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
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
Search
Search
Sign In
Register
study help
business
auditing international approach
Questions and Answers of
Auditing International Approach
What determines the date that auditors put on their report? What is the significance of this date to the auditors? to the financial statement users?
Why are clean unmodified opinions by far the most common form of audit report?
When would KAMs be included in an audit report? How might these matters affect users of audited financial statements?
What is an OM paragraph? When and why would it be used?
What is an EOM paragraph? When and why would it be used?
If an auditor decides an unmodified opinion is appropriate, why would there be a need to add additional information to the auditor’s report?
What other aspects of financial reporting are relevant to forming an audit opinion on financial statements, besides the monetary misstatements uncovered in the audit work?
What kind of audit opinion is appropriate if the intangible asset balance has not been prepared in accordance with GAAP because the value of the assets is very unlikely to be realized, and this is
What conditions would result in an auditor issuing an adverse opinion? What is the message being communicated to readers by an adverse audit opinion?
Why might management of a public company be reluctant to adjust misstatements that auditors discovered? How might this situation be different in a private company? Why?
What are KAMs in an audit report?
How is professional skepticism related to objectivity?
What is the role of objectivity in conducting an audit that complies with GAAS?
If the auditor believes that management has reported revenues and assets too aggressively (i.e., overstated them), does this mean management is dishonest? Explain your response.
Is it possible that a misstatement cannot be clearly categorized as being due to error or to fraud? Explain your position.
What are two causes of misstatements?
What is implied by stating an opinion that the financial statements fairly present a company’s financial position at period-end and its performance and cash flows for the period then ended?
What would cause the auditor to need to issue a disclaimer of opinion?
What impact does a scope limitation on obtaining evidence about the ending inventory have on the auditor’s opinion?
What does it mean if the auditor gives a qualified opinion because of a scope limitation? Give an example of when this situation might arise.
Why does the engagement partner review all the audit documentation as a starting point in forming an opinion on whether the financial statements are fairly presented?
What two aspects of the audit engagement are expressed in the auditor’s report?
How does an auditor identify facts that are relevant to determining whether there are misstatements in the financial statements being audited?
What is involved in exercising professional judgment?
What is a person using when they apply professional judgment in an audit engagement?
Which of the following is not required by CASs?a. Management representation letter.b. Lawyer’s letter.c. Management letter.d. Engagement letter.
Which of the following procedures is part of the audit completion work?a. Risk assessment.b. Control testing.c. Overall evaluation of the financial statements.d. Preparation of the cash flow
Until when do auditors have a responsibility to perform procedures to find subsequent events?a. The year-end balance sheet date.b. The audit report date.c. The date the audited financial statements
What is the main purpose of a written management representation letter?a. Shift responsibility for financial statements from the management to the auditor.b. Provide a substitute source of evidence
When auditing the year-end balance of interest-bearing notes payable, which account are the auditors most likely to audit at the same time?a. Interest income.b. Interest expense.c. Amortization of
How can related party transactions affect the financial statements?
What is contained in a set of completed audit files?
What kind of evidence is provided by written representations by management? Explain how this evidence is necessary, but not sufficient, according to GAAS.
What are written representations? Why do auditors require them from management?
What kinds of procedures do auditors use to get evidence related to contingencies, commitments, and subsequent events? When during the audit engagement process do auditors perform these procedures?
Which type of subsequent event is not adjusted for in the period-end financial statements under GAAP but requires disclosure in the notes? Give an example, and explain why this presentation is
Which type of subsequent event requires adjustment to the period-end financial statements under GAAP? Give an example, and explain why this presentation is required by GAAP.
What are subsequent events? Distinguish two main types.
What are commitments? How are they presented in financial statements to comply with GAAP? Why?
What are contingencies? How are they presented in financial statements to comply with GAAP? Why?
Give examples of important items in a cash flow statement that will tie into balance sheet account analyses.
What is the auditor’s main goal in analyzing the cash flow statement?
How can misclassifications within the income statement affect fair presentation, even if the bottom-line net income is not misstated?
How does the analysis of the income statement link to the audit of the balance sheet accounts and the changes in them over the period?
What is the purpose of the auditor’s review of the complete set of financial statements that management has prepared for audit?
What is the purpose of the auditor’s evaluation of the income statement?
What are the main evidence-gathering procedures that are left until the last part of the engagement? Why are these procedures done as late as possible in the engagement?
Exhibit EP 14B-3 contains a working paper prepared by a junior audit team member to document the audit work performed on the longterm debt balance for Canadian Widgets Inc. Evaluate the working paper
A corporate balance sheet indicates that one of the corporate assets is a patent. Where will an auditor most likely be able to obtain a written representation of this patent from?a. Patent lawyer.b.
Which item of all corporate share capital transactions should ultimately be traced?a. Minutes of the board of directors meetings.b. Cash receipts journal.c. Cash disbursements journal.d. Numbered
What information should be included in a working paper for the audit of investment securities?
Why is the finance and investment cycle particularly important for auditors?
You are the audit senior on the engagement team that is performing the audit of MR Roboto Inc.'s financial statements for its December 31, 20X5, year-end. Your firm has audited MR Roboto for the
What are the three phases of a control evaluation? How will the auditor’s work in these phases overlap in practice?
Identify two points in the audit process when analytical procedures are required by GAAS, and explain why they are considered necessary.
Explain why analytical procedures are used throughout the audit process.
Explain why substantive audit procedures provide direct evidence relevant to the audit opinion.
Explain why risk assessment and control testing procedures give indirect rather than direct audit evidence relevant to the audit opinion.
Identify four main purposes of auditing procedures used in the three steps of the audit process.
List and describe six main techniques used to gather audit evidence.
Explain the logical argumentation approach that underlies how an auditor uses audit evidence to support reasonable assurance.
Why is the ownership assertion a key risk in the payroll process?a. The year-end accruals are small so they may be incomplete.b. Payroll duties cannot easily be segregated in most businesses.c.
Where might an auditor find accounting records of cost overruns on contracts? improper charges? improperly capitalized inventory?
What are some common substantive audit procedures for inventory and the production process? What financial statement assertions do these procedures provide evidence about?
In what situations is it most likely that auditors will decide to test controls over the production process?
What are an auditor’s main concerns related to production cost transactions? Why?
What are the main risks for production of manufactured inventory, and management’s main control objectives related to the process? Why?
What are the main classes of transactions and related account balances for the production process?
What is the management purpose for information generated about costs of producing manufactured inventory, or services that are sold to customers?
What are some common substantive audit procedures for payroll? What financial statement assertions do these procedures provide evidence about?
In what situations is it most likely that auditors will decide to test controls over payroll transactions?
What are an auditor’s main concerns related to payroll transactions? Why?
What are the main risks for payroll, and management’s main control objectives and control activities related to the payroll process? Why?
What are the main classes of transactions and related account balances for the payroll process?
Grafite International Inc. (Grafite) is a manufacturer of various components used in the electricity distribution industry. It has factories across the country, and its customer base includes a
SCI makes clothes under its own labels, and also makes clothes to order under the labels of several large retailers. The large retailers usually order goods to be manufactured and held by SCI until
Which of the following is an auditor’s objective related to the valuation assertion for the auditee’s PPE and intangible assets?a. Obtain evidence that the auditee has legal rights to its
To determine whether accounts payable are complete, an auditor performs a test to verify that all merchandise received is recorded. Which of the following is the population for this test?a.
When evaluating inventory controls with respect to segregation of duties, which of the following would an auditor be least likely to do?a. Inspect documents.b. Make inquiries.c. Observe procedures.d.
Which of the following is the best audit procedure for determining the existence of unrecorded liabilities?a. Examine confirmation requests by creditors whose accounts appear on a subsidiary trial
To protect against the preparation of improper or inaccurate cash payments, which effective internal control procedure would be required for all cheques?a. Signed by an officer after necessary
Why must auditors understand the physical characteristics of inventoried assets?
How can analysis be used to discover understated expenses?
How can analysis be used to discover excess costs?
Explain two-direction sampling in the context of inventory test counts.
What is the main evidence used to audit depreciation expense?
What assertion(s) are addressed by a physical inspection of PPE?
What assertion is the auditor most concerned about in auditing the purchases, payables, and payments process? Why?
How do the results of the auditor’s control testing affect the plan to perform substantive procedures?
What substantive audit procedures are often performed for purchases, payables, and cash payments?
Why do auditors frequently choose to test controls in the purchases, payables, and payments process?
What are an auditor’s main concerns related to purchasing and payment transactions? Why?
What are management’s main control objectives related to the purchases process? Why?
What are the main classes of transactions and related account balances for the purchases process?
Specialties Papers Inc. (SPI) makes a unique type of paper that is used in specialized biohazard cleanup operations. Since customers cannot predict when they will need large supplies of the paper,
When an auditor selects a sample of shipping documents and takes the tracing direction of a test to find the related sales invoice copies, the evidence is relevant for deciding which of the
The negative request form of accounts receivable confirmation is most likely to be acceptable in which case? ASSESSED LEVEL OF NUMBER OF SMALL BALANCES IS CONTROL RISK RELATING PROPER CONSIDERATION
In the audit of cash and accounts receivable, the main emphasis should be on which assertion?a. Completeness.b. Existence.c. Obligations.d. Presentation and disclosure.
What is the best reason for prenumbering, in sequence, documents such as sales orders, shipping documents, and sales invoices?a. Enables determination of the accuracy of each document.b. Enables
Which of the following is the most effective technique for detecting suspicious cash transactions between inter-company banks?a. Review the composition of authenticated deposit slips.b. Review
Showing 1700 - 1800
of 2249
First
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23