EBK AUDITING: A RISK BASED-APPROACH TO
10th Edition
ISBN: 9780100548480
Author: RITTENBERG
Publisher: YUZU
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Question
Chapter 1, Problem 51RSCQ
To determine
Concept Introduction:The client acceptance and continuance decisions are the first step in doing quality audit. The risks associated with client audit and the returns from the clients and the audit firm’s strategy need to be carefully considered before taking such decision.
To explain:The similarity and difference between individual stock and audit clients, differences between audit acceptance and continuance decision and situations when deeper knowledge of clients is required.
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When auditing an investment in another company, an auditor most likely would seek to conduct which audit procedure to help satisfy the valuation assertion?a. Inspect the stock certificates evidencing the investment.b. Examine the audited financial statements of the investee company.c. Review the broker’s advice or canceled check for the investment’s acquisition.d. Obtain market quotations from The Wall Street Journal or another independent source.
When auditing an investment in another company, an auditor most likely would seek to conduct which audit procedure to help satisfy the valuation assertion?a. Inspect the stock certificates evidencing the investment.b. Examine the audited financial statements of the investee company.c. Review the broker’s advice or canceled check for the investment’s acquisition.
In performing risk assessment procedures for investments, an auditor may inquire of the client personnel which of the following questions?
a. Are investment records periodically reconciled to actual listing of investments (i.e., per count or investment custodian statement)?
b. Is there independent review of investments measured at fair value based on market valuation?
c. Is investment income independently recalculated?
d. All of the choices
Chapter 1 Solutions
EBK AUDITING: A RISK BASED-APPROACH TO
Ch. 1 - Prob. 1TFQCh. 1 - Prob. 2TFQCh. 1 - Prob. 3TFQCh. 1 - Prob. 4TFQCh. 1 - Prob. 5TFQCh. 1 - Prob. 6TFQCh. 1 - Prob. 7TFQCh. 1 - Prob. 8TFQCh. 1 - Prob. 9TFQCh. 1 - Prob. 10TFQ
Ch. 1 - Prob. 11TFQCh. 1 - Prob. 12TFQCh. 1 - Prob. 13TFQCh. 1 - Prob. 14TFQCh. 1 - Prob. 15MCQCh. 1 - Prob. 16MCQCh. 1 - Prob. 17MCQCh. 1 - Prob. 18MCQCh. 1 - Prob. 19MCQCh. 1 - Prob. 20MCQCh. 1 - Prob. 21MCQCh. 1 - Prob. 22MCQCh. 1 - Prob. 23MCQCh. 1 - Prob. 24MCQCh. 1 - Prob. 25MCQCh. 1 - Prob. 26MCQCh. 1 - Prob. 27MCQCh. 1 - Which of the following factors is an example of a...Ch. 1 - Prob. 29RSCQCh. 1 - Prob. 30RSCQCh. 1 - Prob. 31RSCQCh. 1 - Prob. 32RSCQCh. 1 - Prob. 33RSCQCh. 1 - Prob. 34RSCQCh. 1 - Prob. 35RSCQCh. 1 - Prob. 36RSCQCh. 1 - Prob. 37RSCQCh. 1 - Prob. 38RSCQCh. 1 - Prob. 39RSCQCh. 1 - Prob. 40RSCQCh. 1 - Prob. 41RSCQCh. 1 - Prob. 42RSCQCh. 1 - Prob. 43RSCQCh. 1 - Prob. 44RSCQCh. 1 - Prob. 45RSCQCh. 1 - Prob. 46RSCQCh. 1 - Prob. 47RSCQCh. 1 - Prob. 48RSCQCh. 1 - Prob. 49RSCQCh. 1 - Prob. 50RSCQCh. 1 - Prob. 51RSCQCh. 1 - Prob. 52RSCQCh. 1 - Prob. 53RSCQCh. 1 - Prob. 54FFCh. 1 - Prob. 55FFCh. 1 - Enron and Arthur Andersen UP Enron was an energy...
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Similar questions
- In performing risk assessment procedures for investments, an auditor may inquire of the client personnel which of the following questions? A. Is there independent review of investments measured at fair value based on market valuation? B. Is investment income independently recalculated? C. All of the choices D. Are investment records periodically reconciled to actual listing of investments (example: per count ot investment custodian statement)?arrow_forwardWhich of the following best demonstrates the concept of professional skepticism?a. Relying more extensively on external evidence rather than internal evidence.b. Focusing on items that have a more significant quantitative effect on the entity’s financialstatements.c. Critically assessing verbal evidence received from the entity’s management.d. Evaluating potential financial interests held by auditors in the clientarrow_forwardWhat knowledge does the auditor need about the client’sbusiness in an audit of historical financial statements? Explain how this knowledge maybe useful in performing other assurance or consulting services for the client.arrow_forward
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