Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN: 9781305080577
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: South-Western College Pub
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Question
Chapter 1, Problem 5TFQ
To determine
Introduction: Auditing means the inspection of financial accounts of the company to determine if the records are accurate as per the rules and regulations of accounting or not. There are two types of auditors, i.e., internal auditors and external auditors, that carry out the
To state: If the given statement is true or false.
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Students have asked these similar questions
Which of the following is NOT a major component of the Sarbanes-Oxley Act?
Executive responsibility for accurate financial reporting.
Accounting regulation.
Mandating external financial audits for all companies.
Formation of an audit committee.
7
What are the main procedures used by an auditor or an accountant when performing a review or moderate assurance level engagement on financial statements of a company? (Hint: There are 3 main procedures, list the 3)
_______________
_______________
_______________
External auditors are obviously responsible for the audit of the financials. However what is their responsibility for the preparation of the financials?
Chapter 1 Solutions
Auditing: A Risk Based-Approach to Conducting a Quality Audit
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
- “Audit committees do not prepare financial reports, nor do they conduct audits. But they have an essential role to play in ensuring the integrity and transparency of corporate reporting”. Explain this statement?arrow_forwardProfessional guidance indicates that the auditor should consider revenue recognition to be high risk in planning an audit of a company’s financial statements. a. Identify the activities that affect the revenue cycle. b. Identify the financial statement accounts typically associated with the revenue cycle.arrow_forwardTrue or False Independent Auditor is responsible for preparing the financial statements, establishing and maintaining adequate internal control over financial reporting (ICFR), and evaluating the effectiveness of ICFR. * Under Sarbanes–Oxley Section 301 public company audit committees are directly responsible for the appointment, compensation, and oversight of the work of any registered public accounting firm employed by their company. * Auditors are required by the Security and Exchange Commission to report to the audit committee of the publicly-traded company all alternative treatments of financial information within generally accepted accounting principles that have been discussed with management officials. * CFO and the audit committee depend heavily on one another * Included in the Environment disclosures are the risks and opportunities due to climate change, procurement practices with respect to local suppliers, and anti-corruption *arrow_forward
- For a corporation in an industry with fewer rules, which of the following control goals in the General Ledger operations within the Record-to-Report process is least likely to have more comprehensive audit procedures? a. Ascertain that the general ledger and management accounts are correct, dependable, and accurately reflect the organization's structure and activities. b. To guarantee that the accounting data may be utilised to create all of the relevant statutory and publicly available financial statements. c. Ascertain that accounting data may be analysed in a relevant and reliable manner to aid management choices and actions. d. To guarantee that accounting records are kept in conformity with applicable laws, regulations, and professional standards.arrow_forwardTrue or false the audit committee is responsible for overseeing the entire financial reporting process. * NASDAQ listing standards require the audit committee to review major issues regarding accounting principles and the presentation of the financial statements. * External auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.arrow_forwardWhich of the following is not part of audit evidence? Information gathered by the auditors from stock exchange Information contained in the accounting records Confirmation from third parties Audit firm quality control procedure for client acceptance and continuationarrow_forward
- Operational audits generally have been conducted by internal auditors and governmental audit agencies but may be performed by certified public accountants. Aprimary purpose of an operational audit is to provide(1) a means of assurance that internal accounting controls are functioning as planned.(2) a measure of management performance in meeting organizational goals.(3) the results of internal examinations of financial and accounting matters to acompany’s top-level management.(4) aid to the independent auditor, who is conducting the audit of the financialstatementsarrow_forwardMatch each of the following provisions of the Sarbanes-Oxley Act (SOX) with its description. Major Provisions of the Sarbanes-Oxley Act Descriptions 1. Oversight board 2. Corporate executive accountability 3. Auditor rotation 4. Nonaudit services 5. Internal control a. Executives must personally certify the company’s financial statements. b. Audit firm cannot provide a variety of other services to its client, such as investment advising. c. PCAOB establishes standards related to the preparation of audited financial reports. d. Lead audit partners are required to change every five years. e. Management must document the effectiveness of procedures that could affect financial reporting.arrow_forwardWho is responsible for preparing financial statements of Huawei? What is the external audit report on the presentation of financial statement of Huawei? Name the different financial statements that audited by external auditors.arrow_forward
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