Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 24, Problem 18.3MCQ
To determine
Identify the correct option that shows the auditor’s responsibility in the given situation.
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Which of the following normally occurs earliest in the audit examination?a. Discovery of an omitted audit procedure.b. Dual dating the auditor’s report on the entity’s financial statements for subsequent events that exist at the date of the financial statements.c. Preparation of the management letter.d. Review of audit documentation.
An audit report was dual-dated for a subsequent event disclosed in the financial statements, which occurred after the completion of the evidence collection process butbefore the issuance of the financial statements. The auditor’s responsibility for eventsoccurring subsequent to the completion of the evidence collection process was(1) limited to include only events occurring before the date of the last subsequentevent referred to.(2) extended to subsequent events occurring through the date of issuance of thefinancial statements.(3) limited to the specific events referred to.(4) extended to include all events occurring since the completion of the evidencecollection process.
Discuss the auditor’s responsibility for detecting subsequent events(a) prior to the completion of field work;(b) prior to signing the audit report, and(c) between the date of the audit report and the issuance of the financialreport.
Chapter 24 Solutions
Auditing and Assurance Services (16th Edition)
Ch. 24 - Prob. 1RQCh. 24 - Explain why an auditor is interested in a clients...Ch. 24 - Prob. 3RQCh. 24 - Prob. 4RQCh. 24 - Prob. 5RQCh. 24 - Prob. 6RQCh. 24 - Prob. 7RQCh. 24 - Prob. 8RQCh. 24 - What major considerations should the auditor take...Ch. 24 - Identify five audit procedures normally done as a...
Ch. 24 - Prob. 11RQCh. 24 - Prob. 12RQCh. 24 - Prob. 13RQCh. 24 - Prob. 14RQCh. 24 - Prob. 15RQCh. 24 - Prob. 16RQCh. 24 - Prob. 17RQCh. 24 - Prob. 18.1MCQCh. 24 - Prob. 18.2MCQCh. 24 - Prob. 18.3MCQCh. 24 - Prob. 18.4MCQCh. 24 - Prob. 19.1MCQCh. 24 - Prob. 19.2MCQCh. 24 - Prob. 19.3MCQCh. 24 - Prob. 20.1MCQCh. 24 - Prob. 20.2MCQCh. 24 - Prob. 20.3MCQCh. 24 - Prob. 21.1MCQCh. 24 - Prob. 21.2MCQCh. 24 - Prob. 21.3MCQCh. 24 - Prob. 22DQPCh. 24 - In an audit of the Marco Corporation as of...Ch. 24 - Prob. 24DQPCh. 24 - The field work for the June 30, 2016, audit of...Ch. 24 - Prob. 26DQPCh. 24 - Prob. 27DQPCh. 24 - Prob. 28DQPCh. 24 - Prob. 29DQPCh. 24 - Prob. 30DQP
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Similar questions
- What are auditors’ responsibilities for subsequently discovered facts if these are identified (a)prior to the audit report release date and (b) following the audit report release date?arrow_forwardWhat are auditors' obligations for later found facts uncovered (a) before to the audit report's release date and (b) subsequent to the audit report's release date?arrow_forwardWhich of the following is correct about assembling the audit documentation in an audit file? O a. Assembling the final audit plan on a timely basis after the date of the financial year ended O b. Assembling the final audit program on annually basis before the date of the auditor's report O C. Assembling the final audit file on a timely basis after the date of the auditor's report O d. Assembling the final audit file on a quarterly basis before audit procedures performedarrow_forward
- The auditing standards regarding subsequently discovered facts refers to knowledge obtained aftera. The date the fieldwork began.b. The date of the auditor’s report.c. The date of the financial statements.d. The date interim audit work was completearrow_forwardUnder which of the conditions below the auditor will make “an emphasis of matter” to the financial statements in the audit report even though an unqualified opinion is given: i) The existence of significant related party transactions. ii) Report involving other auditors iii)Important events occurring subsequent to the balance sheet date. iv) Matters affecting the comparability of the financial statements with those of the preceding year A. i) iii) and iv) B. ii) iii) and iv) C. i) ii) iii) and iv) D. ii) and iii)arrow_forwardA special purpose auditors’ report is used in connection with the independent audit of the following financial information, EXCEPT A. Financial statements prepared in accordance with a comprehensive basis of accounting B. Compliance with contractual agreements C. Specified accounts . elements of accounts or items in a financial statement D. Financial statements prepared in accordance with PFRSarrow_forward
- The audit report should be dated: a. Earlier than the date the audit evidence was checked b. Not earlier than the date on which the accounts were approved by management c. Earlier than the date of the completion of audit work d. Earlier than the date the audit examination has startedarrow_forwardIf the auditor verifies a debtor’s account balance, which is comprised of a number of transactions, at the end of the financial period by sending a debtor’s confirmation request, this is an example of a Select one: A. substantive test of transactions B. test of controls C. substantive analytical procedure D. substantive test of balancesarrow_forwardThe preparation of audit documentation is an integral part of an auditor’s examination of financial statements. On a recurring engagement, auditors review the audit plans and audit documentation from the prior audit while planning the current audit to determine their usefulness for the current-year work.Required:a. (1) What are the purposes or functions of audit documentation? (2) What records may be included in audit documentation?b. What factors affect the auditors’ judgment of the type and content of the audit documentation for a particular engagement?c. What should be included in audit documentation to support auditors’ compliance with generally accepted auditing standards?d. How can auditors make the most effective use of the prior-year audit plans in a recurring audit?arrow_forward
- STATEMENT 1: Most of the information included in the permanent file are accumulated during the initial audit. STATEMENT 2: The auditor may at his/her discretion make some information from the audit working papers available to clients. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correctarrow_forwardIdentify major activities performed by auditors in completing the substantive procedures following the date of the financial statements.arrow_forwardS1: Analytical review procedures is required as an evidence-gathering substantive test procedure, S2: In the final stage of the audit, analytical review normally involves comparison of current year's financial data with those of prior years. a. BOTH STATEMENTS ARE TRUE b. BOTH STATEMENTS ARE FALSE c. ONLY S1 IS TRUE d. ONLY S2 IS TRUEarrow_forward
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