Auditors begin their assessments of inherent risk during audit planning. Which of the following would not...
Auditors begin their assessments of inherent risk during audit planning. Which of the following would not help in assessing inherent risk during the planning phase?
A) obtaining knowledge about the client’s business and industry
B) identifying related parties
C) touring the client’s plant and offices
D) obtaining client’s agreement on the engagement on the engagement letter
Homework Answers
The following would not help in assessing inherent risk during the planning phase:-
D) obtaining the client’s agreement on the engagement on the engagement letter
Add Answer to:
Auditors begin their assessments of inherent risk during audit
planning. Which of the following would not...
Using the audit risk model, state the effect on control risk, inherent risk, acceptable audit risk,...
Using the audit risk model, state the effect on control risk, inherent risk, acceptable audit risk, and planned evidence for each of the following independent events. In each of the events cirlce one letter for each of the three independent variables and planned evidence: I=increase, D=decrease, N= no effect, and C= cannot determine from the information provided. A. The client's management materially decreased long-term contractual debt: Control risk IDNC Acceptable audit risk IDNC Inherent risk IDNC Planned evidence IDNC B....
It is always a good idea for auditors to begin an audit with a professional skepticism...
It is always a good idea for auditors to begin an audit with a professional skepticism characterized by the assumption that O a potential conflict of interest always exists between the auditor and the management of the enterprise under audit. O in audits of financial statements, the auditor acts exclusively in the capacity of an auditor O the professional status of the independent auditor imposes commensurate professional obligations. O financial statements and financial data are verifiable. When Auditee Company prohibits...
6. Which of the following statements is not correct? If (a) (b) (c) individual audit risk...
6. Which of the following statements is not correct? If (a) (b) (c) individual audit risk remains the same, detection risk has an inverse relationship to inherent risk and control risk. The auditor may make separate or combined assessments of inherent risk and control risk. Detection risk cannot be changed at the auditor's discretion The greater the inherent and control risks the auditor believes exist, the less detection risk that can be accepted. (d) 7. Inherent risk and control risk...
W&S Partners began the planning phase of the Cloud 9 audit. As part of the risk...
W&S Partners began the planning phase of the Cloud 9 audit.
As part of the risk assessment phase for the new audit, the audit
team needs to gain an understanding of Cloud 9’s structure and its
business environment, determine materiality, and assess inherent
risk. This will assist the team in developing an audit strategy and
designing the nature, extent, and timing of audit procedures.
Answer the following questions based on the additional information
about Cloud 9 presented in the appendix...
Review Garcia and Foster’s calculations of materiality thresholds for the 20X2 Audit . Determine if the...
Review Garcia and Foster’s calculations of materiality
thresholds for the 20X2 Audit . Determine if the auditors correctly
applied the materiality concept in their risk assessment
procedures. Describe any problems you find and provide suggestions
for improvement. This question relates to step 2 of the Garcia and
Foster Audit Plan.
Step 2: Requires the audit team to obtain and document its
understanding of the client’s environment including internal
controls. This understanding allows auditors to identify
significant risks in the audit...
These are more choices to choose from. John Josephs, an audit manager for Tip, Acanoe &...
These are more choices to
choose from.
John Josephs, an audit manager for Tip, Acanoe & Tylerto, was asked to speak at a dinner meeting of the local Small Business Administration Association. The president of the association has suggested that he talk about the various phases of the audit process to help small business owners better understand what auditors do. John has asked you, his trusted assistant, to prepare an outline for his speech. He suggests that you answer the...
1. One of the initial steps in the audit process is to obtain a _______ that...
1. One of the initial steps in the audit process is to obtain a _______ that is used as an agreement between a CPA firm and a client for the conduct of an audit and related services. a)10-Q filed with the SEC b)Assessment report c)Audit and risk report d)Engagement letter 2. An auditor must consider both acceptable audit risk and inherent risk when planning an audit. These two types of risk affect the: a)Amount of evidence that needs to be...
Auditors have a responsibility to remain alert to audit evidence that contradicts other audit evidence obtained. The app...
REMOVEDAuditors have a responsibility to remain alert to audit evidence that contradicts other audit evidence obtained. The application of professional skepticism is essential to the critical assessment and questioning of contradictory audit evidence. When the auditor obtains information during the course of the audit that contradicts information obtained from another source, the auditor has a responsibility to resolve the matter and consider its impact on the sufficiency and appropriateness of audit evidence obtained and the effect, if any, on other...
For #3,4 and 6 discuss the accounts they affect from the standpoint of inherent risk? Discuss...
For #3,4 and 6 discuss the accounts they affect from the
standpoint of inherent risk?
Discuss the level of acceptable audit risk(low,medium,high)
you determined for pinnacle and what factors led to your
decision?
1. Your firm has an employee who reads and saves articles about issues that may affect key dlients. You read an article in the file titled, "EPA Regulations Encouraging Solar- Powered Engines Postponed? After reading the articde, you realize that the regulations management is relying upon to...
Cloud 9 Ltd. Case Book Assignment 2.1 a (Essay) Planning materiality W&S Partners’ audit methodology dictates...
Cloud 9 Ltd. Case Book Assignment 2.1 a (Essay)
Planning materiality
W&S Partners’ audit methodology dictates that one planning
materiality (PM) amount is to be used for the financial statements
as a whole. Further, only one basis should be selected—a blended
approach or average should not be used. The basis selected is the
one determined to be the key driver of the business.
W&S Partners uses the following percentages as starting points
for the various bases. These starting points can...
It is always a good idea for auditors to begin an audit with a professional skepticism characterized by the assumption that O a potential conflict of interest always exists between the auditor and the management of the enterprise under audit. O in audits of financial statements, the auditor acts exclusively in the capacity of an auditor O the professional status of the independent auditor imposes commensurate professional obligations. O financial statements and financial data are verifiable. When Auditee Company prohibits...
6. Which of the following statements is not correct? If (a) (b) (c) individual audit risk remains the same, detection risk has an inverse relationship to inherent risk and control risk. The auditor may make separate or combined assessments of inherent risk and control risk. Detection risk cannot be changed at the auditor's discretion The greater the inherent and control risks the auditor believes exist, the less detection risk that can be accepted. (d) 7. Inherent risk and control risk...
W&S Partners began the planning phase of the Cloud 9 audit.
As part of the risk assessment phase for the new audit, the audit
team needs to gain an understanding of Cloud 9’s structure and its
business environment, determine materiality, and assess inherent
risk. This will assist the team in developing an audit strategy and
designing the nature, extent, and timing of audit procedures.
Answer the following questions based on the additional information
about Cloud 9 presented in the appendix...
Review Garcia and Foster’s calculations of materiality
thresholds for the 20X2 Audit . Determine if the auditors correctly
applied the materiality concept in their risk assessment
procedures. Describe any problems you find and provide suggestions
for improvement. This question relates to step 2 of the Garcia and
Foster Audit Plan.
Step 2: Requires the audit team to obtain and document its
understanding of the client’s environment including internal
controls. This understanding allows auditors to identify
significant risks in the audit...
These are more choices to
choose from.
John Josephs, an audit manager for Tip, Acanoe & Tylerto, was asked to speak at a dinner meeting of the local Small Business Administration Association. The president of the association has suggested that he talk about the various phases of the audit process to help small business owners better understand what auditors do. John has asked you, his trusted assistant, to prepare an outline for his speech. He suggests that you answer the...
For #3,4 and 6 discuss the accounts they affect from the
standpoint of inherent risk?
Discuss the level of acceptable audit risk(low,medium,high)
you determined for pinnacle and what factors led to your
decision?
1. Your firm has an employee who reads and saves articles about issues that may affect key dlients. You read an article in the file titled, "EPA Regulations Encouraging Solar- Powered Engines Postponed? After reading the articde, you realize that the regulations management is relying upon to...
Most questions answered within 3 hours.
-
An MNE is this kind of industry when competition in one country
is essentially independent of...
asked 8 minutes ago -
. For this set of questions, determine what
proportion of a normal distribution is located betweeneach...
asked 43 minutes ago -
A college student is employed as a door-to-door newspaper
salesman. Historical data suggests that the student...
asked 1 hour ago -
MATLAB HW 11 problem using Switch Case and Input commands
Write a script file that calculates...
asked 1 hour ago -
Considering gravitational time dilation, calculate the time that
passes in Earth’s surface while 1 hour passes...
asked 2 hours ago -
Minitab Problem: Take the Lake Hume June rainfall data and find
use the processes outlined in...
asked 2 hours ago -
X Company is trying to decide whether to continue using old
equipment to make Product A...
asked 2 hours ago -
IN PYTHON ONLY !! Program 2: Re-work
program #5 (WeeklyHours) from the previous assignment such that...
asked 3 hours ago -
The average length of time between arrivals at a turnpike
toll-booth is 26 seconds. What is...
asked 5 hours ago -
(a) A piston at 6.1 atm contains a gas that occupies a volume of
3.5 L....
asked 6 hours ago -
Please answer true or false. Words
cannot be changed or added in to make it true...
asked 6 hours ago -
An empty test tube weighs 15.923 grams. Then,
MgCl2•6H2O is added into the test tube. After...
asked 6 hours ago