Question

. For each of the matters below, indicate through the appropriate letter the group of generally...

. For each of the matters below, indicate through the appropriate letter the group of generally accepted auditing standards to which the matter is most closely related (10 points).
A. General standards
B. Standards of field work
C. Standards of reporting

(1) The mental attitude and impartiality of auditors.
(2) Auditors' overall conclusion of the fairness of the client's financial statements.
(3) The use of an audit program to identify audit procedures to be performed during the engagement.
(4) Auditors' assessment of control risk after performing tests of controls.
(5) Accounting firm policies with respect to the level of expected continuing professional education.
(6) Client's disclosure of all pending litigation against the client at year end.
(7) The hierarchical review process used to evaluate the appropriateness of audit documentation prepared by assistants.
(8) Auditors' requests to obtain bank statements directly from institutions with whom the client does business.
(9) The client's use of accounting principles that are consistent with those used in prior years.
(10) Actions taken by auditors to communicate their level of involvement with and responsibility assumed for the client's financial statements.

Homework Answers

Answer #1

A. GAAP is a set of rules that have all the details about the business legalities as well as corporate. US GAAP is led by Financial Accounting Standards Board which is FASB.

B. In Standard of field work the auditor must have a proper understanding about the entity and the environment including it's internal control so they can evaluate risk of material misstatement of financial statements.

1. A (General Standards)
2. C (Standards of reporting)
3. B (Standards of field work)
4. B (Standards of field work)
5. A (General Standards)
6. C (Standards of reporting)
7. A (General Standards)
8. B (Standards of field work)
9. C (Standards of reporting)
10. C (Standards of reporting)

PLEASE LIKE THE ANSWER IF YOU FIND IT HELPFUL OR YOU CAN COMMENT IF YOU NEED CLARITY / EXPLANATION ON ANY POINT.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
19.   Under to PSA 260, those matters that arise from the audit of financial statements and...
19.   Under to PSA 260, those matters that arise from the audit of financial statements and in the opinion of the auditor, are both important and relevant to those charged with governance in overseeing the financial reporting and disclosure process are called a.   Audit matters of governance interest b.   Significant audit matters c.   Auditor findings d.   Material misstatement in the financial statements 20.   Audit matters of governance interest to be communicated to those charged with governance ordinarily include a.   Audit...
ADVANCED AUDIT Part A. Multiple Choice 1. Professional skepticism is: Select one: Select one: a. Necessary...
ADVANCED AUDIT Part A. Multiple Choice 1. Professional skepticism is: Select one: Select one: a. Necessary for a quality control system b. Adherence to the professional code of ethics c. An attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of audit evidence. d. The application of relevant training, knowledge and experience, within the context provided by auditing, accounting and ethical standards, in making informed...
Evaluating a potential client requires which of the following steps? Question 21 options: 1) Communicate with...
Evaluating a potential client requires which of the following steps? Question 21 options: 1) Communicate with the predecessor auditor. 2) Preplan the audit. 3) Establish the terms of the engagement. 4) None of these. Question 22 (3 points) What factor would most likely would cause a CPA not to accept a new audit engagement? Question 22 options: 1) the prospective client's unwillingness to permit inquiry of its legal counsel 2) the inability to review the predecessor auditor's documentation 3) the...
The following audit report was drafted by a trainee on the audit of Golf (Pty) Ltd...
The following audit report was drafted by a trainee on the audit of Golf (Pty) Ltd (“Golf”), a company which manufactures golf clubs. The trainee was asked to draft the report at the conclusion of the audit for the financial year end 31 March 2017 as part of on-the-job training and you have to evaluate his report. The shareholders of Golf included a clause in the company’s Memorandum of Incorporation which requires that the company’s annual financial statements are extremely...
Which term would best describe Just for FEET, Inc.’s increase in outstanding vendor allowance receivables of...
Which term would best describe Just for FEET, Inc.’s increase in outstanding vendor allowance receivables of $400,000 at the end of fiscal 1997 to nearly $29,000,000 at the end of fiscal 1998? Most likely true (highly probable) Fifty-fifty chance of being true Impossible/unbelievable Normal PSLRA is the anachronism for: Private Securities Liabilities Refund Act. Private Securities Litigation Reform Act. Pennsylvania State Legislators’ Retirement Account. Professional Society for Less Restrictive Auditing. Which of the following are key features of the PSLRA?...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT