Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN: 9781305080577
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: South-Western College Pub
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Chapter 14, Problem 33MCQ
To determine
Introduction: Auditing is referred to as the verification activity of the financial statements of a company which is made by the auditor. For the purpose of auditing, the company can appoint an external or an internal auditor.
To choose: The correct option among the given options.
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In the auditing process
Select one:
a.
the criteria for evaluating information will not vary depending on the information being audited.
b. the audit report communicates the auditor's findings to users.
c. the types and amounts of evidence remain constant from audit to audit
d.
evidence are gathered by the auditor to determine whether the audited information is stated in accordance with SEC standards.
Describe the financial statement's aims and purposes, and explain how the auditor intends to verify them via his audit plan for the financial statements (You can assume necessary details).
Explain how a financial statement disclosure checklist aids the auditor in determining whether there is adequate relevant evidence for each of the presentation and disclosure goals.
Chapter 14 Solutions
Auditing: A Risk Based-Approach to Conducting a Quality Audit
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Describe the purpose of a financial statement disclosure checklistand explain how it helps the auditor determine if there is sufficient appropriate evidencefor each of the presentation and disclosure objectives.arrow_forwardThe auditor's report contains a number of important disclosures, and it's important to know what such disclosures mean.arrow_forwardExplain the concept of “Reasonable Assurance” in the context of financial statement audit.arrow_forward
- The auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of auditing procedures and in evaluating the results of those procedures. Required: a. Define audit risk. b. Describe the components of audit risk (e.g., inherent risk, control risk, and detection risk). c. Explain how these components are interrelated. (AICPA, adapted)arrow_forwardList the functions needs to be done on the part of auditor to verify contingent liabilities of an company during the process of the audit?arrow_forwardUnder preconditions of an audit, the management shall provide the auditor with the following, except: Group of answer choices b. Additional information that the auditor may request from management for the purpose of the audit d. All the above are concerns that management need to provide c. Unrestricted access to persons within the entity from whom the auditor determines it necessary to obtain audit evidence. a. Access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;arrow_forward
- The auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of auditing procedures and in evaluating the results of those procedures. Required: a. Define audit risk b. Describe the components of audit risk (e.g., inherent risk, control risk, and detection risk). c. Explain how these components are interrelatedarrow_forwardAudit documentation is the written record of the basis for the auditor's conclusions that provides the support for the auditor's representations, whether those representations are contained in the auditor's report. Required: b. Discuss TWO (2) important factors that affect the form of audit documentation.arrow_forward
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