What is the auditor's responsibility if they find evidence that might be fraud when conducting an...
What is the auditor's responsibility if they find evidence that might be fraud when conducting an audit?
Homework Answers
The auditor must obtain reasonable assurance that the financial statements are free from material misstatements.
However auditor is not responsible for detection of all fraud. In order to have any detection responsibility on the auditor, the fraud must misstate the financial statements and the misstatement must be material.
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What is the auditor's responsibility if they find evidence that
might be fraud when conducting an...
Describe an auditor's responsibility for detecting fraud.
Describe an auditor's responsibility for detecting fraud.
c.Which of the following statements reflects an auditor's responsibility for detecting fraud? O 2. An auditor...
c.Which of the following statements reflects an auditor's responsibility for detecting fraud? O 2. An auditor should plan the audit to detect fraud caused by departures from GAAP O 3. An auditor is not responsible for detecting fraud unless the application of audting standards would resuit in such detection O 4. An auditor should design the audit to provide reasonable assurance of delecting errors and fraud that are material to the financial staloments
What is an auditor's responsibility for supplementary information that is outside the basic financial statements but...
What is an auditor's responsibility for supplementary information that is outside the basic financial statements but required by the FASB? Group of answer choices The auditor has no responsibility for required supplementary information as long as it is outside the basic financial statements. The auditor's only responsibility for required supplementary information is to determine that such information has not been omitted. The auditor should apply certain limited procedures to the required supplementary information and add an other-matter paragraph to the...
When conducting an audit, the auditor has a responsibility to design audit tests to address the...
When conducting an audit, the auditor has a responsibility to design audit tests to address the risk of management override of internal controls. _____________ can be discerned by looking for evidence of concealment such as missing documents, altered documents, nonreconcilable items, misinformation obtained during management inquiries, and other indicators of concealment. A. Errors B. Scope 5 of 10 C. Intent D. Red flags
1. _ _is (are) responsible for the financial statements. 2. The auditor's report is the of...
1. _ _is (are) responsible for the financial statements. 2. The auditor's report is the of an audit. An opinion includes an introduction, management's and the auditor's responsibility, and a(n) 4. An opinion indicates that the financial statements are presented An audit report indicates that the audit evidence we have obtained is provide a basis for the opinion. to
R14-3 Discuss the auditor's responsibility for detecting subsequent events prior to the completion of field work....
R14-3 Discuss the auditor's responsibility for detecting subsequent events prior to the completion of field work. LO2 R14-4 Explain the process of "engagement wrap-up?" Why is it important? LO3 R14-5 Provide an example of why an auditor would reevaluate control risk near the end of the audit. Provide a different example of why an auditor would reevaluate fraud risk near the end of the audit. LO3 R14-6 Discuss actions an auditor would take when misstatements identified during the audit are...
Professional auditing standards provide guidance on the auditor's consideration of an entity's business risks. What is...
Professional auditing standards provide guidance on the auditor's consideration of an entity's business risks. What is the auditor's objective for understanding an entity's business risks? Why does an auditor not have responsibility to identify or assess all business risks? Provide some examples of business risks associated with an entity that an auditor should consider when performing an audit.
questions 1-3. Question (1): When a fraud has occurred within the organization, management must decide what...
questions 1-3.
Question (1): When a fraud has occurred within the organization, management must decide what follow up action to take. (a) What are three action alternatives available to organizations? (b) Sometimes when this occurred, why might management decide to avoid taking legal action against fraud perpetrators? What are the perceived benefits of inaction? What are the costs? Question (2): For each of the following, identify whether the evidence would be classified as testimonial exidence documentary evidence, physical evidence, or...
32. Why might the fraud theory used in court differ from the fraud theory developed and...
32. Why might the fraud theory used in court differ from the fraud theory developed and used by the fraud investigator? 33. Why is a fraud theory an essential part of a fraud investigation? 34. What are the primary sources of evidence in a fraud investigation? 35. Is a verbal confession by a suspect part of the evidence of a fraud case? Explain. 36. At what point in the investigation process is it important to develop a fraud theory?
It is the responsibility of management to apply accounting standards when communicating with investors and creditors...
It is the responsibility of management to apply accounting standards when communicating with investors and creditors through financial statements. Another group, auditors, serves as an independent intermediary to help ensure that management has in fact appropriately applied GAAP in preparing the company's financial statements. Auditors examine (audit) financial statements to express a professional, independent opinion. The opinion reflects the auditors' assessment of the statements' fairness, which is determined by the extent to which they are prepared in compliance with GAAP....
c.Which of the following statements reflects an auditor's responsibility for detecting fraud? O 2. An auditor should plan the audit to detect fraud caused by departures from GAAP O 3. An auditor is not responsible for detecting fraud unless the application of audting standards would resuit in such detection O 4. An auditor should design the audit to provide reasonable assurance of delecting errors and fraud that are material to the financial staloments
1. _ _is (are) responsible for the financial statements. 2. The auditor's report is the of an audit. An opinion includes an introduction, management's and the auditor's responsibility, and a(n) 4. An opinion indicates that the financial statements are presented An audit report indicates that the audit evidence we have obtained is provide a basis for the opinion. to
R14-3 Discuss the auditor's responsibility for detecting subsequent events prior to the completion of field work. LO2 R14-4 Explain the process of "engagement wrap-up?" Why is it important? LO3 R14-5 Provide an example of why an auditor would reevaluate control risk near the end of the audit. Provide a different example of why an auditor would reevaluate fraud risk near the end of the audit. LO3 R14-6 Discuss actions an auditor would take when misstatements identified during the audit are...
Professional auditing standards provide guidance on the auditor's consideration of an entity's business risks. What is the auditor's objective for understanding an entity's business risks? Why does an auditor not have responsibility to identify or assess all business risks? Provide some examples of business risks associated with an entity that an auditor should consider when performing an audit.
questions 1-3.
Question (1): When a fraud has occurred within the organization, management must decide what follow up action to take. (a) What are three action alternatives available to organizations? (b) Sometimes when this occurred, why might management decide to avoid taking legal action against fraud perpetrators? What are the perceived benefits of inaction? What are the costs? Question (2): For each of the following, identify whether the evidence would be classified as testimonial exidence documentary evidence, physical evidence, or...
32. Why might the fraud theory used in court differ from the fraud theory developed and used by the fraud investigator? 33. Why is a fraud theory an essential part of a fraud investigation? 34. What are the primary sources of evidence in a fraud investigation? 35. Is a verbal confession by a suspect part of the evidence of a fraud case? Explain. 36. At what point in the investigation process is it important to develop a fraud theory?
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