True or False. Justify your answer 1. An industry is considered specialized because they don't adhere...

 

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True or False. Justify your answer 1. An industry is considered specialized because they don't adhere to a certain set of reporting standards 2. Any licensed practitioner can enter into engagements involving specialized industries 3. The audit team must have a partner who has the expertise required in an engagement for them to be qualified to accept it 4. In an audit report, the auditor will state a disclaimer assigning the sole responsibility on certain areas to the expert involved 5. The auditor can consult to an expert who is employed by the client on a contractual basis 6. Prior knowledge on the business or industry of the client is required before accepting the engagement 7. Having a management's expert helps reduce the work of the auditor since the financial statements were technically compliant with the financial reporting standards 8. An audit report can still be unqualified even if it states a reference with the auditor expert's work 9. The main determinant for an industry to be considered specialized as their volume of annual transactions and market competition situation 10. Experience plays a big role to have sufficient competence and skills to handle specialized industry clients making a small-time firm to be unqualified to accept this type of engagements. Provide the relevant Philippine Financial Reporting Standards/Philippine Accounting Standards on the following entities. 1. Security Bank 2. Philippine Airlines 3. Vineyard Specialized Industries. Give a short insight on the following concepts discussed. 1. Cite the main difference of Concern between PSA 500 and PSA 620 2. Cite the main point of difference between PSA 220 and PSA 620 3. Relevance of PSA 300 to audit of specialized industries 4. Expert's integrity. Cite the standard used as basis 5. Transition of responsibility of the auditor and the expert True or False. Justify your answer 1. An industry is considered specialized because they don't adhere to a certain set of reporting standards 2. Any licensed practitioner can enter into engagements involving specialized industries 3. The audit team must have a partner who has the expertise required in an engagement for them to be qualified to accept it 4. In an audit report, the auditor will state a disclaimer assigning the sole responsibility on certain areas to the expert involved 5. The auditor can consult to an expert who is employed by the client on a contractual basis 6. Prior knowledge on the business or industry of the client is required before accepting the engagement 7. Having a management's expert helps reduce the work of the auditor since the financial statements were technically compliant with the financial reporting standards 8. An audit report can still be unqualified even if it states a reference with the auditor expert's work 9. The main determinant for an industry to be considered specialized as their volume of annual transactions and market competition situation 10. Experience plays a big role to have sufficient competence and skills to handle specialized industry clients making a small-time firm to be unqualified to accept this type of engagements. Provide the relevant Philippine Financial Reporting Standards/Philippine Accounting Standards on the following entities. 1. Security Bank 2. Philippine Airlines 3. Vineyard Specialized Industries. Give a short insight on the following concepts discussed. 1. Cite the main difference of Concern between PSA 500 and PSA 620 2. Cite the main point of difference between PSA 220 and PSA 620 3. Relevance of PSA 300 to audit of specialized industries 4. Expert's integrity. Cite the standard used as basis 5. Transition of responsibility of the auditor and the expert

Answer rating: 100% (QA)

Q1 1 False An industry is considered specialized because they have their own unique set of reporting standards 2 True Any licensed practitioner can enter into engagements involving specialized industr... View the full answer