Why is it necessary to obtain corroborating evidence for inquiry and for observation?

Q: The two characteristics of the appropriateness of evidence are a. relevance and reliability. b.…

A: The management of the company is the main responsible for preparing the financial statements which…

Q: When the CUER exceeds the TER, what courses of action areavailable to the auditor? Under what…

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

Q: What have been the results of empirical tests of the dividendtheories?

A: Answer: Constructing a perfect empirical test of the relation between pay-out strategy and the…

Q: In other words, does the audit opinion extend to "other data"? I'd want to know more.

A: The term "audit" refers to the practice of examining a company's financial statements to see whether…

Q: Why is it important to complement intuition with systematic study?

A: Organizational behaviour is the study of understanding how people behave within groups. The…

Q: Circumstantial evidence

A: Correct Answer :- A Circumstantial Evidence

Q: Inquiry and observation are applicable to gather evidence about a policy or procedures that does not…

A: Solution : Concept Inquiry               Inquiry as process of audit means the process of seeking…

Q: What analytical procedures might be informative regarding the existence assertion?

A: The existence of assertion is the assertion that liabilities, assets and shareholders equity…

Q: Explain in detail, using examples where possible, the difference between hedging, speculation

A: In the world of finance and investments hedging and speculation are important concepts. Many…

Q: When are analytical procedures required, and when are they optional?

A:

Q: Why would an auditor use observation to gather evidence? What are the strengths and weaknesses of…

A: solution : Why would an auditor use observation to gather evidence? What are the strengths and…

Q: Why is the audit team more concerned with the risk of overreliance than with the risk of…

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

Q: Are there any reasons to question the validity of the CAPM?Explain.

A: In any ‘well-diversified portfolios’ the relationship between the ‘risk’ and the ‘required rate of…

Q: Why audit is a systematic process?

A: Audit: It is an examination of the financial statements of the company. It helps in determining…

Q: Which of the following should not be included in the group (criteria for evidence)?

A: These are the criteria for evidence: 1. Reasonableness which means purpose 2. Credibility which…

Q: Which of the following relationships between types of analytical procedures and sources of…

A:

Q: What are the characteristics of Substantive Tests?

A: Audit Planning: Audit planning is the first step in the auditing process. Auditor gathers all the…

Q: Which of the following evidence gathering techniques is a CPA most likely to be utilized when…

A: Audit Evidence: The information gathered by an auditor in order to determine the correctness and…

Q: In what ways can independent verification occur?

A: Independent Verification of business activities of a company can be done various ways. Some of them…

Q: explain why the author's assessment of the appropriateness of the going concern assumptions is so…

A: Going Concern Assumption- As per the going concern assumption business will continue its…

Q: What is IT auditing?

A: Auditing:   Auditing refers to the procedure for providing independent report over the presentation…

Q: t is “inquiry” and “observation” procedures? Give the strengths and weaknesses of these tests?

A: This method is often used in conjunction with other, more reliable method. For example, an auditor…

Q: what are the advantages of using Analytical Procedures as Substantive Tests

A: solution concept Analytical Procedures as Substantive Tests               Analytical procedure means…

Q: The two ways to conduct substantive tests are substantive analytical procedures and tests of…

A: The answer for above question is given below:

Q: Why determination of Materiality is a matter of Auditor Judgment? Explain both Qualitative and…

A: The financial statement is used for making economic decisions. Planning of upcoming year depended…

Q: note taking and documentation play

A: Note taking and documentation is taking record of what has been observed or heard or came to notice…

Q: What is the difference between the Codification and the Codification Research System?

A: FASB: The FASB is an independent, designated and non-profit organization established by SEC for…

Q: When are Analytical Procedures required?

A: Definition:   Audit evidence: The piece of evidence provided by the audit team to prove their…

Q: Why are external documents considered more reliable evidence than internal documents? What aspects…

A: External evidence is seen as more credible than internal evidence since it has passed through the…

Q: Does the MM theory appear to be correct according to either empirical research or observations…

A: The question is based on the concept of Modigliani Miller (MM) approach of capital structure and…

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: How are the sufficiency and appropriateness of evidence related to detection risk?

A: Audit Evidence:   The pieces of evidence provided by the audit team to prove their opinion with…

Q: How does the source of evidence affect its reliability?

A:

Q: What is an evidence which can support a conclusion for the time being but it may be proven…

A: Circumstantial proof is evidence that depends on associate illation to attach it to a conclusion of…

Q: Which of the following is not considered to be an analytical procedure?

A: Answer: Comparisons of financial statements accounts with source documents

Q: What is the relationship between Evidence and Detection Risk?

A: Detection risk is the risk that an auditor will not find a material misstatement in a client's…

Q: What is underpricing? Why is it used? What evidence do we have to support the belief that…

A: Underpricing is a common term used in Initial public offering of shares of a private company which…

Q: What are the advantages and disadvantages of adverse audit Opinion

A: An adverse audit report is a major warning sign. An adverse audit report typically reveals egregious…

Q: What are the possible obstacles or hindrance of operational audi

A: The auditor is not expected to, and cannot, reduce audit risk to zero and cannot, therefore, obtain…

Q: Why "ollectivity of evidence" is "high" for "pliysicai examination" evidence?

A: The objectivity of evidence depends upon the viability of internal control, now the…

Q: tiveness to knowledge? Also mention empirical evidence.

A: Inventiveness : The ability to create something new or to innovate and imagine is called…

Q: Has the validity of the CAPM been confirmed through empirical tests?

A: Introduction: The model of capital asset pricing is a formula that determines the relation between…