EBK AUDITING AND ASSURANCE SERVICES
16th Edition
ISBN: 9780134067117
Author: Hogan
Publisher: VST
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 14.3MCQ
To determine
Identify the option that provides reasonable assurance of achieving the objective given.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
One of an accounting firm’s basic objectives is to provide professional services that conform to professional standards. Reasonable assurance of achieving this objective can be obtained by followinga. Generally accepted auditing standards.b. Standards within a system of quality control.c. Generally accepted accounting principles.d. International auditing standards.
A certification by a qualified institution pursuant to 29 CFR 2520.103-5(c) must
Select one:
a.
state that the information is accurate.
b.
be signed by any senior manager
c.
state that the information is complete.
d.
state that the information is complete and accurate.
Identify how each of the following statements relates to the performance principle by considering which element(s) of the principle are
related to that statement. (A statement may be related to more than one element.) Use the following elements in providing your
response:
Reasonable assurance
• Planning and supervision
• Materiality
⚫ Risk assessment
• Audit evidence
a. Evaluating the effectiveness of the client's internal control in preventing or detecting misstatements.
b. Obtaining an understanding of the client's business and industry.
c. Acknowledging that the risk of failing to detect a material misstatement cannot be reduced to zero.
d. Obtaining confirmations from the client's customers as to the ending balances in accounts receivable.
e. Preparing a written audit plan.
f.
Designing audit procedures to identify misstatements that would have a significant effect on financial
statement users' decisions.
g. Considering the likelihood that the account balance contains a material…
Chapter 2 Solutions
EBK AUDITING AND ASSURANCE SERVICES
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - Prob. 10RQ
Ch. 2 - Prob. 11RQCh. 2 - State what is meant by the term peer review. What...Ch. 2 - Prob. 13.1MCQCh. 2 - Prob. 13.2MCQCh. 2 - Prob. 13.3MCQCh. 2 - Prob. 14.1MCQCh. 2 - Prob. 14.2MCQCh. 2 - Prob. 14.3MCQCh. 2 - Prob. 15.1MCQCh. 2 - Prob. 15.2MCQCh. 2 - Prob. 15.3MCQCh. 2 - Prob. 16DQPCh. 2 - Prob. 17DQPCh. 2 - Prob. 18DQPCh. 2 - Prob. 19DQPCh. 2 - Prob. 21DQP
Knowledge Booster
Similar questions
- Identify the relevance of “Professional Competence and Due Care” with one of the following options. a. Duty of Auditor b. Powers of auditor c. Code of Ethics for professional accountants d. Role of Regulatory and professional bodiesarrow_forwardThe standards are divided into attribute, performance and implementation guidance. Classify the following standards according to attribute and performance standards:A) Chief Audit Executive Roles Beyond Internal Auditing.B) Engagement Planning.C) Continuing Professional Development.D) Requirements of the Quality Assurance and Improvement Program.E) External Service Provider and Organizational Responsibility for Internal Auditing.F) Due Professional Carearrow_forwardSelect one of the following principles of professional conduct to examine in the AICPA Code of Professional Conduct document: Responsibilities Public interest Integrity Objectivity and independence Due care Scope and nature of servicesarrow_forward
- I. MAS involves decision making of practitioner for the management to meet its goals.II. A CPA’ scope of management services is broad and covers financial and non-financial engagement including audit engagements, as this is within the expertise of CPA. A• True True B• False False C• False True D• True Falsearrow_forward31. Which of the following statements is true regarding involvement of the CAE in a consulting engagement? a. CAE must determine if the scope of the engagement is sufficient to achieve the desired objectives before committing to the task b. CAE must determine if there is expertise in internal audit to conduct the engagement on its own c. CAE is ultimately responsible for the objectives and scope of the engagement d. CAE should ensure that the objectives, scope, and approach of the consulting engagement are achievable within a month 33. Objectives of the risk management process include all of the following, except a. To look for ways to take advantage of opportunities b. To link growth, risk, and return c. To comply with laws and regulations d. To act as a reasonable "brake" on strategic growth 34. How is the COSO ERM framework different from ISO 31000 guide? a. COSO Framework describes ERM as an iterative process and ISO Guidance describes ERM as a serial…arrow_forwardUnder AICPA rules, which of the following services would generally be permitted to be provided to an audit client provided the general requirements are met? Firm accepting responsibility for monitoring client's IT controls (e.g., through automated tool) Providing advice and recommendations related to the application of an accounting standard Staff augmentation services Leading or supervising the audit client's accounting standards implementation teamarrow_forward
- Which of the following elements of a system of quality control is related to firms receiving independence confirmations from its professionals with respect to clients?a. Acceptance and continuance of client relationships and specific engagements.b. Engagement performance.c. Monitoring.d. Relevant ethical requirements.arrow_forwardWhich of the following attributes most clearly differentiates a CPA who audits management's financial statements as contrasted to management? a. Integrity b. Competence. c. Independence. d. Keeping informed on current professional developments.arrow_forwardUnderstand the role of a system of quality control and monitoring efforts in enabling public accounting firms to meet appropriate levels of professional qualityarrow_forward
- 1. Professional competence, due professional care, planning and supervision, and sufficient relevant data are general standards for MAS practice, including Role of MAS practitioner c. Association with forecasts Understanding with client d. Communication of results 2. Which of the following is not one of the steps in MAS engagement? Implementation c. Analysis Informal meeting with client d. Design 3. A certified public accountant’s scope of mgt. services is broad and covers all of the following except audit engagement c. Re-engineering job computerization engagements d. Change mgt. engagements 4. Which of the following is not an area in MAS practice Conducting special studies Reviewing and suggesting improvement of policies , procedures, systems and methods, etc. Marketing and public relations work Introducing new ideas, concepts…arrow_forwardA primary purpose for establishing a code of conduct within a professional organization is to: a Reduce the likelihood that members of the profession will be sued for substandard work. b Ensure that all members of the profession perform at approximately the same level of competence. c Demonstrate acceptance of responsibility to the interests of those served by the profession. d Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organizationarrow_forwardA persuasive characteristics of CPA’s role in mgt. consulting services engagements is that of being a (an) independent practitioner c. objective advisor confidential reviewer d computer specialist According to profession’s standards, which of the following would not be considered consulting services requirements for CPAs? Supervising staff who are assigned to the engagement. Maintaining independence from the client. Complying with statements on standards for consulting services. Obtaining an understanding of the nature, scope and limitations of the engagements. According to professions’ standards, which of the following would be considered consulting services? Advisory services Implementing services Product services Yes Yes Yes Yes Yes No Yes…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College PubAuditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning