Auditing TheoryGraded Assignment based on page 6Questions to be answered: (Internal auditing & independent auditing compared)True or False. Write true if the statement is correct, or false if the statement is incorrect. If trueexplain why in at most two(2) sentences, and if false, correct the statement in at least one(1)sentence.a. The internal auditor is a company employee and a full-fledged CPA.b. The main objective of the independent auditor is to fulfill the needs of the general public forreliable financial statements.c. Independent auditing is also known as compliance auditing.d. Internal auditing is also known as operational auditing.e. BIR auditing is also known as compliance auditing.f. The internal auditor is directly concerned with the detection and prevention of fraud.g. The independent auditor is also directly concerned with the detection of prevention of fraud,just like the internal auditor.h. Independent auditing is a "broken" activity, unlike internal auditing which is donecontinuously.i. The internal auditor should be independent of the treasurer and chief accountant, butsubservient to the needs of the other members of management.j. Accounting internal control is synonymous to administrative internal control.k. Bookkeeping is always a part of financial accounting.m. Bookkeeping is sometimes a part of public accounting.

Since we answer up to three subparts, we are answering the first three subparts. Please resubmit the…

True or False. Write true if the statement is correct, or false if the statement is incorrect. If true explain why in at most two(2) sentences, and if false, correct the statement in at least one(1) sentence.

True or False. Write true if the statement is correct, or false if the statement is incorrect. If true explain why in at most two(2) sentences, and if false, correct the statement in at least one(1) sentence.

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:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 40MCQ

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Assume that items 1–8 are situations that Blas, CPA, has encountered during his audit of GELAY, Inc., a private company. List A represents the types of opinions the auditor ordinarily would issue, and List B represents a portion of the needed report modifications — whether an additional paragraph will be included. For each situation, select one response from List A and one (1) from List B. Select the best answers for each item the action the auditor would normally The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all. Assume the following: The auditor is independent The auditor previously expressed an unmodified opinion on the prior year’s financial Only single-year (not comparative) statements are presented for the current The conditions for an unmodified opinion exist unless contradicted by the The conditions stated in the items to be answered are material, unless otherwise Each item to be answered is…
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a) What are key audit matters? How do these affect the format of the audit report? b) Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing a report for his audit partner based on these results and will be attending a meeting tomorrow with the partner and representatives of the company to discuss them. The issue will be whether the financial report should be amended, or additional notes included for these subsequent events.Many of the items are not material and Stewart will recommend that no action be taken with respect to these. However, there are several items that Stewart believes are material and should be discussed at the meeting. These are as follows.(i) The board is planning to issue shares in a private placement on 15 August. (ii) The share issue is to fund the purchase of a 60 per cent stake in another company. The negotiations are in the final stages and although the contract is not yet signed it will be signedby 15 August.(iii)…
Audit risks for particular accounts and disclosures can be conceptualized in the model: Audit risk (AR) = Inherent risk (IR) × Control risk (CR) × Detection risk (DR). Use this model as a framework for considering the following situations and deciding whether the auditor’s conclusion is appropriate.a. Paul, CPA, has participated in the audit of Tordik Cheese Company for five years, first as an assistant accountant and the last two years as the senior accountant. Paul has never seen an accounting adjustment recommended and believes the inherent risk must be zero.b. Hill, CPA, has just (November 30) completed an exhaustive study and evaluation of the internal controls of Edward Foods Inc. (fiscal year ending December 31). Hill believes the control risk must be zero because no material errors could possibly slip through the many error-checking procedures and review layers that Edward used.c. Fields, CPA, is lazy and does not like audit jobs in Philadelphia. On the audit of Philly…
Reading BOD minutes of meeting by the internal auditors is an example of an audit procedures called: Select one : a. Tracing B. Reperformance c. Inspection d Vouching
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