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

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
by

1 Answer

Answer :

Confirmation of material accounts
receivable balance at the end of the
year.
by

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If a firm, or a network firm, has a direct financial interest in an audit client of the firm, the self-interest threat created would be so significant no safeguard could reduce the threat to an acceptable level. The action appropriate to permit the firm to perform the engagement would be to a. Dispose of the financial interest. b. Dispose of a sufficient amount of it so that the remaining interest is no longer material. c. Either a or b d. Neither a nor b

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The risk that the audit will fail to uncover a material misstatement is eliminated a. When the auditor has complied with generally accepted auditing standards. b. If client has good internal control. c. If client follows generally accepted accounting principles. d. Under no circumstances

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When the auditor issues an erroneous opinion as a consequence of an underlying failure to comply with the requirements of generally accepted auditing standards, it results to a. Business failure. b. Audit failure. c. Audit risk. d. All of them

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