The following questions concern auditor responsibilities related to the identification and assessment of fraud risk. Choose the best response. a. While performing a preliminary assessment for a new client audit, the auditor de- termines that the client has had excessive growth over the past several years due to Chapter 10 / ASSESSING AND RESPONDING TO […]
The following questions concern the auditor’s responses to the possibility of fraud. a. When fraud risk factors are identified during an audit, the auditor’s documentation should include The Risk Factors IdentifiedWhich of the following is least likely to suggest to an auditor that the client’s management may have overridden internal control? The Auditor’s Response to […]
Thank you for taking my essay! Prompt: For this milestone, continue your analysis of the “Wealth Management Crisis at UBS” case study from Harvard Business Review by addressing the system flaws and repercussions identified for your final project case analysis. Specifically, your Milestone Three System Flaws and Repercussions analysis should: Analyze personal or professional […]
Listed below are various risks identified during audit planning that you have been asked to evaluate to assess whether they are significant risks. 1. Fernandez Wholesalers sells energy drinks to various distributors. As they have expanded sales to additional customers, there has been some increase in the age of accounts receivable, which could require an […]
The following questions concern the assessment of the risk of material misstatements. Choose the best response. a. Which of the following circumstances most likely would cause the auditor to suspect that there are material misstatements in the entity’s financial statements? (1) The entity’s management places no emphasis on meeting publicized earnings projections. (2) Significant differences […]
Chapter 8 introduced the eight parts of the planning phase of an audit. Which parts involve the evaluation of risk? 9-2 (OBJECTIVE 9-1) Why is it important for the auditor to consider the risk of material misstatement at the overall financial statement level? 9-3 (OBJECTIVE 9-1) Provide two examples of factors that might increase the […]
Your comparison of the gross margin percent for Jones Drugs for the years 2016 through 2019 indicates a significant decline. This is shown by the following information: 2019 2018 2017 2016 Sales (thousands) $ 14,211 $ 12,916 $ 11,462 $ 10,351 CGS (thousands) 9,223 8,266 7,313 6,573 Gross margin $ 4,988 $ 4,650 $ 4,149 […]
The following are various activities an auditor does during audit planning. 1. Review accounting principles unique to the client’s industry. 2. Determine the likely users of the financial statements. 3. Evaluate the appropriate financial statement measures for determining amounts. likely to be considered material by users of the financial statements. 4. Identify whether any specialists […]
AUDIT PLANNING AND MATERIALITY 1. What is meant by setting a preliminary judgment about materiality? Identify the mostimportant factors affecting the preliminary judgment.2. Distinguish between the terms performance materiality and preliminary judgment about materiality. How are they related to each other?3. Explain the difference between known and likely misstatements. Assume the auditortests a sample of […]
Visit the PCAOB’s website and locate the PCAOB’s Settled Disciplinary Order against David M. Burns issued on December 19, 2017, to answer the following questions: a. What position did Burns hold within the audit firm and how long had he served in that position? b. What audit client was related to this Disciplinary Order? c. […]
