From the options given below which of the following is not the reason of inherent limitation of audit? a. Limitation in accounting system O b. Use of human judgment O c. Poor planning O d. Human errors
Q: ltimate purpose of assessing control risk is to contribute to the auditor’s evaluation of the: a.…
A: Control Risk: It is also known as internal control risk; this risk arises due to the inefficiency…
Q: Which of the following case, an audit opinion with unqualified Report with Modified Wording will be…
A: Sometimes a company can receive unqualified report, but it is unlike the other unqualified report as…
Q: Which of the following is not true a. Inherent risk and control risk are assessed by the auditor…
A: The question is multiple choice question Required Choose the Correct Option.
Q: b. A reply from a receivable confirmation letter received from the customer through the client is…
A: Confirmation letters are part of audit procedure and are sent to outside parties to confirm certain…
Q: the auditor to doubt the reliability of one or more written representations? I. One or more written…
A: Written representation are obtained as a direct written response from the management, only to…
Q: Audit standards distinguish auditors’ responsibility for planning procedures for detecting…
A: Auditors have duty to distinguishing material error of budget summaries because of resistance with…
Q: The auditor must obtain which audit evidence to draw reasonable conclusion a. Appropriate audit…
A: Option D is the correct answer i.e Sufficient and appropriate audit evidence.
Q: If the auditor performing an integrated audit identifies one or more material weaknesses in a…
A: Material weakness is defined as a deficiency or the combination of deficiencies in the company…
Q: Correction of an error in principle affects comparability and an explanatory paragraph after the…
A: The auditor should disclose a material lack of consistent application of GAAP by adding an…
Q: Other changes may affect comparability but not consistency in the use of accounting principles and…
A: The question is related to Auditing. Accounting Principles are specific guidelines and principles…
Q: The SEC notes, with respect to materiality, that Group of answer choices Professional judgment…
A: The auditor is responsible for forming an opinion on the financial statement audited. The auditor…
Q: Which of the following is least likely to be a factor that might indicate to an auditor that an…
A: special considerations are used by auditors where there is a high risk of material misstatements in…
Q: The objective of the auditor is to plan the audit so that it will be performed in an effective…
A: Audit is a sort of examination which is conducted to check the accuracy of the statements of an…
Q: From the options given below identify type of risk in case auditor unable to provide appropriate…
A: Auditor is the person who is responsible for verifying authenticity of the financial statements…
Q: Which of the following characteristics is not considered essential to audit evidence? a.…
A: SOLUTION- CHARACTERISTICS NOT CONSIDERED AS AN ESSENTIAL OR NECESSARY TO AUDIT EVIDENCE- THE…
Q: If an analytical procedure performed, identify fluctuations or relationships that are inconsistent…
A: If an analytical procedure performed, identify fluctuations or relationships that are inconsistent…
Q: Auditors are not responsible to detect all errors in the financial statements. Discuss the concepts…
A: Professional skepticism is recognizing the possibility that a material misstatement due to fraud…
Q: concept of reliability
A: Which of the following situations violates the concept of reliability? Correct Answer is :- 1,2 and…
Q: Which of the following characteristics is not considered essential to good audit evidence? a.…
A: The audit is a process of examining the financial statements of the business , other records and…
Q: Incorporating elements of unpredictability in the selection of audit procedures to be performed by…
A: Audit Procedures: The particular and specific procedures undertaken by auditors to procure evidence…
Q: When evaluating whether accounting estimates made by management are reasonable, auditors would be…
A: Definition: Auditing: Auditing is the process by which assertions made by management about financial…
Q: When the auditor identifies that a key control absent he/she would most probably: Select one: a.…
A: d. Issue a qualified or disclaimer of opinion on internal controls over financial reporting.…
Q: The risk that the auditors’ own testing procedures will lead to the decision that…
A:
Q: In a financial statement audit, inherent risk represents a. The risk that misstatements could occur…
A: In financial and managerial accounting, Inherent risk is that the risk expose by a slip-up or…
Q: Generally, audit evidence cannot be obtained entirely through substantive procedures True or…
A: Substantive procedures are the method or audit tests designed by an auditor to evaluate the…
Q: With respect to fraudulent financial reporting, which one of the following statements is not…
A: Auditor can obtain reasonable assurance only, not an absolute assurance.
Q: ment of materiality guides audit planning and testing materiality is used to guide the validity…
A: To find the incorrect option as,
Q: In which of the following cases should an Unqualified Report with Explanatory Paragraph be issued?…
A: Auditing means the independent checking of company operation by outsider. Auditor is qualified and…
Q: {Auditing} 42. Identify an alternative which is not a material misstatement from the following and…
A: Auditing The purpose of conducting the auditing is to identify the errors and omission which are…
Q: Which of the following factors are to be considered by the auditor to express a modified audit…
A: Auditor's opinion is based on the review of the financial statements of a company. An auditor's…
Q: Which of the following characteristics is not a measure of the appropriateness of audit evidence?…
A: Relevance and reliability are the two most important characteristics of audit evidence.
Q: Which of the following statements concerning audit evidence is true?(1) To be appropriate, audit…
A: The auditor should form a reasonable opinion based on the appropriate and sufficient audit evidence.…
Q: The auditor faces a risk that the examination will not detect material misstatements in the…
A: Introduction: An auditor verifies the accuracy of videoed commercial transactions. Auditors must…
Q: Which of the following statements is associated with analytical procedure test? a. It helps to…
A: Analytical procedures involve comparisons of recorded amounts, or ratios developed from recorded…
Q: Which one of the following statements is most appropriate to Control risk? Susceptibility of account…
A: Auditing means the independent checking of company operation by outsider. Auditor is qualified and…
Q: 8. In which of the following situations would an auditor originally choose between expressing a…
A: Qualified opinion: A qualified opinion can be issued by the auditor in the following two cases:…
Q: The likelihood that material misstatements may have entered the accounting system and notbeen…
A:
Q: The auditor faces a risk that the audit will not detect material misstatements that occur in the…
A: Introduction:- The main objective of auditor is to acquire sufficient appropriate audit evidence…
Q: Audit evidence obtained through inquiry of management about proper segregation of custodianship and…
A: Solution Reliability of audit evidence The reliability of audit evidence shall be considered based…
Q: In deciding upon the acceptable risk of incorrect acceptance for an account, an auditor considers…
A: Auditing is the procedure of finding the errors and misstatements presented in the financial…
Q: {Auditing} 15. Find the nature of materiality if the client incorrectly selects and applies…
A: The nature of materiality refers to the fact that the information included in the financial…
Q: inappropriate during the risk assessment procedure of the audit engagement?
A: First option is wrong because the oral inquiries will help the auditor to procure information…
Q: Which of the following is false? a. GAAP and IFRS have the same absolute standard regarding the…
A: International Financial Reporting Standard (IFRS): An international standard for identifying,…
Q: Negative Assurance in Review Reports. One portion of the report on a review services engagement is…
A:
Q: In the auditor's judgement, management's use of going concerm basis of accounting is appropriate,…
A: As per standards on auditing , If the adequate disclosure is not made in the financial statement…
Q: When planning to perform an audit, an accountant must have a clear understanding of audit risk and…
A: Audit risk refers to those risks which the auditor states while there in is an inappropriate opinion…
Q: Which of the following is correct about audit opinion? a. It does not assure the future viability of…
A: Correct option is A It does not assure the future viability of the entity Explanation The auditor's…
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- which of the following regarding errors is correct Select one: a. it is easier for the auditor to detect because it is not intentional b. misappropriation of assets is an kind of errors c. it is more difficult for the auditor to detect because it is not intentional d. intentional misstatement of the financial statements,: A. Explain Differences between Accountancy and Auditing B. Talk about the Disadvantages of the Occasional AuditWhat is risk of incorrect acceptance? A. The risk that the auditor concludes that a material misstatement exists when it does not exist. B. The risk that the auditor concludes that a material misstatement does not exist when it actually does not. C. The risk that the auditor concludes that a material misstatement does not exist when it does exist. D. The risk that the auditor concludes that a material misstatement exists when it actually does.
- Which of the following characteristics is not considered essential to good audit evidence? a. Excessive audit evidence b. Sufficiency of evidence c. Relevance of evidence d. Reliability of evidenceWhich of the following is not a function or benefit of a checklist? Providing evidence of audit planning Reducing workload for the auditee Reducing risk of auditor bias Maintaining the audit pace and continuityIn deciding upon the acceptable risk of incorrect acceptance for an account, an auditor considers each of the following except a. Audit risk. b.Tolerable error. c.The risk that internal controls fail to detect material misstatements that have occurred. d. The risk that analytical procedures and other tests fail to detect material errors that occur and that are not detected by internal control.
- S1. Operational risk, as opposed to efficiency, is the risk of loss resulting from inadequate internal processes, people, and systems or from external events. S2. FS audit is concerned on to see that the credit control has been strictly followed while operational audit is concerned on to study the credit control system for suggesting better measures as necessary. Which of the following statements is/are false?Assuming that the data collected in the accounting information system is free from material errors but the processing of such data is inappropriate, would it still be possible to generate correct accounting information under these circumstances? If yes, how? If no, why?Why is the audit team more concerned with controlling the exposure to the risk of overreliancethan with the risk of underreliance?a. Only the risk of overreliance results in an incorrect audit decision.b. The risk of underreliance is not related to the audit team’s study and evaluation of internalcontrol.c. The risk of overreliance can ultimately result in the audit team’s failing to reduce auditrisk to acceptable levels.d. The risk of underreliance can be controlled by performing tests of controls during theinterim period.
- From the options given below identify type of risk in case auditor unable to provide appropriate audit opinion. a. Audit risk O b. None of the options O c. Control risk O d. Inherent limitationWhich of the following characteristics is not considered essential to audit evidence? a. Availability of evidence b. Reliability of evidence c. Sufficiency of evidence d. Relevance of evidencethe susceptibility of an account balance or class of transactions to misstatements that could be material, individually or when aggregated with misstatements in other balances or classes, assuming that there were no related internal control is called : Select one: a. control risk b. audit risk c. detection risk d. inherent risk