All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Ask a Question

Search
Sign In
Register

study help
business
principles of auditing and other assurance services

Questions and Answers of Principles Of Auditing And Other Assurance Services

The key reason for the radical audit reforms over the past decade is:A. The disparity of revenues and practices between the big firms and the smaller accounting practices.B. The inability of auditors
The purpose of the surveillance program undertaken by ASIC is to:A. Obtain evidence on the negligence of auditors and accountants.B. Develop a complete framework of creative accounting mechanisms.C.
The main objective of CLERP 9 was to:A. Ensure Australia's legal provisions are as close as possible to the US legislation.B. Strengthen the financial reporting process so as to ensure the integrity
A financial report audit provides which level of assurance?A. A high level of assurance.B. An acceptable level of assurance.C. A moderate level of assurance.D. A minimum level of assurance.
Who are the primary financial report users that auditors need to be concerned about?A. Managers of the audited firm.B. Banks who provide capital to the firm.C. The general public.D. Shareholders of
Why does the expectation gap as defined by Porter (1993) still exist in current times?A. There are more naive users of financial reports who do not understand the nature of audit.B. Mergers and
Describe the nature of an audit.
What does an independent auditor do during a financial report audit?
Explain how agency theory results in a demand for auditing.
How has the accounting profession's role changed in recent years? What does the accounting profession currently have responsibility for?
How has case law affected auditing practice?
There were a number of major corporate collapses in the early 2000s. What was the main Australian regulatory response to these problems?
How have corporate collapses influenced the role of auditing in recent years?
What role does ASIC have in the regulation of auditors?
What role does the ASX play in the financial report audit of a listed company?
What are the current implications of the audit expectation gap? Can it be reduced?
Below is an extract of a letter written by Lee White (General Manager of Leadership and Quality — Institute of Chartered Accountants in Australia) which was published in the Australian Financial
Auditors perform audit attestation to enhance the credibility of the financial report. However, it is quite impossible for the auditors to provide an absolute assurance regarding the subject matter
Several private and public sector organisations are associated with the public accounting profession. The following are functions pertaining to these organisations:1. Issue certificates of public
You have obtained employment in the accounting firm of Bing Lee and Partners as an audit assistant. You have heard that the firm is not very modern in its approach. On your first day at work, Mr Tom
In December 2012, ASIC released its Audit inspection program report for 2011–12, one conclusion in that report was that there had not been any improvement in audit quality since the last report.
You are the managing director of a start-up company in Australia that is developing an innovative product that will revolutionise heating and cooling for homes in Australia by a unique
You are an audit senior in an accounting firm and you asked the audit partner about the ‘audit expectation gap’. The audit partner provided his opinion on the issue as follows:There is a so
Independence has always been a fundamental aspect of the accountancy profession. A commentary in 2003 suggested the following:… the public interest will be best served by reprioritizing
Carla has developed a business of roasting coffee beans in the inner northern suburbs of Melbourne since 1995. This business has relied on supplying high-quality, fair-trade organic coffee to many of
In the report ‘Audit Quality in Australia’, released by the Treasury in March 2010, the following was noted:Treasury proposes to encourage focused discussion with key stakeholders including ASIC,
Internal auditors should be objective in performing audits. Which of the following situations violates standards concerning objectivity?(1) The auditor who reviews accounts receivable worked in that
Identify the six stages of ethical development. What level of development would typically be attained by a professional such as an auditor?
Briefly describe the responsibility of the PCAOB concerning standards for the professional conduct of auditors of public companies and explain how it came to have that role. What is the role of the
All of the following non-audit services are identified by the SEC as generally impairing an auditor’s independence excepta. Information systems design and implementation.b. Human resource
Under the SEC’s rules regarding independence, which of the following must a client disclose?a. Only fees for the external audit.b. Only fees for internal and external audit services provided by the
The AICPA Code of Professional Conduct contains both general ethical principles that are aspirational and also aa. List of violations that would cause the automatic suspension of a CPA’s license.b.
Cable Corporation orally engaged Drake & Company, CPAs, to audit its financial statements. Cable’s management informed Drake that it suspected the accounts receivable were materially overstated.
Which of the following best describes whether a CPA has met the required standard of care in auditing a client’s financial statements?a. Whether the client’s expectations are met with regard to
Brown & Company, CPAs, issued an unqualified opinion on the financial statements of its client King Corporation. Based on the strength of King’s financial statements, Safe Bank loaned King
How does the Securities Act of 1933, which imposes civil liability on auditors for misrepresentations or omissions of material facts in a registration statement, expand auditors’ liability to
In a suit against Jay and Dart under the Section 11 liability provisions of the Securities Act of 1933, Hansen must prove thata. Jay knew of the misstatements.b. Jay was negligent.c. The
Under the Private Securities Litigation Reform Act of 1995, Baker, CPA, reported certain uncorrected illegal acts to Supermart’s board of directors.Baker believed that failure to take remedial
Which of the following is not a provision of the Sarbanes-Oxley Act of 2002?a. A requirement to retain audit workpapers for at least five years.b. It is a criminal offense to take any harmful action
Which of the following is a provision of the Foreign Corrupt Practices Act?a. It is a criminal offense for an auditor to fail to detect and report a bribe paid by an American business entity to a
Describe the principles used in SysTrust to evaluate a system as reliable.
An assurance report on information can provide assurance about the information’sa. Reliability.b. Relevance.c. Timeliness.d. All of the above.
An accountant may accept an engagement to apply agreed-upon procedures to prospective financial statements, provided thata. The prospective financial statements are also examined.b. Responsibility
When compiling the financial statements of a nonpublic entity, an accountant shoulda. Review agreements with financial institutions for restrictions on cash balances.b. Understand the accounting
The standard report issued by an accountant after reviewing the financial statements of a nonpublic entity states thata. A review includes assessing the accounting principles used and significant
Financial statements of a nonpublic entity that have been reviewed by an accountant should be accompanied by a report stating thata. The scope of the inquiry and the analytical procedures performed
The general accreditation granted by the Institute of Internal Auditors is known as thea. CFE.b. CGAP.c. CFSA.d. CIA.
Which of the following is not one of the general areas of the IIA’s International Standards for the Professional Practice of Internal Auditing?a. Performance standards.b. Implementation
The four principles of the IIA Code of Ethics area. Confidentiality, competency, objectivity, and integrity.b. Objectivity, independence, compliance, and due diligence.c. Honesty, integrity,
Which of the following assurances is not provided by an unqualified opinion on a SysTrust report?a. There are procedures to protect the system against unauthorized physical access.b. The financial
Which of the following reasons best explains why a practitioner should obtain an engagement letter for a PrimePlus engagement?a. Attestation standards require that the practitioner use an engagement
Which of the following is not a type of PrimePlus service?a. Assurance services.b. Consulting/facilitating services.c. Direct services.d. Systems design services.PROBLEMS
You have audited the financial statements of the Orange Grove Savings and Loan for the year ended December 31, 2007. Orange Grove’s management is required to provide a report about the
After defining the population, the auditor must make what additional decisions concerning the population?
To determine the sample size for a test of controls, an auditor should consider the tolerable deviation rate, the desired confidence level, and thea. Expected population deviation rate.b. Computed
The allowance for sampling risk wasa. 51⁄2 percent.b. 51⁄2 percent.c. 31⁄2 percent.d. 1 percent.
What is an auditor’s evaluation of a statistical sample for attributes when a test of 50 documents results in three deviations if the tolerable deviation rate is 7 percent, the expected population
Following is a list of audit procedures used as tests of controls in the revenue process.1. Observing and evaluating segregation of duties.2. Testing of whether sales invoices are supported by
In obtaining evidence in support of financial statement assertions, the auditor develops specific audit procedures to access those assertions.
Which of the following matters generally is included in an auditor’s engagement letter?a. Management’s responsibility for the entity’s compliance with laws and regulations.b. The factors to be
Miller Retailing, Inc., maintains a staff of three full-time internal auditors who report directly to the controller. In planning to use the internal auditors to help in performing the audit, the
During the initial planning phase of an audit, a CPA most likely woulda. Identify specific internal control activities that are likely to prevent fraud.b. Evaluate the reasonableness of the
To help plan the nature, timing, and extent of substantive procedures, preliminary analytical procedures should focus ona. Enhancing the auditor’s understanding of the client’s business and of
The primary objective of final analytical procedures is toa. Obtain evidence from details tested to corroborate particular assertions.b. Identify areas that represent specific risks relevant to the
Trend analysis is best described bya. The comparison, across time or to a benchmark, of relationships between financial statement accounts or between an account and nonfinancial data.b. Development
Arthur, CPA, is auditing the RCT Manufacturing Company as of December 31, 2007. As with all engagements, one of Arthur’s initial procedures is to make overall checks of the client’s financial
An auditor’s primary consideration regarding an entity’s internal controls is whether theya. Prevent management override.b. Relate to the control environment.c. Reflect management’s philosophy
Which of the following statements about internal control is correct?a. A properly maintained internal control system reasonably ensures that collusion among employees cannot occur.b. The
Regardless of the assessed level of control risk, an auditor would perform somea. Tests of controls to determine the effectiveness of internal controls.b. Analytical procedures to verify the design
Which of the following procedures would an auditor most likely rely on to verify management’s assertion of completeness?a. Reviewing standard bank confirmations for indications of cash
Management makes assertions about components of the financial statements.Match the management assertions shown in the left-hand column with the proper description of the assertion shown in the
The confirmation process is defined as the process of obtaining and evaluating a direct communication from a third party in response to a request for information about a particular item affecting
Audit documentation is the auditor’s record of work performed and conclusions reached on an audit engagement.
Audits can be categorized into five types: (1) financial statement audits,(2) audits of internal control, (3) compliance audits, (4) operational audits, and (5) forensic audits.
Which of the following is a misappropriation of assets?a. Classifying inventory held for resale as supplies.b. Investing cash and earning a 3 percent rate of return as opposed to paying off a loan
Sandy Pitts is auditing Hofmeister Hardware Company, a fast-growing retail hardware chain in the Atlanta area. While Pitts has previously worked on this engagement, this is her first year as the
Cendant Corporation (Cendant). On December 17, 1997, CUC International merged with HFS Incorporated to form Cendant. Cendant operates primarily in three business segments—alliance marketing,
Which of the following most likely would be called an assurance service?a. Performance measurement.b. Tax planning.c. Personal financial planning.d. Systems design and implementation.
Aside from cash balances, what other information is requested by an AICPA standard form to confirm account balance information with financial institutions (Figure 11-7)? Figure 11-7: Bank
Identify several major internal audit activities.
What are the primary sources of an internal auditor's independence?
Operational audits generally have been performed by internal auditors but may be performed by independent accountants. A primary purpose of an operational audit is to provide:a. A means of assuring
What is the purpose of the general and technical standards of the AICPA Code of Professional Conduct?
Adopted by member vote in 1988, the AICPA's Code of Professional Conduct provides members with principles and rules about their responsibilities to the public, to clients, and to their colleagues in
In this case, Evergreen is most likely a:a. Foreseeable third party.b. Foreseen third party.c. Primary beneficiary.d. Client.
Claiming to have relied on an unqualified opinion and December 31, 2005 audited financial statements Hasting & Ford LLP issued for Jasper Manufacturing, Dual Manufacturing has sued Hasting & Ford to
Assuming cash receipts from credit sales have been misappropriated, which of the following is likely to conceal the misappropriation and unlikely to be detected?a. Understating the sales journal.b.
Which of the following cash transfers misstates cash at December 31, 2005? Interbank Transfers Disbursement Receipt Recorded in books Paid by bank Recorded in books Received by bank a. 12/31/05
Discuss why the AICPA has such strict requirements on audit opinions when the auditor is not independent.
The following questions concern audit reports other than unqualified audit reports with standard wording. Choose the best response.a. A CPA will issue an adverse auditor’s opinion if(1) the scope
Distinguish between the effect on a CPA firm’s practice of enforcing the rules of conduct by the AICPA versus a state Board of Accountancy.
State the third standard of field work. Explain the meaning of each of the major phrases of the standard.
What are the two criteria that auditors of public companies consider when determining whether memos, correspondence, and other documents must be maintained in the audit files?
How does the sufficiency of evidence differ between procedures to obtain an understanding of internal control and tests of controls?
Vial-tek has an existing loan in the amount of \(\$ 3.5\) million with an annual interest rate of \(9.5 \%\). The company provides an internal company-prepared financial statement to the bank under
Fred Oatly is the loan officer of the National Bank of Dallas. National has a loan of \(\$ 260,000\) outstanding to Regional Delivery Service, a company specializing in delivering products of all
Rose & Co., CPAs in Kansas City, MO, have satisfactorily completed the audit of the financial statements of Dale, Booster & Co., a partnership, for the year ended December 31, 20X1. The financial
Give the purposes of each of the following procedures that may be included in internal control, and explain how each procedure contributes to strong internal control:a. Forecasting of expenditures
Nova Land Development Corporation is a closely held corporation engaged in purchasing large tracts of land, subdividing the tracts, and installing paved streets and utilities. The corporation does
Valley Finance Company opened four personal loan offices in neighboring cities on January 2. Small cash loans are made to borrowers who repay the principal with interest in monthly installments over

Showing 800 - 900 of 2090

First
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Last

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Company Info

Security
Copyrights
Privacy Policy
Terms & Condition
SolutionInn Fee
Scholarship

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Copyright © 2024 SolutionInn All Rights Reserved.

Get the SolutionInn - Study Help App