potential…

A: Going concern is an accounting concept that makes the assumption that business will be able to…

Q: Explain why determination of materiality is a matter of auditor judgment. Refer to both qualitative…

A: The audit staff’s correct determination of materiality is a matter of sound professional judgment…

Q: Why auditors gather evidences?

A: Auditing is basically an inspection or checking of books of accounts maintained by the business.…

Q: What factors should an auditor consider prior to accepting anengagement? Explain.

A: Introduction: A financial audit is a purposive inspection and assessment of the financial statements…

Q: How does the quality of audit evidence vary depending on who has provided it?

A: Audit evidence is primarily the data and accounts of the client and its associated third parties,…

Q: Explain what is meant by lapping and discuss how the auditorcan uncover it. Under what circumstances…

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Q: What are auditors’ reporting options when going-concern uncertainties are noted?

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Q: Explain what is meant by the term acceptable audit risk. Whatis its relevance to evidence…

A: Accepted Audit Risk:- When the auditor is willing to take risk of giving an unqualified opinion for…

Q: What are analytical procedures? Describe how they can be used as substantive tests in an audit

A: Analytical procedures are the procedure used by auditor at planning and execution stage to analysis…

Q: How might an auditor's individual characteristics affect his or her professional judgments about…

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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: a) Explain why determination of materiality is a matter of auditor judgment. Refer to both…

A: Since you have asked multiple questions we will solve the first question for you,If you want any…

Q: In auditing receivables, what are the audit objectives and how would you be performed to arrive at…

A: Auditing implies an exhaustive and formal review of your records. Auditors give extraordinary…

Q: What are the auditor's responsibilities for 'going concern assumptions’'?

A: Going concern assumption is one of the concept of accounting, under which it is assumed that the…

Q: .“It is the auditors’responsibility to gather sufficient appropriate evidence to reachtheir opinion.…

A: .“It is the auditors’responsibility to gather sufficient appropriate evidence to reachtheir opinion.…

Q: How is the directional risk of inventories applied in determining the appropriate audit procedures…

A: Answer: During the audit of any balance sheet items, proper audit procedures are to be gathered to…

Q: s and obligation assertion when auditing payables and contrast this with the audit of asset…

A: An auditor is a person or a company hired by a company to conduct an audit. A person must be…

Q: The auditors' report is influenced by the idea of materiality.

A: This question explains about the auditors' report is influenced by the idea of materiality.

Q: What are the requirements from Sarbanes-Oxley regarding using the same auditor

A: Audit is an independent examination of financial information of any entity, whether profit…

Q: Define the danger of substantial misrepresentation. RMM is measured by auditors at what level of the…

A: Introduction : Because you posed a question with numerous subparts, we will solve the first three…

Q: The sufficiency and competency of evidential matter ultimately is based on the: Select one: a.…

A: An audit is a process of checking and verifying the books of account and financial information of…

Q: Why do auditors focus on completeness of expenditures as a significant account and relevant…

A: Management assertions are the facts which are applied by the management while preparing the…

Q: What basic conditions must be met before auditors can issue an unqualified report.

A: Meaning of Unqualified Audit Opinion An audit opinion is a verification that accompanies financial…

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: How does a very material GAAP issue affect the Audit Report?

A: Audit opinions are the opinions given by the auditor about the financial statements. There are…

Q: The size of the subset of items the auditor examines is primarily a function of materiality and the…

A: Audit sampling is the application of an audit procedure to less than 100 percent of the items within…