Risk assessment procedures include the following, except a. Analytical procedures. b. Confirmation of accounts receivablec. Observation and inspection.d. Inquiries of management

Risk assessment procedures include the
following, except
a. Analytical procedures.
b. Confirmation of accounts receivable
c. Observation and inspection.
d. Inquiries of management
by

1 Answer

Answer :

Confirmation of accounts receivable
by

Related questions

Which of the following procedures ordinarily performed during an audit are also performed in review? a. Assessment of accounting and internal control systems b. Test of controls c. Tests of records and of responses to inquiries d. Inquiry and analytical procedures

Description : Which of the following procedures ordinarily performed during an audit are also performed in review? a. Assessment of accounting and internal control systems b. Test of controls c. Tests of records and of responses to inquiries d. Inquiry and analytical procedures

Last Answer : Inquiry and analytical procedures

Which of the following statements concerning analytical procedures is true? a. Analytical procedures are more efficient, but not more effective, than tests of details of transactions. b. Analytical procedures used as risk assessment procedures use data aggregated at a high level. c. Analytical procedures can replace tests of controls in gathering audit evidence to support the assessed level of control risk. d. Analytical procedures usually involve comparisons of ratios developed from recorded amounts with ratios developed by management

Description : Which of the following statements concerning analytical procedures is true? a. Analytical procedures are more efficient, but not more effective, than tests of details of transactions. ... usually involve comparisons of ratios developed from recorded amounts with ratios developed by management

Last Answer : Analytical procedures used as risk assessment procedures use data aggregated at a high level.

Which of the following procedures is normally performed in connection with a compilation engagement? a. Inquire of management about subsequent events b. Making inquiries of management concerning actions taken at board meeting c. Applying analytical review procedures d. Collect, classify and summarize financial information

Description : Which of the following procedures is normally performed in connection with a compilation engagement? a. Inquire of management about subsequent events b. Making inquiries of management ... meeting c. Applying analytical review procedures d. Collect, classify and summarize financial information

Last Answer : Collect, classify and summarize financial information

For initial audits, additional matters the auditor may consider in the overall audit strategy and audit plan include the following except a. Major issues including the application of accounting principles or any auditing and reporting standards discussed with management. b. Confirmation of material accounts receivable balance at the end of the year. c. Planned audit procedure to obtain sufficient appropriate audit evidence regarding opening balances. d. Assignment of firm personnel with appropriate levels of capabilities and competence to respond to anticipated significant risks

Description : For initial audits, additional matters the auditor may consider in the overall audit strategy and audit plan include the following except a. Major issues including the application of ... firm personnel with appropriate levels of capabilities and competence to respond to anticipated significant risks

Last Answer : Confirmation of material accounts receivable balance at the end of the year.

Which of the following is most likely to be a response to the auditor's assessment that the risk of material misstatement due to fraud for the existence of inventory is high? a. Observe test counts of inventory at certain locations on an unannounced basis. b. Perform analytical procedures rather than taking test counts. c. Request that inventories be counted prior to year end. d. Request that inventory counts at the various locations be counted on different dates so as to allow the same auditor to be present at every count

Description : Which of the following is most likely to be a response to the auditor's assessment that the risk of material misstatement due to fraud for the existence of inventory is high? a. Observe test counts ... be counted on different dates so as to allow the same auditor to be present at every count

Last Answer : Observe test counts of inventory at certain locations on an unannounced basis.

For the purpose of expressing negativeassurance in the review report, thepractitioner should obtain sufficientappropriate evidence primarily througha. Inquiry and confirmationb. Confirmation and tests of controlsc. Inquiry and analytical proceduresd. Analytical procedures and substantivetests of details of transactions andaccount balances

Description : For the purpose of expressing negativeassurance in the review report, the practitioner should obtain sufficient appropriate evidence primarily through a. Inquiry and confirmation b. Confirmation and ... d. Analytical procedures and substantive tests of details of transactions and account balances

Last Answer : Inquiry and analytical procedures

When planning the audit, if the auditor has no reason to believe that illegal acts exist, the auditor should a. Include audit procedures which have a strong probability of detecting illegal acts. b. Make inquiries of management regarding their policies and regarding their knowledge of violations, and then rely on normal audit procedures to detect errors, irregularities, and illegalities. c. Still include some audit procedures designed specifically to uncover illegalities. d. Ignore the topic

Description : When planning the audit, if the auditor has no reason to believe that illegal acts exist, the auditor should a. Include audit procedures which have a strong probability of detecting illegal ... c. Still include some audit procedures designed specifically to uncover illegalities. d. Ignore the topic

Last Answer : Make inquiries of management regarding their policies and regarding their knowledge of violations, and then rely on normal audit procedures to detect errors, irregularities, and illegalities

When planning the audit, if the auditor has no reason to believe that illegal acts exist, the auditor should a. Make inquiries of management regarding their policies and their knowledge of violations, and then rely on normal audit procedures to detect errors, irregularities, and illegalities. b. Still include some audit procedures designed specifically to uncover illegalities. c. Ignore the topic. d. Include audit procedures which have a strong probability of detecting illegal acts

Description : When planning the audit, if the auditor has no reason to believe that illegal acts exist, the auditor should a. Make inquiries of management regarding their policies and their knowledge of ... Ignore the topic. d. Include audit procedures which have a strong probability of detecting illegal acts

Last Answer : Make inquiries of management regarding their policies and their knowledge of violations, and then rely on normal audit procedures to detect errors, irregularities, and illegalities

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding a. Disagreements the predecessor had with the client concerning auditing procedures and accounting principles. b. The predecessor’s evaluation of matters of continuing accounting significance. c. The degree of cooperation the predecessor received concerning the inquiry of the client’s lawyer. d. The predecessor’s assessments of inherent risk and judgments about materiality

Description : Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding a. Disagreements the predecessor had with the client concerning auditing ... lawyer. d. The predecessor's assessments of inherent risk and judgments about materiality

Last Answer : Disagreements the predecessor had with the client concerning auditing procedures and accounting principles.

A successor auditor most likely would make specific inquiries of the predecessor auditor regarding a. Specialized accounting principles of the client's industry. b. Disagreements with management as to auditing procedures. c. The competency of the client's internal audit staff. d. The uncertainty inherent in applying sampling procedures.

Description : A successor auditor most likely would make specific inquiries of the predecessor auditor regarding a. Specialized accounting principles of the client's industry. b. Disagreements with management as to ... the client's internal audit staff. d. The uncertainty inherent in applying sampling procedures.

Last Answer : Disagreements with management as to auditing procedures

Which of the following represents a procedure that the auditor may use because plausible relationships among financial statement balances are expected to exist? a. Attributes testing b. Enterprise risk assessment c. Inherent tests of control d. Analytical review

Description : Which of the following represents a procedure that the auditor may use because plausible relationships among financial statement balances are expected to exist? a. Attributes testing b. Enterprise risk assessment c. Inherent tests of control d. Analytical review

Last Answer : Analytical review

Auditors would normally interview all but which of the following individuals as part of their assessment of fraud risk? a. Senior management b. Audit committee c. Various employees whose duties do not include normal financial reporting responsibilities d. All of the above

Description : Auditors would normally interview all but which of the following individuals as part of their assessment of fraud risk? a. Senior management b. Audit committee c. Various employees whose duties do not include normal financial reporting responsibilities d. All of the above

Last Answer : All of the above

Which of the following statements would least likely appear in an auditor's engagement letter? a. Our engagement is subject to the risk that material errors, fraud, and defalcations, if they exist, will not be detected. b. During the course of our audit we may observe opportunities for economy in, or improved controls over, your operations. c. After performing our preliminary analytical procedures we will discuss with you the other procedures we consider necessary to complete the engagement. d. Fees for our services are based on our regular per diem rates, plus travel and other out-of-pocket expenses

Description : Which of the following statements would least likely appear in an auditor's engagement letter? a. Our engagement is subject to the risk that material errors, fraud, and defalcations, if they exist, ... services are based on our regular per diem rates, plus travel and other out-of-pocket expenses

Last Answer : After performing our preliminary analytical procedures we will discuss with you the other procedures we consider necessary to complete the engagement.

Which of the following is not required by PSA No. 315, "Consideration of Fraud in a Financial Statement Audit"? a. Conduct a continuing assessment of the risks of material misstatement due to fraud throughout the audit. b. Conduct a discussion by the audit team of the risks of material misstatement due to fraud. c. Conduct inquiries of the audit committee as to their views about the risks of fraud and their knowledge of any fraud or suspected fraud. d. Conduct the audit with professional skepticism, which includes an attitude that assumes balances are incorrect until verified by the audito

Description : Which of the following is not required by PSA No. 315, "Consideration of Fraud in a Financial Statement Audit"? a. Conduct a continuing assessment of the risks of material ... professional skepticism, which includes an attitude that assumes balances are incorrect until verified by the audito

Last Answer : Conduct the audit with professional skepticism, which includes an attitude that assumes balances are incorrect until verified by the audito

Which of the following should be included in the audit plan? I. The nature, timing and extent of planned risk assessment procedures. II. The nature, timing and extent of planned further audit procedures at the assertion level. a. I only b. II only c. Both I and II d. Neither I nor II

Description : Which of the following should be included in the audit plan? I. The nature, timing and extent of planned risk assessment procedures. II. The nature, timing and extent of planned further audit procedures at the assertion level. a. I only b. II only c. Both I and II d. Neither I nor II

Last Answer : Both I and II

In the planning stage of an audit engagement, the auditor is required to perform audit procedures to obtain an understanding of the entity and its environment, including its internal control. These procedures are called a. Substantive tests b. Tests of controls c. Risk assessment procedures d. Dual-purpose tests

Description : In the planning stage of an audit engagement, the auditor is required to perform audit procedures to obtain an understanding of the entity and its environment, including its internal control. These ... a. Substantive tests b. Tests of controls c. Risk assessment procedures d. Dual-purpose tests

Last Answer : Risk assessment procedures

The review of unaudited financial statements consists of: a. Inquiry of management and analytical procedures. b. Inquiry of management and documentation of internal controls. c. Analytical procedures and compliance with laws and regulations. d. Internal control evaluation and management representation.

Description : The review of unaudited financial statements consists of: a. Inquiry of management and analytical procedures. b. Inquiry of management and documentation of internal controls. c. Analytical ... and compliance with laws and regulations. d. Internal control evaluation and management representation.

Last Answer : Inquiry of management and analytical procedures

Non-assurance engagements include all of the following services, except: a. Agreed-upon procedures engagements. b. Compilations of financial or other information. c. Management and tax consulting. d. Examination of prospective financial information

Description : Non-assurance engagements include all of the following services, except: a. Agreed-upon procedures engagements. b. Compilations of financial or other information. c. Management and tax consulting. d. Examination of prospective financial information

Last Answer : Examination of prospective financial information

Engagements frequently performed by professional accountants that are not assurance engagements include the following except a. Compilation b. Agreed-upon procedures. c. Compliance audit d. Management consulting

Description : Engagements frequently performed by professional accountants that are not assurance engagements include the following except a. Compilation b. Agreed-upon procedures. c. Compliance audit d. Management consulting

Last Answer : Compliance audit

The Framework of Philippine Standards on Auditing distinguishes audits from related services. Related services include all of the following, except a. Reviews. b. Compilations. c. Agreed-upon procedures. d. Management consulting.

Description : The Framework of Philippine Standards on Auditing distinguishes audits from related services. Related services include all of the following, except a. Reviews. b. Compilations. c. Agreed-upon procedures. d. Management consulting.

Last Answer : Management consulting.

Non-assurance engagements include all of the following except a. Compliance audit. b. Management consulting. c. Agreed-upon procedures. d. Preparation of tax returns where no conclusion is expressed.

Description : Non-assurance engagements include all of the following except a. Compliance audit. b. Management consulting. c. Agreed-upon procedures. d. Preparation of tax returns where no conclusion is expressed.

Last Answer : Compliance audit.

The firm should obtain written confirmation of compliance with its policies and procedures on independence from all firm personnel required to be independent by the Code of Ethics at least: a. Annually b. Every 3 years c. Every 2 years d. Every 5 years

Description : The firm should obtain written confirmation of compliance with its policies and procedures on independence from all firm personnel required to be independent by the Code of Ethics at least: a. Annually b. Every 3 years c. Every 2 years d. Every 5 years

Last Answer : Annually

Which of the following should the auditors normally interview as part of their assessment of fraud risk? a. Senior management b. Audit committee c. Various employees whose duties financial reporting responsibilities d. All of the given choices

Description : Which of the following should the auditors normally interview as part of their assessment of fraud risk? a. Senior management b. Audit committee c. Various employees whose duties financial reporting responsibilities d. All of the given choices

Last Answer : All of the given choices

In the preparation of an audit program, which of the following items is not essential? a. Assessment of inherent risk b. The preparation of a budget identifying the costs of resources needed c. A review of material from prior audits d. An understanding of controls established by management

Description : In the preparation of an audit program, which of the following items is not essential? a. Assessment of inherent risk b. The preparation of a budget identifying the costs of resources needed c. A review of material from prior audits d. An understanding of controls established by management

Last Answer : The preparation of a budget identifying the costs of resources needed

Which of the following is not an assurance engagement? a. Risk Assessment Service b. Information System Reliability Service c. Business Performance Measurement d. Management Consulting Service

Description : Which of the following is not an assurance engagement? a. Risk Assessment Service b. Information System Reliability Service c. Business Performance Measurement d. Management Consulting Service

Last Answer : Management Consulting Service

In planning the audit engagement, the auditor should consider each of the following, except a. Matters relating to the entity's business and the industry in which it operates. b. Materiality level and audit risk. c. The kind of opinion (unmodified, qualified, or adverse) that is likely to be expressed. d. The entity's accounting policies and procedures.

Description : In planning the audit engagement, the auditor should consider each of the following, except a. Matters relating to the entity's business and the industry in which it operates. b. Materiality level and ... or adverse) that is likely to be expressed. d. The entity's accounting policies and procedures.

Last Answer : The kind of opinion (unmodified, qualified, or adverse) that is likely to be expressed

An audit plan is a a. Detailed plan of analytical procedures and all substantive tests to be performed in the course of the audit. b. Document that provides an overview of the company and a general plan for the audit work to be accomplished, timing of the work, and other matters of concern to the audit. c. Generic document that auditing firms have developed to lead the process of the audit through a systematic and logical process. d. Budget of the time that should be necessary to complete each phase of the audit procedure

Description : An audit plan is a a. Detailed plan of analytical procedures and all substantive tests to be performed in the course of the audit. b. Document that provides an overview of the company and a ... process. d. Budget of the time that should be necessary to complete each phase of the audit procedure

Last Answer : Document that provides an overview of the company and a general plan for the audit work to be accomplished, timing of the work, and other matters of concern to the audit.

Which of the following is true of the report based on agreed-upon-procedures? a. The report is restricted to those parties who have agreed to the procedures to be performed. b. The CPA provides the recipients of the report limited assurance as to reasonableness of the assertion(s) presented in the financial information. c. The report states that the auditor has not recognized any basis that requires revision of financial statements. d. The report should state that the procedures performed are limited to analytical procedures and inquiry

Description : Which of the following is true of the report based on agreed-upon-procedures? a. The report is restricted to those parties who have agreed to the procedures to be performed. b. The CPA ... . d. The report should state that the procedures performed are limited to analytical procedures and inquiry

Last Answer : The report is restricted to those parties who have agreed to the procedures to be performed

An audit plan is a a. Detailed plan of analytical proceduresand all substantive tests to be performedin the course of the audit.b. Generic document that auditing firmshave developed to lead the process ofthe audit through a systematic andlogical process.c. Budget of the time that should benecessary to complete each phase of theaudit procedures.d. Document that provides an overviewof the company and a general planfor the audit work to beaccomplished, timing of the work,and other matters of concern to theaudit

Description : An audit plan is a a. Detailed plan of analytical proceduresand all substantive tests to be performed in the course of the audit. b. Generic document that auditing firms have developed to lead the ... audit work to be accomplished, timing of the work, and other matters of concern to the audit

Last Answer : Document that provides an overview of the company and a general plan for the audit work to be accomplished, timing of the work, and other matters of concern to the audit

A basic premise underlying analytical procedures is that a. The study of financial ratios is an acceptable alternative to the investigation of unusual fluctuations. b. Plausible relationships among data may reasonably be expected to exist and continue in the absence of known conditions to the contrary. c. These procedures cannot replace tests of details of transactions and balances. d. Statistical tests of financial information may lead to the detection of material misstatements in the financial statements.

Description : A basic premise underlying analytical procedures is that a. The study of financial ratios is an acceptable alternative to the investigation of unusual fluctuations. b. Plausible relationships ... financial information may lead to the detection of material misstatements in the financial statements.

Last Answer : Plausible relationships among data may reasonably be expected to exist and continue in the absence of known conditions to the contrary.

Auditors perform analytical procedures in the planning stage of an audit for the purpose of: a. Determining which of the financial statement assertions are the most important for the client's financial statements. b. Determining the nature, timing, and extent of audit procedures for auditing the inventory. c. Deciding the matters to cover in an engagement. d. Identifying unusual conditions that deserve more auditing effort

Description : Auditors perform analytical procedures in the planning stage of an audit for the purpose of: a. Determining which of the financial statement assertions are the most important for the client's ... matters to cover in an engagement. d. Identifying unusual conditions that deserve more auditing effort

Last Answer : Identifying unusual conditions that deserve more auditing effort

Which of the following procedures would an auditor be most likely to perform in planning a financial statement audit? a. Reviewing investment transactions of the audit period to determine whether related parties were created. b. Performing analytical procedures to identify areas that may represent specific risks. c. Obtaining a written representation letter from the client to emphasize management's responsibilities. d. Reading the minutes of stockholder and director meetings to discover whether any unusual transactions have occurred.

Description : Which of the following procedures would an auditor be most likely to perform in planning a financial statement audit? a. Reviewing investment transactions of the audit period to determine ... the minutes of stockholder and director meetings to discover whether any unusual transactions have occurred.

Last Answer : Performing analytical procedures to identify areas that may represent specific risks.

Inquiries directed towards those charged with governance may most likely a. Relate to their activities concerning the design, and effectiveness of the entity's internal control and whether management has satisfactorily responded to any findings from these activities. b. Help the auditor understand the environment in which the financial statements are prepared. c. Relate to changes in the entity's marketing strategies, sales trends, or contractual arrangements with its customers. d. Help the auditor in evaluating the appropriateness of the selection and application of certain accounting policies

Description : Inquiries directed towards those charged with governance may most likely a. Relate to their activities concerning the design, and effectiveness of the entity's internal control and ... the auditor in evaluating the appropriateness of the selection and application of certain accounting policies

Last Answer : Help the auditor understand the environment in which the financial statements are prepared.

When performing a compilation engagement, the accountant is required to a. Make inquiries of management to assess the reliability and completeness of the information provided. b. Assess internal controls. c. Verify matters and explanations. d. Obtain a general knowledge of the business and operations of the entity.

Description : When performing a compilation engagement, the accountant is required to a. Make inquiries of management to assess the reliability and completeness of the information provided. b. Assess internal controls. ... explanations. d. Obtain a general knowledge of the business and operations of the entity.

Last Answer : Obtain a general knowledge of the business and operations of the entity.

At the beginning of the current audit engagement, the auditor should perform key preplanning activities which include all of the following except: a. Performing procedures regarding client acceptance or continuance. b. Evaluating compliance with ethical requirements. c. Establishing an understanding of the terms of the engagement. d. Considering internal contro

Description : At the beginning of the current audit engagement, the auditor should perform key preplanning activities which include all of the following except: a. Performing procedures regarding client acceptance ... c. Establishing an understanding of the terms of the engagement. d. Considering internal contro

Last Answer : Considering internal contro

Assurance engagement include the following, except a. An engagement conducted to provide a high level of assurance that the subject matter conforms in all material respects with identified suitable criteria. b. An engagement conducted to provide a moderate level of assurance that the subject matter is plausible in the circumstances. c. An engagement in accordance with the Philippine Standard on Assurance Engagement(s). d. An engagement to perform agreedupon procedures

Description : Assurance engagement include the following, except a. An engagement conducted to provide a high level of assurance that the subject matter conforms in all material respects with identified suitable ... Philippine Standard on Assurance Engagement(s). d. An engagement to perform agreedupon procedures

Last Answer : An engagement to perform procedures.

Audit programs should be designed so that a. Most of the required procedures can be performed as interim work. b. The audit evidence gathered supports the auditor’s conclusions. c. Inherent risk is assessed at a sufficiently low level. d. The auditor can make constructive suggestions to management

Description : Audit programs should be designed so that a. Most of the required procedures can be performed as interim work. b. The audit evidence gathered supports the auditor's conclusions. c. ... is assessed at a sufficiently low level. d. The auditor can make constructive suggestions to management

Last Answer : The audit evidence gathered supports the auditor’s conclusions.

Which of the following matters would an auditor most likely consider when establishing the scope of the audit?a. Audit areas where there is a higher risk of material misstatement. b. The expected audit coverage, including the number and locations of the entity's components to be included. c. The entity's timetable for reporting, such as at interim and final stages. d. The discussion with the entity's management concerning the expected communications on the status of audit work throughout the engagement and the expected deliverables resulting from the audit procedures.

Description : Which of the following matters would an auditor most likely consider when establishing the scope of the audit? a. Audit areas where there is a higher risk of material misstatement. ... status of audit work throughout the engagement and the expected deliverables resulting from the audit procedures.

Last Answer : The expected audit coverage, including the number and locations of the entity's components to be included.

The element of the audit planning process most likely to be agreed upon with the client before implementation of the audit strategy is the determination of the a. Procedures to be undertaken to discover litigation, claims, and assessments. b. Timing of inventory observation procedures to be performed. c. Evidence to be gathered to provide asufficient basis for the auditor's opinion.d. Pending legal matters to be included inthe inquiry of the client's attorney.

Description : The element of the audit planning process most likely to be agreed upon with the client before implementation of the audit strategy is the determination of the a. Procedures to be undertaken to discover ... opinion. d. Pending legal matters to be included in the inquiry of the client's attorney.

Last Answer : Timing of inventory observation procedures to be performed

The element of the audit planning process most likely to be agreed upon with the client before implementation of the audit strategy is the determination of the a. Timing of inventory observation procedures to be performedb. Evidence to be gathered to provide asufficient basis for the auditor's opinion.c. Procedures to be undertaken to discoverlitigation, claims, and assessments.d. Pending legal matters to be included inthe inquiry of the client's attorney

Description : The element of the audit planning process most likely to be agreed upon with the client before implementation of the audit strategy is the determination of the a. Timing of inventory observation ... assessments. d. Pending legal matters to be included in the inquiry of the client's attorney

Last Answer : Timing of inventory observation procedures to be performed.

.As part of audit planning, CPAs should design audit programs for each individual audit and should include audit steps and procedures to a. Ensure that only material items are audited. b. Provide assurance that the objectives of the audit are met. c. Detect and eliminate fraud. d. Increase the amount of management information available

Description : .As part of audit planning, CPAs should design audit programs for each individual audit and should include audit steps and procedures to a. Ensure that only material items are audited. b. Provide ... are met. c. Detect and eliminate fraud. d. Increase the amount of management information available

Last Answer : Provide assurance that the objectives of the audit are met.

Unlike consulting services, in assurance services: a. There is confirmation that financial statement assertions are accurate. b. Misstated account balances are generally corrected by an independent audit. c. Ineffective internal controls may exist. d. Competing interests may exist between management and the users of statements

Description : Unlike consulting services, in assurance services: a. There is confirmation that financial statement assertions are accurate. b. Misstated account balances are generally corrected by an independent audit. ... may exist. d. Competing interests may exist between management and the users of statements

Last Answer : Competing interests may exist between management and the users of statements

Which of the following conditions identified during fieldwork of an audit is most likely to affect the auditor’s assessment of the risk of misstatement due to fraud? a. Year-end adjusting journal entries. b. Checks for significant amounts outstanding at year-end. c. Missing documents. d. Computer generated documents

Description : Which of the following conditions identified during fieldwork of an audit is most likely to affect the auditor's assessment of the risk of misstatement due to fraud? a. Year-end adjusting ... for significant amounts outstanding at year-end. c. Missing documents. d. Computer generated documents

Last Answer : Missing documents

An engagement quality control review is required to be performed: a. Immediately after the re-assessment of control risk. b. At engagement completion after the report is issued. c. For all audits of financial statements of listed entitiesd. For all types of audits, regardless of the subject matter of the engagement..

Description : An engagement quality control review is required to be performed: a. Immediately after the re-assessment of control risk. b. At engagement completion after the report is issued. c. For all audits of ... listed entities. d. For all types of audits, regardless of the subject matter of the engagement.

Last Answer : For all audits of financial statements of listed entities

Which statement best describes the emphasis of the systems and substantive approaches in the audit plan? a. A thoroughly designed systems approach to auditing can eliminate the need for any substantive procedures. b. The systems approach focuses on detailed testing of specific accounts for accuracy, while the substantive approach is the testing controls to make sure they are effective. c. The systems approach focuses on testing controls to make sure they are effective, while the substantive approach is the detailed testing of specific accounts for accuracy. d. The systems approach focuses on the use of computer systems to aid in the audit while the substantive approach focuses on more manual tests

Description : Which statement best describes the emphasis of the systems and substantive approaches in the audit plan? a. A thoroughly designed systems approach to auditing can eliminate the need for any ... computer systems to aid in the audit while the substantive approach focuses on more manual tests

Last Answer : The systems approach focuses on testing controls to make sure they are effective, while the substantive approach is the detailed testing of specific accounts for accuracy

An auditor may accept an engagement to perform specified procedures on the specific subject matter of specified elements, accounts, or items of a financial statement if a. The report does not list the procedures performed. b. The auditor is also the entity's continuing auditor. c. The financial statements are prepared in accordance with a special purpose framework. d. Use of the report is restricted

Description : An auditor may accept an engagement to perform specified procedures on the specific subject matter of specified elements, accounts, or items of a financial statement if a. The report does not list ... are prepared in accordance with a special purpose framework. d. Use of the report is restricted

Last Answer : Use of the report is restricted

The risk of material financial statement misstatement may be greater when the following conditions exist except a. When there is greater management intervention to specify the accounting treatment. b. When there is sufficient personnel with appropriate accounting and financial reporting skillsc. When there is greater manual intervention for data collection and processing. d. Complex calculations or accounting principles is involved.

Description : The risk of material financial statement misstatement may be greater when the following conditions exist except a. When there is greater management intervention to specify the accounting treatment. ... for data collection and processing. d. Complex calculations or accounting principles is involved

Last Answer : When there is sufficient personnel with appropriate accounting and financial reporting skills

When a CPA is approached to perform an audit for the first time, the CPA should make inquiries of the predecessor auditor. This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor in determining a. Whether, in the predecessor's opinion, internal control of the company has been satisfactory. b. Whether the engagement should be accepted. c. Whether the predecessor's work should be utilized. d. Whether the company follows the policy of rotating its auditors.

Description : When a CPA is approached to perform an audit for the first time, the CPA should make inquiries of the predecessor auditor. This is a necessary procedure because the predecessor may be able to provide ... 's work should be utilized. d. Whether the company follows the policy of rotating its auditors.

Last Answer : Whether the engagement should be accepted.

Before accepting an engagement to audit a new client, a CPA is required to obtain a. An understanding of the prospective client’s industry and business. b. The prospective client’s signature to the engagement letter. c. A preliminary understanding of the prospective client’s control environment. d. The prospective client’s consent to make inquiries of the predecessor auditor, if any.

Description : Before accepting an engagement to audit a new client, a CPA is required to obtain a. An understanding of the prospective client's industry and business. b. The prospective client's signature to ... . d. The prospective client's consent to make inquiries of the predecessor auditor, if any.

Last Answer : The prospective client’s consent to make inquiries of the predecessor auditor, if any.