How does the auditor gain an understanding of the audit client and its environment?
Question:
How does the auditor gain an understanding of the audit client and its environment?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (17 reviews)
The auditor asks the client questions about the business he becomes familiar with ...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Auditing and Assurance Services An Applied Approach
ISBN: 978-0073404004
1st edition
Authors: Iris Stuart
Question Posted:
Students also viewed these Auditing questions
-
How does the auditor obtain an understanding of ICFR?
-
How does the auditor determine whether marketable securities are properly classified as short-term securities or long-term investments? What are the accounting implications of the classification as...
-
How does the auditor communicate internal control deficiencies to management and the audit committee in a financial statement audit?
-
In Problems 5978, solve each equation in the complex number system. x 2 + 25 = 0
-
With arrows, illustrate the transfer of electrons to form magnesium sulfide from Mg atoms and S atoms.
-
A pipe whose diameter is 10 cm transports air with a temperature of 20C and pressure of 253 kPa absolute at 50 m/s. Determine the mass flow rate.
-
In Example 8.4, choose methane and hydrogen as independent components. Derive relationships for the remaining components in terms of methane and hydrogen. Data From Example 8.4:- Construct the...
-
The sales price per unit is $13 for the Dakota Companys only product. The variable cost per unit is $5. In year 2011, the company sold 80,000 units, which was 10,000 units above the break-even point....
-
Your firm has debt worth $250,000, with a cost of debt of 9 percent. It faces a 20 percent tax rate. If an indentical unlevered firm has a total value of 450,000, under Miller and Modigliani model...
-
Backline Advertising creates, plans, and handles advertising campaigns in a three-state area. Recently, Backline had to replace an inexperienced office worker in charge of bookkeeping because of some...
-
Describe the quality control measures the audit firm uses to ensure that the audit process corresponds to professional standards.
-
What is the risk of material misstatement in the financial statements? How should the auditor respond to this risk?
-
If f(x) and g(x) are continuous functions that both have an inflection point at x = c, is it true that the sum h(x) = f(x) + g(x) must also have an inflection point at x = c? Either explain why this...
-
XYZs stock price and dividend history are as follows: An investor buys three shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning...
-
How well does interest rate parity seem to hold? Are there bargains to be found in other currencies? What factors might account for interest rate parity violation?
-
Consider the (rather implausible) scenario in which the U.S. government phases out all Social Security transfers to retirees. Assuming the goods market is in equilibrium, graph the new saving curve...
-
For a supply chain to manage predictable variability successfully, it must understand market conditions. the entire chain must work toward the one goal of maximizing profitability. it must have good...
-
Experiment with both the size of your views as well as the confidence you assign to them to see how they affect portfolio allocation and adjusted return.
-
Suppose ABC Inc., a U.S. auto manufacturer, obtains some of its auto components in Mexico and that the costs of these components are denominated in pesos; the costs of the remaining components are...
-
14. In testing the existence assertion, an auditor ordinarily works from the a. Financial statements to the accounting records. b. General journal to the general ledger. c. Supporting evidence to the...
-
Which of these operates on group psychology? Formal organization Informal structures Functional structure Divisional structure
-
Lajod Company has an internal audit department consisting of a manager and three staff auditors. The manager of internal audits, in turn, reports to the corporate controller. Copies of audit reports...
-
Weston Corporation has an internal audit department operating out of the corporate headquarters. Various types of audit assignments are performed by the department for the eight divisions of the...
-
Haskin Company was founded 40 years ago and now has several manufacturing plants in the Northeast and Midwest. The evaluation of proposed capital expenditures became increasingly difficult for...
-
Shawn Inc. proposed to install one Robotic Machine for his new project, an initial investment of CANVAS Technology will be $520,000 and the Robotic will be expected to generate net cash flows of at...
-
You anticipate the receipt of money in 200 days, which you will use to purchase stocks in a particular company. The stock is currently selling for $51 and will pay a $0.5 dividend in 50 days and...
-
1) Based on the stock chart for Michaels Companies Inc, what do you think the short and long-term growth potentials are for this company? (discuss the advantages/disadvantages) Link to the stock...
Study smarter with the SolutionInn App