financial statements Archives - Page 6 of 13

Does AU-C 265 apply if the auditor is performing an audit of internal control that is integrated with the audit of the financial statements?

Posted on February 11, 2023 by Assessments

AU-C 265, “Communicating Internal Control Related Matters Identified in an Audit,” provides guidance to auditors on communicating deficiencies in internal control to management and those charged with governance when performing an audit under AICPA auditing standards. Visit the AICPA website (www.aicpa.org) and select “Research.” Next select “Standards” from the dropdown menu and then “Audit and […]

Identify the deficiencies in internal control that can be determined from the flowchart. Use the methodology discussed in this chapter. Include internal control deficiencies resulting from activities performed or not performed.

Posted on February 11, 2023 by Assessments

Internal controls 1 through 5 were tested in prior audits. Evaluate each internal control independently and determine which controls must be tested in the current year’s audit of the December 31, 2019, financial statements. Be sure to explain why testing is or is not required in the current year. 1. The general ledger accounting software […]

Why are the financial statement audit findings relevant to the auditor’s opinion on the effectiveness of internal controls over financial reporting?

Posted on February 10, 2023 by Assessments

Differences in Scope of Controls Tested in an Audit of Internal Control and an Audit of Financial Statements 1. Why are the financial statement audit findings relevant to the auditor’s opinion on the effectiveness of internal controls over financial reporting?2. Explain the difference in the requirements for reporting on the effectiveness of internal controls over […]

Which one of the following is a true statement about the required fraud risk assessment discussion?

Posted on February 10, 2023 by Assessments

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 […]

Which action regarding fraud is an activity related to performance of risk assessment procedures?

Posted on February 10, 2023 by Assessments

The following questions address fraud risk factors and the assessment of fraud risk. a. Which action regarding fraud is an activity related to performance of risk assessment procedures? (1) Document the results of procedures used to address the risk of fraud. (2) Discussions among the engagement team members regarding the risks of mate- rial misstatement […]

Based on the audit of the assets accounts and ignoring other accounts, are the overall financial statements acceptable? Explain.

Posted on February 10, 2023 by Assessments

You are evaluating audit results for assets in the audit of Roberts Manufacturing. You set the preliminary judgment about materiality at $50,000. The ac- count balances, performance materiality, and estimated overstatements in the accounts are shown next. Account Account Balance Performance Materiality Estimate of Total Overstatements Cash $ 50,000 $ 5,000 $ 1,000 Accounts receivable […]

Determine the likely users of the financial statements.Evaluate the appropriate financial statement measures for determining amounts. likely to be considered material by users of the financial statements.

Posted on February 10, 2023 by Assessments

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 […]

What position did Burns hold within the audit firm and how long had he served in that position?

Posted on February 10, 2023 by Assessments

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. […]

How does the information in the preceding paragraphs compare to the information in the Basis for Opinion section in the standard unmodified opinion audit report ex- ample for a public company shown in Figure 3-3 (p. 54)?

Posted on February 9, 2023 by Assessments

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is […]

Describe how users of the financial statements may benefit from communications about these matters in an audit report.

Posted on February 9, 2023 by Assessments

The PCAOB’s recently revised auditor reporting standard includes a requirement for the auditor to communicate critical audit matters. Critical audit matters include those matters during the audit that involved difficult, subjective, or complex auditor judgments or that posed difficulty to the auditor in obtaining sufficient appropriate evidence or in forming the opinion on the financial […]

Essay Quoll

Tag: financial statements

Does AU-C 265 apply if the auditor is performing an audit of internal control that is integrated with the audit of the financial statements?

Identify the deficiencies in internal control that can be determined from the flowchart. Use the methodology discussed in this chapter. Include internal control deficiencies resulting from activities performed or not performed.

Why are the financial statement audit findings relevant to the auditor’s opinion on the effectiveness of internal controls over financial reporting?

Which one of the following is a true statement about the required fraud risk assessment discussion?

Which action regarding fraud is an activity related to performance of risk assessment procedures?

Based on the audit of the assets accounts and ignoring other accounts, are the overall financial statements acceptable? Explain.

Determine the likely users of the financial statements.Evaluate the appropriate financial statement measures for determining amounts. likely to be considered material by users of the financial statements.

What position did Burns hold within the audit firm and how long had he served in that position?

How does the information in the preceding paragraphs compare to the information in the Basis for Opinion section in the standard unmodified opinion audit report ex- ample for a public company shown in Figure 3-3 (p. 54)?

Describe how users of the financial statements may benefit from communications about these matters in an audit report.