Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 4, Problem 25P
To determine
Prepare memo to explain the reporting responsibilities of an independent auditor.
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Students have asked these similar questions
Question 6
Which ONE of the following best describes professional scepticism? An auditor
should:
A After obtaining an explanation from a client always confirm this with another
member of staff
B Not believe anything that management tells him/her, without speaking to a third
party
C Apply a questioning mind to the information and evidence he/she obtains
D Always consider the worst outcome
H
111
Question 9
To test the reasonableness of the turnaround time of the applicable business process review, what tool can be used by the internal auditor?
Group of answer choices
Forcefield analysis
Control sheets
Check sheets
Time and motion study
quick plz
You are a trainee accountant in an audit firm. A more senior trainee has been on sick leave, and you are due to go on study leave. You have been told by your manager that, before you go on leave, you must complete some complicated work.
The deadline is very near. You feel that you are not experienced to complete the work alone.
You would need additional help to complete it to the required standard, and your manager appears unable to offer the necessary support. If you try to complete the work within the proposed deadline but with lower quality, you could face problems later
You feel slightly intimidated by your manager, and also feel pressure to do the work.
Which of the below fundamental principles of professional ethics is affected -
a. The reputation of the audit firm may be affected if you try to perform the work and will be against professional behavior.
b. You should consider how best to raise the matter with an expert person from your professional body (ACCA). This…
Chapter 4 Solutions
Survey Of Accounting
Ch. 4 - Prob. 1QCh. 4 - Prob. 2QCh. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - Prob. 5QCh. 4 - Prob. 6QCh. 4 - What is meant by separation of duties? Give an...Ch. 4 - 9. What are the attributes of a high-quality...Ch. 4 - 10. What is a fidelity bond? Explain its purpose.Ch. 4 - Prob. 10Q
Ch. 4 - Prob. 11QCh. 4 - Prob. 12QCh. 4 - Prob. 13QCh. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - Prob. 16QCh. 4 - Prob. 17QCh. 4 - Prob. 18QCh. 4 - Prob. 19QCh. 4 - Prob. 20QCh. 4 - Prob. 21QCh. 4 - Prob. 22QCh. 4 - Prob. 23QCh. 4 - Prob. 24QCh. 4 - Prob. 25QCh. 4 - Prob. 26QCh. 4 - Prob. 27QCh. 4 - Prob. 28QCh. 4 - Prob. 29QCh. 4 - Prob. 30QCh. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Fraud triangle Sam Sharp is an accountant with a...Ch. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 1ATCCh. 4 - Prob. 3ATCCh. 4 - Prob. 4ATCCh. 4 - ATC 6-7 Ethical Dilemma I need just a little extra...
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- ZYNGA (LO Z 3, 4, 5, 6, 8) Refer to the Why It Matters feature “How to Account for Virtual Sales at Zynga.” a. What are the inherent risks associated with the revenue transactions at Zynga? b. What are management’s incentives to fraudulently misstate revenue transactions? c. What controls should Zynga management have in place to mitigate the risks associated with revenue transactions? d. How might auditors use planning analytical procedures to identify any potential concerns with Zynga’s revenue? e. What might be considered sufficient appropriate evidence when auditing Zynga’s revenue transactions?arrow_forwardInstruction: Briefly answer the following questions: 4-5 SENTENCES ONLY EVERY question 1 .An important element of the control environment is the organization’s commitment to ethics and integrity. How might an internal auditor assess the organization’s commitment to ethics and integrity? 2. How might management and internal auditors assess each one of the following? The independence and competence of the board of directors The competence of accounting personnel Whether company employees are adhering to the company’s code of conduct 3.What is monitoring? Identify the two major types of monitoring and explain how they could be used by management. I.Ongoing Evaluation II.Separate Evaluations PLEASE NO PLAGIARISM. I WILL GIVE UPVOTES AND COMMENTS. THANKS!arrow_forwardAccounting please answer question 9 accounting information. 9 Explain how the effectiveness of general control affects the auditor's test of automated application controls, including auditor's ability to rely on tests done in prior audit. 10, Explain the effects of a general controls on system-wide applications. 11. Explain ways in which auditor's obtain an understanding of client's general control. Objective 5arrow_forward
- Question 9 In making a decision of whether to take on a new audit client, the auditor should perform all of the following except: 1. Reviewing the credit rating of the proposed client. 2. Performing preliminary tests of internal controls. 3. Evaluating the firm's ability to service the client properly. 4. Inquiring of third parties as to the reputation of the proposed client. 3 O 1 O 2 O 4arrow_forwardQuestion 34 A transaction level internal control activity is best described as: An action taken by auditors to obtain evidence An action taken by company (client) personnel for the purpose of preventing, detecting and correcting errors and frauds in transactions. A method for recording, summarizing and reporting financial information. none of the answers provided are correctarrow_forward{Auditing} 7. Assume, Mr. Anwar is appointed as an auditor in Al-Noor Company. He intends to understand the mind set of managers and owners in the company. From the following options choose the evaluation tool which may assist auditor to understand the managers and owners: a. Test Control b. Interview employees c. Observe process d. None of the optionsarrow_forward
- Question 8 Rule 201, General Standards, requires a member to comply with standards and interpretations. Which of the following is NOT a standard covered by Rule 201. Sufficient relevant data Due Professional Care Independence Planning & Supervision. 9 ) Which of the following situations would most likely be in conflict with the responsibilities principle? Auditors document their assessment of control risk following their study of internal control. Auditors perform the engagement with the performance level expected of competent auditors. Auditors obtain expertise in their client's industry as they are conducting the audit examination. Auditors are directly involved with a client manager in a strategic decision-making capacity.arrow_forwardQuestion 32 An audit team's responsibility would not include: Documentation of understanding of a client's internal controls. Communicating internal control deficiencies to management. Designing client's internal controls. Assessing the effectivenesses of a client's internal controls.arrow_forwardQuestion 1 In order for public to have confidence in work perform by professional accountants it is essential to have a system regulation. Regulation can take the form of both ethical and statutory guidance. Required; a) State the five threats contained within IESBA's Code of Ethics for professional Accountants and for each threat list one example of circumstance that might create the threat. b) Explain the Auditor's ethical responsibilities with regards to client confidentiality and when they have obligatory responsibility to disclose client information on a voluntary responsibility to disclose client information. Compliance with the fundamental principles in IESBA's Code of ethics for Professional Accountants can be threatened in a number of ways. Required; c) Explain each of the five fundamental principles of IESBA's Code of Ethics for Professional Accountants. d) List the five ethical threat to independence and objectivity and for each threat identify one example of a circumstance…arrow_forward
- 45 When considering the effectiveness of internal control, the auditor should recognize that inherent limitations do exist. Which of the following is an example of inherent limitations in a client's internal control? Group of answer choices Procedures are designed to assure the execution and recording of transactions in accordance with management's authorization. In the performance of most control procedures, there are possibilities of errors arising from mistakes in judgment. The effectiveness of procedures depends on the segregation of employee duties. Procedures for handling large numbers of transactions are processed by electronic data processing equipment.arrow_forwardDiscussion Questions on Fraud Prevention from Chapter 4 Fraud Examination 4th Edition 1. How do organizations create a culture of honesty, openness, and assistance? 2. What are different ways in which companies can eliminate opportunities for fraud? 3. What is the purpose of adopting a code of ethics throughout a company?arrow_forwardInternal control in a small business requires an outside CPA to audit the company books. Group of answer choices True Falsearrow_forward
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