Explain the primary function of the independent external auditor. List the independent auditor’s assertions included in their...
Explain the primary function of the independent external auditor. List the independent auditor’s assertions included in their “clean” or unqualified auditor’s report.
Homework Answers
The external auditor is required by law to examine and publicly issue an opinion on the reliability of corporate financial reports.
The primary function of independent external auditor:
The primary function of independent external auditor to express an opinion on financial statement that those are free from mistake.
Auditor provide three opinion:
1 Qualified opinion
2. Unqualified opinion ( clean opinion)
3. Adverse opinion
Assertion provide by auditor
This best type of report that business received
UnQualified opinion = that is also know as clean opinion , an UnQualified opinion by auditor in there report is issued when financial statement provide all true information and free from any misrepresentation.
The auditor sign that report with date documents and including address
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Explain the primary function of the independent external
auditor. List the independent auditor’s assertions
included in their...
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1. Which of the following are the established criteria against which management's assertions are judged in an audit? a- Generally Accepted Accounting Principles - Generally Accepted Auditing Standards C- Consistently Reported Accounting Procedures d- Fairness in application of accounting principles 2. Which of the following criteria is unique to the auditors assurance function? a. General competence b- Familiarity with the particular industry of which the client is part C- Due professional care d- Independence 3. Independent auditing can best be...
The primary responsibility of an independent auditor who is a professional accountant is to: 1. Prepare...
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1. The term confirmation in auditing referrers to a)The notation in the auditor’s work papers that...
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For each of the following independent situations, assume that any amounts would be material. ...
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Each statement describes a responsibility of an auditor. Select from the option list provided the type...
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1.Which of the following is not one of the steps the auditor must perform to assess...
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1. A CPA has accepted an engagement in which inquiry and analytical procedures are the primary...
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Question 2 You are the auditor of Green Machine Ltd, a manufacturer. You have obtained a...
Question 2 You are the auditor of Green Machine Ltd, a manufacturer. You have obtained a summary of the property, plant and equipment for the year ended 30 June 2018, which identifies cost and accumulated depreciation brought forward, additions and disposals in the year and depreciation charges. A review of the management letter from the previous year’s audit shows that there were some problems in relation to making a distinction between capital and revenue expenditure; some items were capitalized when...
Question 2 You are the auditor of Green Machine Ltd, a manufacturer. You have obtained a...
Question 2 You are the auditor of Green Machine Ltd, a manufacturer. You have obtained a summary of the property, plant and equipment for the year ended 30 June 2018, which identifies cost and accumulated depreciation brought forward, additions and disposals in the year and depreciation charges. A review of the management letter from the previous year’s audit shows that there were some problems in relation to making a distinction between capital and revenue expenditure; some items were capitalized when...
Question 2 You are the auditor of Green Machine Ltd, a manufacturer. You have obtained a...
Question 2 You are the auditor of Green Machine Ltd, a manufacturer. You have obtained a summary of the property, plant and equipment for the year ended 30 June 2018, which identifies cost and accumulated depreciation brought forward, additions and disposals in the year and depreciation charges. A review of the management letter from the previous year’s audit shows that there were some problems in relation to making a distinction between capital and revenue expenditure; some items were capitalized when...
1. Which of the following are the established criteria against which management's assertions are judged in an audit? a- Generally Accepted Accounting Principles - Generally Accepted Auditing Standards C- Consistently Reported Accounting Procedures d- Fairness in application of accounting principles 2. Which of the following criteria is unique to the auditors assurance function? a. General competence b- Familiarity with the particular industry of which the client is part C- Due professional care d- Independence 3. Independent auditing can best be...
Each statement describes a responsibility of an auditor. Select from the option list provided the type of responsibility each imposes on the auditor. Each choice may be used once, more than once, or not at all. Statement Type of responsibility 1. The auditor should document the evidence obtained in the audit. 2. The auditor must be independent. 3. The auditor should test management's assertions relating to the financial statements. 4. The auditor may make suggestions about the form or content...
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