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
principles of auditing and other assurance services
Questions and Answers of
Principles Of Auditing And Other Assurance Services
Jason Hirsch, engagement partner for the December 31, 1999 Flowmeter, Inc. financial statement audit, is aware that events and transactions which took place after December 31, 1999 (but before he
Windek is nearing completion of an audit of the financial statements of Jubilee, Inc. for the year ended December 31, 1999. Windek is currently concerned that subsequent events may require adjustment
An independent auditor has completed substantive tests of balance sheet and income statement accounts, and now plans to begin procedures designed to determine whether there are any loss contingencies
Statement on Auditing Standards No. 19, "Client Representations," requires that an independent auditor obtain a written representation letter from management, and precludes the auditor from issuing
Drafting a Management Represejitntion Letter L. B. Feldman is completing the June 30, 1999, audit of Carter, Rice, Storrs & Bement, a manufacturer and supplier of paper products. The company has
During the audit of the financial statements of Amis Manufacturing, Inc., the company's president, R. Alderman, and E. K. Luddy, the auditor, reviewed matters that were supposed to be included in a
Throughout an engagement, the independent auditor makes observations, documents evidence, confirms transactions, tests accounting data, compares recorded amounts, and makes many inquiries, all vkfith
The daily financial press is replete with newsworthy releases that bear on the financial operations of publicly traded corporations. Not coincidentally, some of the releases translate to significant
Compare and contrast assurance and attestation services.
Discuss why entry into the assurance services market is important to public accounting firms.
Explain what is meant by a compilation and by a review of financial statements.
Describe the purpose of, and give examples of analytical procedures performed in, a review of financial statements.
In what situations might an independent accountant review interim financial information?
Why are costs, expenses, deferrals, and accruals often estimated to a greater extent in interim than in annual financial statements?
What is a "comprehensive basis of accounting other than GAAP"?
To what does an auditor's opinion relate when an entity's financial statements are prepared on a comprehensive basis of accounting other than GAAP?
Explain the purpose of letters for underwriters.
Explain the difference between a financial forecast and a financial projection.
What does a report on personal financial statements typicallv address?
Under what conciitions might an independent accountant report on the application of accounting principles?
Which of the following would not be considered an attestation engagement under SSAE No. 1, "Attestation Standards"?a. A compilation of financial statements.b. A letter for an underwriter.c. A report
In a review engagement, the independent accountant's procedures include:a. Examining bank reconciliations.b. Confirming accounts receivable with debtors.c. Reading the financial statements to
Which of the following is correct about the AlCPA's attestation standards?a. The attestation standards supersede generally accepted auditing standards.b. The attestation standards supersede generally
Which of the following procedures is not appropriate to a review of interim financial information?a. Confirm cash balances with all banks and depositories.b. Make inquiries concerning the accounting
When engaged to express an opinion on one or more specified elements, accounts, or items of a financial statement, an auditor:a. May not describe auditing procedures applied.b. Should advise that
Statement on Auditing Standards No. 62, "Special Reports," is explicit about what is meant by a comprehensive basis of accounting other than GAAP. Of the following, which is not a comprehensive basis
Which of the following would not be appropriate to a report on an engagement to apply agreed-upon procedures to specified financial statement items?a. Indicate the intended distribution of the
What is meant by a financial forecast under Statement on Standards for Attestation Engagements No. I, "Attestation Standards" (AT Section 200, entitled "Financial Forecasts and Projections")?a. A
Which of the following is not appropriate for the accountant's report on the results of applying agreed-upon procedures to prospective financial statements?a. State the accountant's opinion on the
Under Statement on Auditing Standards No. 50, "Reports on the Application of Accounting Principles," an independent accountant may give a second opinion on matters relating to a financial statement
VAN Technologies, a value-added network service provider, links subscribing electronic data integration (EDI) networks, receives network transmissions from trading partners, translates transmissions
A compilation of financial statements involves presenting management's assertions in the form of financial statements without expressing any degree of assurance. Nevertheless, even though no
Christopher Rossi, CPA has been engaged by the Barrington Company, a nonpublicly held manufacturer of children's toys, to review Harrington's December 31, 1999 financial statements. Rossi accepts the
Richard Hernstein, who has audited the financial statements of the Century Group, Inc., a publicly held company, for the year ended December 31, 1999, has been asked to perform a limited review of
The limitations on a practitioner's professional responsibilities when associated with unaudited financial statements are often misunderstood, although the risk of misunderstanding can be reduced
Rose & Co., LLP, has completed the audit of the financial statements of Bale & Booster, a partnership, for the year ended December 31, 1999. The financial statements were prepared on the income tax
Management often calls for an independent auditor's assistance. For example, an audit client's management might request that their auditor apply agreed-upon procedures to some, but not all, of the
Describing Findings in an ,^greed-Upon Procedures Engagement Agreed-upon procedures engagements on elements, accounts, or items of a financial statement and on nonfinancial statement assertions
Understanding whether agreed-upon procedures relate to a specified element, account, or item of a financial statement or to a nonfinancial statement assertion is important because the professional
Roger Francoeur, a candidate for town council, is campaigning on a platform of open government and fiscal responsibility. During his campaign, Francoeur requests that you prepare personal financial
Brown received a telephone call from Calhoun, the sole owner and manager of a small company, asking Brown to prepare financial statements for the company. Calhoun told Brown that the statements were
Woolford Marketing, an Internet marketing organization, estimates that by the year 2000, no fewer than 500 million subscribers will access Internet browser services to purchase goods and services
This chapter referenced a number of Statements on Auditing Standards (SASs), Statements on Standards for Accounting and Review Services (SSARSs), and Statements on Standards for Attestation
Distinguish between financial statement auditing, compliance auditing, and internal auditing.
What three responsibilities do generally accepted auditing standards impose in compliance audits of governmental entities?
What is the auditor's responsibility under generally accepted auditing standards to detect direct and material violations of laws and regulations?
What types of audits are addressed in the GAO's Government Auditing Standards'?
In reporting on compliance with laws and regulations, what does the GAO's Government Auditing Standards require an auditor to report?
To whom are reports on compliance with laws and regulations typically distributed?
In what ways does reporting on internal control in an audit under the GAO's Government Auditing Standards differ from reporting on internal control under SAS No. 60, "Communication of Internal
Which governmental entities are required to have a single audit?
What responsibilities are imposed on the auditor by the Single Audit Act Amendment and by OMB Circular A-133, "Audits of States, Local Governments, and Nonprofit Organizations."
Identify the general and specific laws and regulations addressed in the Single Audit Act Amendment and OMB Circular A-128, "Audits of States, Local Governments, and Non-profit Organizations."
Cite several significant events in the development of contemporary internal auditing in the U.S.
What are the major internal audit activities identified in the Institute of Internal Auditors' Statement of Responsibilities of Internal Auditors!
What are the primary sources of an internal auditor's independence as identified in the Institute of Internal Auditors' Statement of Responsibilities of Internal Auditorsl
Outline the overall approach to an internal operational audit. How is this approach similar to other types of audit activities?
How are internal auditing and independent auditing related?
What requirements does SAS No. 65, "The Auditor's Consideration of the Internal Audit Function in an Audit of Financial Statements" impose upon independent auditors regarding internal auditors?
What information should the independent auditor consider when assessing the competence of the internal auditors?
What information should the independent auditor consider when assessing the objectivity of the internal auditors?
The work of internal auditors may affect the nature, timing, and extent of a financial statement audit. What audit areas are most likely to be affected by the work of the internal auditors?
When evaluating the effectiveness of an internal auditor's work, what should the independent auditor consider about the internal auditor?
A governmental auditor is performing an audit of the city of Pawtucket, Rhode Island. The auditor's objective is to determine whether the city's financial statements are presented fairly in all
Which of the following procedures is not appropriate for identifying laws and regulations that management may have overlooked?a. Discussing laws and regulations with the entity's chief financial
Which of the following procedures would likely lend insight into the risk of material misstatement arising from violations of laws and regulations?a. Confirming receivables balances with debtors.b.
In a financial audit under the GAO's Government Auditing Standards, an auditor is not responsible for which of the following?a. Determining whether the financial statements present fairly financial
In reporting on compliance with laws and regulations under the GAO's Government Auditing Standards, which of the following procedures is not appropriate?a. Providing positive assurance on items
In reporting on internal control, the GAO's Government Auditing Standards imposes more responsibility on an auditor than SAS No. 60, "Communication of Internal Control Structure Related Matters Noted
The Single Audit Act evolved because:a. The GAO was overburdened with grant audits.b. Congress preferred that governmental auditors emphasize grant contracts rather than financial statements.c. There
Under the Single Audit Act, specific requirements include:a. Political activity.b. Federal financial reports.c. Eligibility.d. Administrative requirements.Choose the correct answer.
The independence of an internal auditing department will most likely be assured if it reports to the:a. President.b. Controller.c. Treasurer.d. Board of directors.Choose the correct answer.
A major responsibility of internal auditing is to:a. Install sound accounting, financial, and operating controls at reasonable cost.b. Determine the extent of compliance with established policies,
Taylor Sales Corp. maintains a large, full-time internal audit staff that reports directly to the chief accountant. Audit reports prepared by the internal auditors indicate that the system is
When an independent auditor decides that the work performed by internal auditors may have a bearing on the nature, timing, and extent of planned audit procedures, the independent auditor should
When an independent auditor relies on the work of an internal auditor, he or she should examine the internal auditor's work to provide a basis for judging the:a. Qualifications of the internal
Identify and briefly describe two aspects of audit risk that are critical in an auditor's substantive tests of account balances.
Explain the difference between dollar-value estimation and hypothesis testing in audit sampling. Which of the two is more common in auditing?
Define what is meant by an audit population. What is the importance of an auditor's characteristic of interest when defining an audit population?
Identify the relative advantages and disadvantages of probability-proportional-tosize sampling.
Define tolerable error.
Identify three conditions that must exist before either difference or ratio estimation can be applied.
Under what condition is difference estimation more appropriate than ratio estimation?
Assume an auditor sets acceptable risks of incorrect rejection and incorrect acceptance at .10 and .05, respectively, applies ratio estimation, and obtains the following results: estimated population
Briefly describe the auditor's strategy when applying mean-per-unit (MPU) estimation.
Difference and ratio estimation, mean-per-unit estimation, and probability proportional-to-size (PPS) sampling all express sampling results in dollars. How, though, does PPS sampling differ from the
Briefly describe the auditor's strategy when applying probability-proportional-tosize sampling.
Why is probability-proportional-to-size sampling most appropriate when an auditor desires testing for material overstatements?
Under what conditions would an auditor choose a nonstatistical sampling plan in substantive tests of details?
Tolerable error, a measure of the maximum monetary error that may exist in an account balance without causing materially misstated financial statements, is directly related to:a. Precision.b. Audit
Which of the following is necessary to determine sample size?a. Population size.b. Expected population deviation rate.c. Estimated population monetary error.d. Risk.Choose the correct answer.
Which of the following statements is an advantage of classical variables sampling?a. If no errors are expected, classical variables sampling will result in a smaller sample size than
Which of the following situations would increase sample size? A decrease in:a. Risk of incorrect rejection.b. Estimated population standard deviation.c. Expected frequency of errors.d. Tolerable
The risk of incorrect acceptance relates to the:a. Effectiveness of the audit.b. Efficiency of the audit.c. Preliminary estimate of materiality.d. Allowable risk of tolerable error.Choose the correct
Sample results support the conclusion that a recorded account balance is materially misstated but, unknown to the auditor, the account is not misstated, suggesting the risk of:a. Incorrect
Calculate an acceptable risk of incorrect acceptance assuming: (1) audit risk is 5 percent, (2) the risk that the internal controls fail to detect material errors is 40 percent, and (3) the risk that
Assume the acceptable risk of incorrect rejection is .10, the acceptable risk of incorrect acceptance is .075, and tolerable error is $100,000. What is the desired allowance for sampling
In a difference estimation sampling plan for a population of 1,500 items, an auditor found total recorded and audited values for a sample of 100 items to be \($120,000\) and \($126,000,\)
Ratio estimation is inappropriate when:a. The total population book value is known and corresponds to the sum of all population items.b. There are some observed differences between audited and
Probability-proportional-to-size sampling will likely result in selecting a sample with characteristics roughly equivalent to:a. A classical variables sampling plan stratified by dollar amount.b.
Showing 400 - 500
of 1264
1
2
3
4
5
6
7
8
9
10
11
12
13