Which of the following statements are factors to consider whether the firm has the capabilities, competence, time and resources to undertake a new audit engagement from a prospective client: I. Firm personnel have knowledge of relevant industries. II. The firm has sufficient personnel with the necessary capabilities and competence. III. Experts are available, if needed. IV. The firm is able to complete the engagement within the reporting deadline. a. I and II only b. II and IV only. c. II, III and IV only d. I, II, III and IV

Question

Which of the following statements are factors to consider whether the firm has the capabilities, competence, time and resources to undertake a new audit engagement from a prospective client: I. Firm personnel have knowledge of relevant industries. II. The firm has sufficient personnel with the necessary capabilities and competence. III. Experts are available, if needed. IV. The firm is able to complete the engagement within the reporting deadline. a. I and II only b. II and IV only. c. II, III and IV only d. I, II, III and IV

Which of the following statements are
factors to consider whether the firm has the
capabilities, competence, time and
resources to undertake a new audit
engagement from a prospective client:
I. Firm personnel have knowledge of
relevant industries.
II. The firm has sufficient personnel with
the necessary capabilities and
competence.
III. Experts are available, if needed.
IV. The firm is able to complete the
engagement within the reporting
deadline.
a. I and II only
b. II and IV only.
c. II, III and IV only
d. I, II, III and IV

asked Nov 4, 2021 by shubhhw

1 Answer

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Last Answer : Auditor

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Last Answer : All of the answers

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

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Last Answer : A continuing awareness and an understanding of relevant technical professional and business developments.

PSA 315 requires that the auditor should obtain an understanding' of relevant industry, regulatory and other external factors including the applicable financial reporting framework. Which of the following is not an example of matters relating to regulatory environment that the auditor would usually consider? a. Regulatory framework for a regulated industry. b. Product technology relating to the entity's product. c. Legislation and regulation significantly affecting the entity's operationd. Taxation

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Last Answer : Product technology relating to the entity's product

When management refuses to disclose in the financial statements noncompliance to laws and regulations which are identified by the independent auditor, the CPA may be charged with unethical conduct for a. Withdrawing from the engagement. b. Issuing a disclaimer of opinionc. Failure to uncover the noncompliance to laws and regulations during the prior audits. d. Reporting these activities to the audit committee..

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Last Answer : Issuing a disclaimer of opinion

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Last Answer : There is a greater risk that misstatements will not be detected in an audit than in a review.

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Last Answer : The client's bank required an audit before committing to a loan, but the client subsequently acquired alternative financing.

Prior to beginning fieldwork on a new audit engagement in which a CPA does not possess industry expertise, the CPA should a. Obtain knowledge of matters that relate to the nature of the entity's business and industry. b. Reduce audit risk by lowering the preliminary levels of materiality. c. Engage financial experts who are familiar with the nature of the industry. d. Design special substantive tests to compensate for the lack of industry expertise.

Description : Prior to beginning fieldwork on a new audit engagement in which a CPA does not possess industry expertise, the CPA should a. Obtain knowledge of matters that relate to the nature of the ... of the industry. d. Design special substantive tests to compensate for the lack of industry expertise.

Last Answer : Obtain knowledge of matters that relate to the nature of the entity's business and industry

A CPA is conducting the first audit of a client’s financial statements. The CPA hopes to reduce the audit work by consulting with the predecessor auditor and reviewing the predecessor's working papers. This procedure is a. Acceptable if the CPA refers in the audit report to reliance upon the predecessor auditor's work. b. Required if the CPA is to render an unqualified opinion. c. Unacceptable because the CPA should bring an independent viewpoint to a new engagement. d. Acceptable if the client and the predecessor auditor agree to it.

Description : A CPA is conducting the first audit of a client's financial statements. The CPA hopes to reduce the audit work by consulting with the predecessor auditor and reviewing the predecessor's working papers. ... to a new engagement. d. Acceptable if the client and the predecessor auditor agree to it.

Last Answer : Acceptable if the client and the predecessor auditor agree to it.

An engagement to perform agreed-upon procedures may involve the auditor in performing certain procedures concerning I. Individual items of financial data. II. A single financial statement. III. A complete set of financial statements. a. I and II only b. II and III only c. I and III only d. I, II, and III

Description : An engagement to perform agreed-upon procedures may involve the auditor in performing certain procedures concerning I. Individual items of financial data. II. A single financial statement. III. A complete set of financial statements. ... only b. II and III only c. I and III only d. I, II, and III

Last Answer : I, II, and III

Competence as a certified public accountant includes all of the following except a. Consulting others if additional technical information is needed. b. Possessing the ability to supervise and evaluate the quality of staff work. c. Having the technical qualifications to perform an engagement. d. Warranting the infallibility of the work performed

Description : Competence as a certified public accountant includes all of the following except a. Consulting others if additional technical information is needed. b. Possessing the ability to supervise and ... technical qualifications to perform an engagement. d. Warranting the infallibility of the work performed

Last Answer : Warranting the infallibility of the work performed

An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should a. Engage financial experts familiar with the nature of the business entity. b. Obtain a knowledge of matters that relates to the nature of the entity's business. c. Refer a substantial portion of the audit to another CPA who will act as the principal auditor. d. First inform management that an unqualified opinion cannot be issued

Description : An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should a. Engage financial experts familiar with the nature of the business entity. ... as the principal auditor. d. First inform management that an unqualified opinion cannot be issued

Last Answer : Obtain a knowledge of matters that relates to the nature of the entity's business.

shubhhw · Answer 1 · 2021-11-04T15:24:16+0000

Answer :

I, II, III and IV

answered Nov 4, 2021 by shubhhw

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