Question: The two components of professional skepticism are a questioning mind and a critical assessment of the audit evidence. How do these components help an auditor

The two components of professional skepticism are a questioning mind and a critical assessment of the audit evidence. How do these components help an auditor distinguish an unintentional misstatement from an intentional (fraudulent) misstatement?

Step by Step Solution

★★★★★

3.25 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Professional skepticism suggests the auditor should neither assume that man... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

271-B-A-A-A-N (109).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

The two components of the return on asset ratio are a. Gross profit margin and return on equity. b. Net profit margin and earnings per share. c. Net profit margin and total asset turnover. d. Return...

Briefly describe the two components of restaurant forecasting.

Identify and describe the two components of the ROA model both in terms of what financial dimensions they measure and how they are calculated.

1. In your opinion, which step(s) of the accounting cycle is/are the most important and why? 2. In your opinion, which financial statement is the most important? Income Statement, Statement of Owners...

Question 51 1 pts Which of the following statements is a basic element of the auditor's standard report? An audit includes assessing significant estimates made by management. The financial statements...

41. Which of the following controls may prevent the failure to bill customers for some shipments? A. B. C. D. Each shipment should be supported by a prenumbered sales invoice that is accounted for....

17. Which of the following answers below meets the following definition? A control deficiency, or a combination of control deficiencies, that is less severe than a material weakness, but important...

I need the multiple choice questions answers from chapter 4 and 5 of the attached & Monograph...

Please help me I need answers of this. 1. Which of the following factors most likely would cause a CPA not to accept a new audit engagement? 1 point Management reputation for failing to provide...

Assume that the random variable X is normally distributed, with mean = 50 and standard deviation = 7. Compute the following probabilities. Be sure to draw a normal curve with the area corresponding...

The culminating activity for this course will be a comprehensive business plan, presented in a formal report that includes all of the following: Title Page. Table of contents. Business Overview: type...

Evaluate the following geometric sum. k = 0 5 ( - 3 4 ) k k = 0 5 ( - 3 4 ) k = 0 . 4 6 9 7 ( D o not round until the final answer. Then round t o four decimal places a s needed. )

A small pharmaceutical firm plans to manufacture a new drug and has hired you as a consultant to design a condenser to remove the drug from a gasvapor mixture. The mixture, which contains 20 mole% of...

Best Buy Co, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January 28, 2017, are shown next. Liquidity and...

Aaron has $30,000 of adjusted gross income in 2017. His expenses are as follows: Non-prescription medicine ........................................................ $ 100 Prescription medicine...

What are some of the possible reasons for others taking credit for your work? Are any of the reasons justifiable? Why or why not?

What about the rules regarding repeated bankruptcy filings? (See the chart in Exam Review.) Are these rules too onerous, too lenient, or just right?

Shipments of Household Appliances: Line Graphs. The file ApplianceShipments.csv contains the series of quarterly shipments (in millions of dollars) of US household appliances between 1985 and 1989....

What are the two AICPA resource centers to which CPA firms may belong? What are the primary purposes of the two centers?

Multiple Choice Questions The following questions deal with auditing standards. Choose the best response. a. International Standards on Auditing are established by the (1) International Accounting...

Multiple Choice Questions The following questions concern quality control standards. Choose the best response. a. A CPA firm is reasonably assured of meeting its responsibility to provide services...

4 0 , 5 0 0 1 9 , 5 0 0 1 , 4 1 4 4 7 0 1 , 9 0 0 2 7 , 0 0 0 3 , 5 0 0 1 5 6 4 5 0 1 2 this is the order of the annual usage ( units ) $ 0 . 8 0 $ 1 . 2 0 $ 4 . 7 5 $ 1 2 . 7 5 $ 2 . 0 0 $ 0 . 1 4 $...

You will assume that you still work as a financial analyst for AirJet Best Parts, Inc. The company is considering a capital investment in a new machine and you are in charge of making a...

CAPITAL BUDGETING CRITERIA: MUTUALLY EXCLUSIVE PROJECTS A firm with a WACC of 10% is considering the following mutually exclusive projects: 2 4 Project 1-$400 $65 $65$65 160 $160 Project 2$550 $300...