Significantly fewer responses to confirmation requests are received than expected. [Case 2] Transactions selected for testing...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Significantly fewer responses to confirmation requests are received than expected. [Case 2] Transactions selected for testing are not supported by proper documentation. [Case 3] A. B. C. D. Significant deficiencies in internal control previously communicated to management are not corrected. Case 4 Differences between reconciliations of control accounts and subsidiary records are not investigated. [Case 51 Negative confirmation requests yield fewer responses than in the prior year's audit. 10. Choose correct or incorrect statements. @[Case 1] is an example that an auditor may suspect that material misstatements arising from fraud exist in a client's financial statements. On the contrary, [Case 5] corresponds to a reduced likelihood of material misstatement, Because responses to negative confirmations are only received when there are discrepancies. a lower response rate of the negative confirmations likely would be indicative of fewer problems with accounts receivable. Q Correct statement Incorrect statement Incorrect statement Correct statement (6) Correct statement Incorrect statement. Correct statement Incorrect statement 11. Choose correct or incorrect statements. @[Case 3] vs. [Case 5] Of these cases, an auditor may evaluate that [Case 3] situation is more suspicious about material misstatements of the client's financial statements than [Case 5] situation. 6 [Case 1] vs. [Case 2] Of these cases, an auditor may evaluate that [Case 1] situation is more suspicious about material misstatements of the client's financial statements than [Case 2] situation. In [Case 4], This case is just simple mistakes of client's employees. Therefore, [Case 4] is not an example to be suspicious about material misstatement of the client's financial statements. A. B. C. D. Correct statement Incorrect statement Correct statement Incorrect statement A. B. C. D. b 12. Choose correct or incorrect statements. Correct statement Incorrect statement Incorrect statement Correct statement Correct statement Incorrect statement Incorrect statement Correct statement @If client's internal auditor produce many exception report, this imply that client's internal control system is poorly designed and operated. 6 'Separation of authorization, recording and custody' is no control environment, instead, this element is control activity. b Ⓒ Correct statement Incorrect statement Correct statement Incorrect statement Incorrect statement Incorrect statement Incorrect statement Correct statement Significantly fewer responses to confirmation requests are received than expected. [Case 2] Transactions selected for testing are not supported by proper documentation. [Case 3] A. B. C. D. Significant deficiencies in internal control previously communicated to management are not corrected. Case 4 Differences between reconciliations of control accounts and subsidiary records are not investigated. [Case 51 Negative confirmation requests yield fewer responses than in the prior year's audit. 10. Choose correct or incorrect statements. @[Case 1] is an example that an auditor may suspect that material misstatements arising from fraud exist in a client's financial statements. On the contrary, [Case 5] corresponds to a reduced likelihood of material misstatement, Because responses to negative confirmations are only received when there are discrepancies. a lower response rate of the negative confirmations likely would be indicative of fewer problems with accounts receivable. Q Correct statement Incorrect statement Incorrect statement Correct statement (6) Correct statement Incorrect statement. Correct statement Incorrect statement 11. Choose correct or incorrect statements. @[Case 3] vs. [Case 5] Of these cases, an auditor may evaluate that [Case 3] situation is more suspicious about material misstatements of the client's financial statements than [Case 5] situation. 6 [Case 1] vs. [Case 2] Of these cases, an auditor may evaluate that [Case 1] situation is more suspicious about material misstatements of the client's financial statements than [Case 2] situation. In [Case 4], This case is just simple mistakes of client's employees. Therefore, [Case 4] is not an example to be suspicious about material misstatement of the client's financial statements. A. B. C. D. Correct statement Incorrect statement Correct statement Incorrect statement A. B. C. D. b 12. Choose correct or incorrect statements. Correct statement Incorrect statement Incorrect statement Correct statement Correct statement Incorrect statement Incorrect statement Correct statement @If client's internal auditor produce many exception report, this imply that client's internal control system is poorly designed and operated. 6 'Separation of authorization, recording and custody' is no control environment, instead, this element is control activity. b Ⓒ Correct statement Incorrect statement Correct statement Incorrect statement Incorrect statement Incorrect statement Incorrect statement Correct statement
Expert Answer:
Answer rating: 100% (QA)
10 Choose correct or incorrect statements ANSWER c Incorrect statement Correct statement EXPLANATIO... View the full answer
Related Book For
Value at Risk The New Benchmark for Managing Financial Risk
ISBN: 978-0071464956
3rd edition
Authors: Philippe Jorion
Posted Date:
Students also viewed these accounting questions
-
Spain and Italy only trade with each other. Each produces olive and cheese. The production of olive is relatively labor-intensive, and the production of cheese is relatively capital-intensive. Spain...
-
The auditor determines that there may be misstatements in the inventory and cost of goods sold account. During the conduct of the audit, the auditor found a material weakness in internal controls in...
-
These transactions took place for Bramson Co. 2016 May 1 Received a $5,000, 12-month, 6% note in exchange for an outstanding account receivable from R. Stoney. Dec. 31 Accrued interest revenue on the...
-
What does a SWOT analysis reveal about the overall attractiveness of lululemon's situation?
-
What motivates companies like Starbucks to expand into international markets with little perceived interest for their product?
-
Use a query to show the invoices and invoice totals in Figure P7.17. Sort the results by customer code and then by invoice number. Figure P7.17 Invoice Totals by Customer CUS_CODE INV_NUMBER Invoice...
-
What reasons can you give in support of, and against, the development of separate financial accounting guidelines and standards that reflect the financial consequences of environmental issues?
-
Major League Bat Company manufactures baseball bats. In addition to its goods in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as...
-
New product & service design represents a vital activity to ensure sustainable competitive advantage. Provide your answer to the following questions: 1. How Research & Development activities...
-
Muscle Pro is a (fictional) public company engaged in selling protein powders and other performance-enhancing supplements. In 20x2, Muscle Pro was sued by a supplier alleging that Muscle Pro did not...
-
Suppose that f(x)dx = 5, f f(x)dx g(x)dx = 2. Then compute the value of the definite integral * (3f(x) - 4g(x)) dr Solution: = -3, f g(x)dx = 1, and that
-
153. Louis pasteur by careful experimentation demonstrated that life comes only from pre-existing life. Which theory was dismissed from his experiment? (1) Chemical evolution theory (2) Spontaneous...
-
An annuity providing a rate of return of 5% compounded monthly was purchased for $54,000. The annuity pays $480 at the end of each month. e. What will be the amount of the final payment?
-
Question Content Area Total sales less the sales price of any goods returned by customers, less any reduction in price given to customers, less cash discounts allowed by the seller, is called a....
-
6. A maintenance project consists of 10 activities labeled A, B, ..., J. The durations (in days) and precedence for the activities are given below. Activity AAVAHE B D F G HI J Activity A mo Ami B...
-
P 288 ne 2010 8 A uniform solid is made of a hemisphere with centre O and radius 0.6 m, and a cylinder of radius 0.6 m and height 0.6 m. The plane face of the hemisphere and a plane face of the...
-
Calculating Manufacturing Overhead Rates Windsor Company, accumulated the following data for 2017: Milling Department manufacturing overhead $187,200 Finishing Department manufacturing overhead...
-
Evaluate the line integral, where C is the given curve. C x 2 dx + y 2 dy, C consists of the arc of the circle x 2 + y 2 = 4 from (2, 0) to (0, 2) followed by the line segment from (0, 2) to (4, 3)
-
Discuss what techniques could be used to meet quality of service requirements for multimedia applications in the following components of a system: Process scheduler Disk scheduler Memory manager
-
Show that, if the wait() and signal() semaphore operations are not executed atomically, then mutual exclusion may be violated.
-
Contrast unicasting, multicasting, and broadcasting as techniques for delivering content across a computer network.
-
Fill in the Blank. In the finite element method, \(a(n)\) ___________ solution is assumed within each element.
-
The stiffness matrix of a bar element is given by a. \(\frac{E A}{l}\left[\begin{array}{ll}1 & 1 \\ 1 & 1\end{array} ight]\) b. \(\frac{E A}{l}\left[\begin{array}{rr}1 & -1 \\ -1 & 1\end{array}...
-
What is the basis for the derivation of transformation matrices?
Study smarter with the SolutionInn App