Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Question
Chapter 18, Problem 5RQ
To determine
Give a comment on the given statement related to the significant deficiencies and material weaknesses.
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Under PCAOB standards, when a material weakness exists, the auditors’ report on internal control is most likely to include an opinion that is:
Multiple Choice
qualified.
disclaimer.
unqualified.
adverse.
The SEC notes, with respect to materiality, that
Group of answer choices
Professional judgment should not be used in allocating the preliminary estimate to the accounts.
Quantitative considerations are more important than qualitative issues when considering misstatements.
Small misstatements, regardless of whether they are intentional or not, are considered immaterial.
Auditors should consider both the individual and the aggregate impact of misstatements in determining if they are material.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs. Discuss this statement
Chapter 18 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 18 - Prob. 1RQCh. 18 - Prob. 2RQCh. 18 - Prob. 3RQCh. 18 - Prob. 4RQCh. 18 - Prob. 5RQCh. 18 - Prob. 6RQCh. 18 - Prob. 7RQCh. 18 - Prob. 8RQCh. 18 - Prob. 9RQCh. 18 - Prob. 10RQ
Ch. 18 - Prob. 11RQCh. 18 - Prob. 12RQCh. 18 - Prob. 13RQCh. 18 - Prob. 14RQCh. 18 - Prob. 15RQCh. 18 - Prob. 16RQCh. 18 - Prob. 17RQCh. 18 - Prob. 18RQCh. 18 - Prob. 19RQCh. 18 - Prob. 20RQCh. 18 - Prob. 21RQCh. 18 - Prob. 22RQCh. 18 - Prob. 23RQCh. 18 - Prob. 24RQCh. 18 - Prob. 25RQCh. 18 - Prob. 26RQCh. 18 - Prob. 27RQCh. 18 - Prob. 28RQCh. 18 - Prob. 29QRACh. 18 - Prob. 30QRACh. 18 - Prob. 31QRACh. 18 - Prob. 32AOQCh. 18 - Prob. 32BOQCh. 18 - Prob. 32COQCh. 18 - Prob. 32DOQCh. 18 - Prob. 32EOQCh. 18 - Prob. 32FOQCh. 18 - Prob. 32GOQCh. 18 - Prob. 32HOQCh. 18 - Prob. 32IOQCh. 18 - Prob. 32JOQCh. 18 - Prob. 32KOQCh. 18 - Prob. 32LOQCh. 18 - Prob. 33OQCh. 18 - Prob. 34OQCh. 18 - Prob. 35OQCh. 18 - Match the following definitions (or partial...Ch. 18 - Prob. 37PCh. 18 - Prob. 38ITC
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Similar questions
- Explain when performing an auditor, the auditor could sometimes be permitting the sumof the tolerable misstatement to exceed overall materialityarrow_forwardWhich of the following statements concerning the independent auditor's required communication of material weaknesses in internal control is correct? A. Although written communication is preferable, the auditor may communicate the findings orally. B. Weaknesse that had been reported in prior years' communications and have not been corrected need not be repeated in the current year's communication. C. If the auditor is not aware of any material weaknesses during the examination, that fact must be communicated. D. Weaknesses reported at interim dates must be repeated in the final communication.arrow_forwardAs auditors expect certain accounts to have more misstatements than others, both overstatements and understatements must be considered. Explain the reasons for permitting the sum of the tolerable misstatement to exceed overall materiality.arrow_forward
- Which of the following statements is false regardingsubstantiveanalytical procedures?a. Substantive analytical procedures are not required tobe performed on all audit engagements.b. If the results of substantive analytical proceduressuggest that an account balance is materially correct,the auditor can reduce the evidence needed fromtests of details.c. The auditor would perform substantive analyticalprocedures after tests of details.d. All of the above statements are true.arrow_forwardThe risk that material errors will not be detected is directly controllable by the auditor through substantive tests of details and other substantive audit procedures. IS THE STATEMENT TRUE OR FALSE? WHY?arrow_forwardIn practice, auditors issue a significant number of modified audit opinions for departures from GAAP that are material, but not pervasive. Question 37 options: True Falsearrow_forward
- All deficiencies, regardless of severity, must be communicated to the audit committee. Group of answer choices True Falsearrow_forwardExamine the information enunciated below carefully and identify the impact of increase in the assessed risk of material misstatement on timeliness of direction on review of audit work. a. Increase in the timeliness of direction and more detailed review of work O b. None of the options O c. Decrease in the timeliness of direction and more detailed review of work d. Neither increase nor decrease in the timeliness of direction and more detailed review of workarrow_forwardWhich of the following characteristics is not a measure of the appropriateness of audit evidence? Quality of audit evidence. Relevance of evidence in providing support for, or detecting, misstatements in transactions, balances, disclosures and related assertions. Reliability of audit evidence Quantity of the audit evidencearrow_forward
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