Question: What is the problem with an auditor over relying on management's representations on the financial statements?

What is the problem with an auditor over relying on management's representations on the financial statements?

Step by Step Solution

★★★★★

3.46 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

During an audit management makes many representations to the auditor both oral and written in respon... View full answer

blur-text-image
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)

Word file Icon

1074-B-A-C(938).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

Reading Readiness, Inc. has provided you its list of accounts and balances as of January 31. The Controller has asked you to prepare an Income Statement for the month ended January 31. Use the...

Q:

What is the problem with a high degree of conforming behavior among group members?

Q:

What is the traditional accounting focus in managing costs over the total life cycle of a product? What is the problem with this focus?

Q:

What is the problem with time lags in technical analysis and why may the analysis lead to self-fulfilling predictions?

Q:

this is for Audit and i need someone who knows all the answers. Auditing -ACCT 460 - Section 1. 1) Who establishes generally accepted auditing standards? a) Public Company Accounting Oversight Board...

Q:

this is for Audit and i need someone who knows all the answers. Auditing -ACCT 460 - Section 1. 1) Who establishes generally accepted auditing standards? a) Public Company Accounting Oversight Board...

Q:

Hi, I am taking accounting class (Auditing & Assurance Services). Please provide original homework. Type up to two pages ( about 500-600 words) and must answer questions clearly. I have solutions for...

Q:

Hi, I am taking accounting class (Auditing & Assurance Services). Please provide original homework. Type up to two pages ( about 500-600 words) and must answer questions clearly. I have solutions for...

Q:

Hi, I am struggling with my homework which is related to auditing class. Please provide original homework. Type up to two pages ( about 500-600 words) and must answer questions clearly. I have...

Q:

identify and explain five examples where executives or directors faced moral hazards and did not deal with them ethically globa ow ied on lendin to be applied on a gh ns nd ie asis The accounting...

Q:

Chapter Four MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Expressing an opinion on whether the financial reports are prepared in...

Q:

The adoption of the realization and matching rules in preparing financial accounts requires a great deal of subjective judgment. Required: Write an essay examining whether it would be fairer, easier...

Q:

Warner Company started business on January 1, 2011. The following transactions and events occurred in 2011 and 2012. For simplicity, information for sales, inventory purchases, collections on...

Q:

Evaluate renaults decision to use the equity method to account for its investment in nissan

Q:

Barbara B. Kuhn (SSN 987-65-4321) purchases a fourplex on January 8, 2013, for $175,000. She allocates $25,000 of the cost to the land, and she deducts MACRS depreciation totaling $16,364. Barbara...

Q:

The thickness of the active zone in an expansive clay is 3 m. The liquid limit of the clay is 50. If the natural moisture content is 20%, what would be the free swell at the ground level?

Q:

Redo Problem 12.20 using Vesics method, assuming that the skin friction is distributed uniformly along the shaft. Problem 12.20 A 600 mm diameter and 25 m long driven concrete pile carries a column...

Q:

The top 5 m in a site consists of a clay with c u = 80 kN/m 2 . This is underlain by a thick clay deposit with c u = 150 kN/m 2 . A 1.0 m diameter and 15 m long straight drilled shaft is constructed...

Q:

Briefly explain how bond premium or discount affects interest expense over the life of a bond.

Q:

In each industry, i. the utility function of a worker is we. All workers in i are in the ith union and the union maximizes we. The union sets a monopoly wage, wi, in the ith industry whose demand...

Q:

Ed Giles and Susan Regas have never been happier than during the past four months since they have been seeing each other. Giles is a 35-year-old CPA and a partner in the medium-sized accounting firm...

Q:

A CEO and CFO of a public company filing a quarterly or annual report with the SEC must consider the requirements of Section 302 of the Sarbanes-Oxley Act. In addition, the Section 302 certification...

Q:

Linda Miller rented 35 acres of pastureland in Wabaunsee County, Kansas, from William Burnett for $1,000 per year. Miller and her husband used the land to grow and harvest brome grass for their...

Q:

A Driver's Ed program is curious if the time of year has an impact on number of car accidents in the U.S. They assume that weather may have a significant impact on the ability of drivers to control...

Q:

Carolina is a single filing California taxpayer. In 2022 her Federal adjusted gross income (AGI) was $230,000. For 2022, what is the amount of her California exemption credit? A. $102 B. $134 C. $140...

Q:

1. A. Estimate the average monthly internet access fee based your data using formulas. Show any formulas needed, show all work and use proper units. Remember that ALL estimates should include an...