Homework Answers
- Independence in fact is that auditor should be able to take decisions as to performing audit procedures without any influences, No person should be able to influence the extent of audit. Whereas independence in appearence is that, there should not be any transactions such that the well informed investors of the company would conclude the auditor is not independent and the relationship is risky.
- It is very important for an auditor to be independent because, the information provided by the auditor is relied upon by many persons who are going to enter into transactions with the company and misleading conclusions drawn by the auditor would result in heavy losses to people who depended on the audit report, therefore the auditor should be highly independent.
- I don't think gray can remain independent by accepting the proposal, gray should examine the risk of accepting the proposal. Mere attractive pay is not a final thing to be considered for accepting a change in the engagement.
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Chapter 7 Accounting Information Systems ETH CH BTN 7-3 Erica Gray, CPA, is a sole practitioner....
Chapter Discussion Question Erica Gray, CPA, is a sole practitioner. She has auditor for 10 years...
can any one help me with this
Chapter Discussion Question Erica Gray, CPA, is a sole practitioner. She has auditor for 10 years. Recently a long-standing audit client asked design and implement an integrated computer-based accountin information system. The fees associated with this additional engagement with the client are very attractive. However, Gray wo she can remain objective on subsequent audits in her evaluation client's accounting system and its records if she was responsibl design and implementation. Gray knows that...
Independence. Generally accepted auditing standards require auditors to be independent. Included within this standard are the...
Independence. Generally accepted auditing standards require auditors to be independent. Included within this standard are the concepts of independence in fact and independence in appearance. a. Define independence in fact and independence in appearance. b. What two general types of relationships would normally compromise auditors' independence? c. For each of the following separate situations, discuss whether you believe the auditors' independence has been compromised. 1. The auditors' firm provides extensive consulting services to the client; these services provide revenues to...
1.An auditor's report includes the following paragraph. All other parts of the report remain unchanged: "We...
1.An auditor's report includes the following paragraph. All other parts of the report remain unchanged: "We draw attention to Footnote XX to the attached financial statements, which describes the adoption of recent standards issued by the Financial Accounting Standards Board and pertaining to the recognition of intangible accounts." This paragraph is most likely included in which type of opinion? a. Adverse opinion b. Unqualified opinion c. Disclaimer of opinion d. Qualified GAAP opinion 2. All CPA firms registered with the...
1. Which of the following are the established criteria against which management's assertions are judged in...
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...
.Providing bookkeeping services to an audit client 5-18 (Objectives 5-5, 5-6) Each of the following situations...
.Providing bookkeeping services to an audit client 5-18 (Objectives 5-5, 5-6) Each of the following situations involves a possible violation of the IESBA's Code of Ethics, For each situation, state the fundamental principle related the situation and whether it is a violation. a. Fadl Shaker is a CPA, but not a partner, with three years of professional experience with Shaker & Shaker, CPAS. He owns 25 shares of stock in an audit client of the firm, but he does not...
4-22 (OBJECTIVES 4-5,4-7) Each of the following situations involves a possible violation of the AICPA Code of Professional Conduct.
4-22 (OBJECTIVES 4-5,4-7) Each of the following situations involves a possible violation of the AICPA Code of Professional Conduct. For each situation, state the applicable rule of conduct and whether it is a violation.a. Emrich, CPA, provides tax services, management advisory services, and bookkeeping services and also conducts audits for the same nonpublic client. Because the firm is small, the same person often provides all the services.b. Steve Custer, CPA, set up a casualty and fire insurance agency to complement...
B) Multiple choices: 60 points: for each statement circle the best answer. 1) The three requirements...
B) Multiple choices: 60 points: for each statement circle the best answer. 1) The three requirements for becoming a CPA include all but which of the following A) Uniform CPA examination requirement B) Educational requirements C) Character requirements D) Experience requirement 2) The International Standards on Auditing (ISAs) A) are issued by the AICPA B) override a country's regulations governing the audit of a company C) has many of the same standards as the Auditing Standards Board (ASB) D) must...
1. Do you agree with Deloitte's assertion that Adams had no "substantive role" in the 2008...
1. Do you agree with Deloitte's assertion that Adams had no
"substantive role" in the 2008 and 2009 Caesars audits? Defend your
answer.
2. The SEC applies a principles-based approach to mitigating the
risks that may undercut auditor independence. Identify the four
guiding principles applied by the SEC to protect the independence
of auditors of public companies.
3. Assume Adams had used his personal funds to finance his
gaming activities in the Caesars casino. Under those circumstances,
would he have...
KID CASTLE EDUCATIONAL CORPORATION AND BROCK, SCHECHTER & POLAKOFF LLP, PCAOB 10 3, 4, 5, 7,...
KID CASTLE EDUCATIONAL CORPORATION AND BROCK, SCHECHTER & POLAKOFF LLP, PCAOB 10 3, 4, 5, 7, 8) PROFESSIONAL SKEPTICISM 7-58 General Background. On May 22, 2012, the audit firm of Brock Schechter & Polakoff LLP (hereafter BSP) was censured and fined 820,000 by the PCAOB in relation to its audits of public compa nies located in Taiwan and China. These public companies were listed on U.S. stock exchanges. James Waggoner, BSP's director of accounting and auditing, was the BSP auditor...
LO 10-6, 10 10-36 Based on an assessment of audit risk, the auditors are concerned with...
LO 10-6, 10 10-36 Based on an assessment of audit risk, the auditors are concerned with the following two risks: 1. The risk that that the client might be making duplicate payments to vendors. 2. The risk that the client's accounting clerk might be making unauthorized payments to himself. a. Assuming that the client has a manual accounting system, describe how the auditors can design a test to identify the duplicate payments and unauthorized payments. b. Assuming that the client...
can any one help me with this
Chapter Discussion Question Erica Gray, CPA, is a sole practitioner. She has auditor for 10 years. Recently a long-standing audit client asked design and implement an integrated computer-based accountin information system. The fees associated with this additional engagement with the client are very attractive. However, Gray wo she can remain objective on subsequent audits in her evaluation client's accounting system and its records if she was responsibl design and implementation. Gray knows that...
Independence. Generally accepted auditing standards require auditors to be independent. Included within this standard are the concepts of independence in fact and independence in appearance. a. Define independence in fact and independence in appearance. b. What two general types of relationships would normally compromise auditors' independence? c. For each of the following separate situations, discuss whether you believe the auditors' independence has been compromised. 1. The auditors' firm provides extensive consulting services to the client; these services provide revenues to...
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...
.Providing bookkeeping services to an audit client 5-18 (Objectives 5-5, 5-6) Each of the following situations involves a possible violation of the IESBA's Code of Ethics, For each situation, state the fundamental principle related the situation and whether it is a violation. a. Fadl Shaker is a CPA, but not a partner, with three years of professional experience with Shaker & Shaker, CPAS. He owns 25 shares of stock in an audit client of the firm, but he does not...
B) Multiple choices: 60 points: for each statement circle the best answer. 1) The three requirements for becoming a CPA include all but which of the following A) Uniform CPA examination requirement B) Educational requirements C) Character requirements D) Experience requirement 2) The International Standards on Auditing (ISAs) A) are issued by the AICPA B) override a country's regulations governing the audit of a company C) has many of the same standards as the Auditing Standards Board (ASB) D) must...
1. Do you agree with Deloitte's assertion that Adams had no
"substantive role" in the 2008 and 2009 Caesars audits? Defend your
answer.
2. The SEC applies a principles-based approach to mitigating the
risks that may undercut auditor independence. Identify the four
guiding principles applied by the SEC to protect the independence
of auditors of public companies.
3. Assume Adams had used his personal funds to finance his
gaming activities in the Caesars casino. Under those circumstances,
would he have...
KID CASTLE EDUCATIONAL CORPORATION AND BROCK, SCHECHTER & POLAKOFF LLP, PCAOB 10 3, 4, 5, 7, 8) PROFESSIONAL SKEPTICISM 7-58 General Background. On May 22, 2012, the audit firm of Brock Schechter & Polakoff LLP (hereafter BSP) was censured and fined 820,000 by the PCAOB in relation to its audits of public compa nies located in Taiwan and China. These public companies were listed on U.S. stock exchanges. James Waggoner, BSP's director of accounting and auditing, was the BSP auditor...
LO 10-6, 10 10-36 Based on an assessment of audit risk, the auditors are concerned with the following two risks: 1. The risk that that the client might be making duplicate payments to vendors. 2. The risk that the client's accounting clerk might be making unauthorized payments to himself. a. Assuming that the client has a manual accounting system, describe how the auditors can design a test to identify the duplicate payments and unauthorized payments. b. Assuming that the client...
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