EP AUDITING+ASSURANCE...-MYACCT.LAB
16th Edition
ISBN: 9780134148656
Author: ARENS
Publisher: PEARSON CO
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Chapter 13, Problem 21.2MCQ
To determine
Identify the correct answer for the given statement.
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In a financial statement audit, the auditor obtains a reasonable level of assurance about whether the financial statements are free of material misstatement in order to express an opinion. In order to obtain reasonable assurance, the auditor must
have prior experience in the industry in which the audit client operates.
examine all documents available that support the financial statements.
obtain sufficient audit evidence.
test controls around significant transaction cycles.
The auditor should assess control risk for each relevant assertion by evaluating the evidence obtained from all sources, includinga. The auditor’s testing of controls for the audit of internal control on a public company.b. Misstatements detected during the financial statement audit.c. Any control deficiencies identified during the audit.d. All of the above.
The external auditor should fulfill several performance responsibilities in order to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement . Among these responsibilities is Select one : a. providing an opinion on the financial statements . b. exercising professional judgment. verifying that all audit work is performed by the auditor with a minimum of three years ' experience . d. Accumulating sufficient , appropriate audit evidence.
Chapter 13 Solutions
EP AUDITING+ASSURANCE...-MYACCT.LAB
Ch. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - Prob. 4RQCh. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Explain how the calculation and comparison to...Ch. 13 - Prob. 8RQCh. 13 - Prob. 9RQCh. 13 - For each of the eight types of evidence discussed...
Ch. 13 - Prob. 11RQCh. 13 - Prob. 12RQCh. 13 - Prob. 13RQCh. 13 - Prob. 14RQCh. 13 - Prob. 15RQCh. 13 - Prob. 16RQCh. 13 - Prob. 17RQCh. 13 - Prob. 18RQCh. 13 - Prob. 19RQCh. 13 - Prob. 20.1MCQCh. 13 - Prob. 20.2MCQCh. 13 - A conceptually logical approach to the auditors...Ch. 13 - Prob. 21.1MCQCh. 13 - Prob. 21.2MCQCh. 13 - Prob. 21.3MCQCh. 13 - Prob. 22.1MCQCh. 13 - b. Substantive analytical procedures are most...Ch. 13 - Prob. 22.3MCQCh. 13 - Prob. 23DQPCh. 13 - Prob. 24DQPCh. 13 - Prob. 25DQPCh. 13 - Prob. 26DQPCh. 13 - Prob. 27DQPCh. 13 - Prob. 28DQPCh. 13 - Prob. 29DQPCh. 13 - Prob. 30DQPCh. 13 - Prob. 31DQPCh. 13 - Prob. 32DQPCh. 13 - Prob. 33DQPCh. 13 - Prob. 35C
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- O LO 2-4 Wren, Inc., a nonpublic company, retains Ying and Company CPA to audit its financial statements and internal control. Sarah Smith, the senior on the audit prepared the following first draft of an unmodified report: 2-33. Page 69 Independent Registered Auditor's Report (Comment a) To the Board of Directors and Management of Wren, Inc. (Comment b) Phoenix, AZ 85011 Opinion We have audited the financial statements of Wren, Inc., which comprise the balance sheet as of December 31, 20X1, and the related statements of income, changes in stockholders' equity, and cash flows for the year then ended, and the related notes to the financial statements. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Wren, Inc. as of December 31, 20X1, and the results of its operations and its cash flows for the year then ended in accordance with Financial Accounting Standards Board (Comment c) accounting principles generally…arrow_forwardWhy deos the auditor obtain an understanding of the clients business, enviroment and related risk of the organization? 1. Determine audit opinion that will be issued 2. determine the appropriate understanding of internal controls 3. determine the detection of audit procedures in the period under audit. 4. determine weather the auditor has sufficient knowledge to perform audit.arrow_forwardAuditors obtain reasonable assurance that financial statements are fairly stated by performing all of the following except: Evaluating the materiality of misstatements detected. Determining whether internal control can be relied upon to prevent/detect misstatements. Performing substantive tests to detect misstatements. Establishing strong systems of internal control.arrow_forward
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