All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
auditing

Questions and Answers of Auditing

What types of disciplinary action may be taken if a member has violated the AICPA Code of Professional Conduct?
Newspaper headlines frequently highlight instances where business professionals, politicians, and others are accused of engaging in unethical behavior. In response, there have been numerous attempts
Identify some of the most important ways that the profession and society encourage CPAs to conduct themselves at a high level.
What are the three categories of members under the AICPA Code of Professional Conduct?
How did the Sarbanes-Oxley Act of 2002 increase criminal liability for auditors?
The following independent scenarios describe auditor behavior on an audit engagement. 1. Chad Lewis is the lead audit partner on the audit engagement of a publicly traded company. Chad followed
Identify the three broad categories of management assertions.
Identify the management assertion and presentation and disclosure-related audit objective for the specific presentation and disclosure-related audit objective: Read the fixed asset footnote
The following independent scenarios describe auditor decisions made during an audit engagement. 1. Chen Li worked on the audit of American Healthcare Associations (AHA), which operates hospitals and
What are the five elements of an effective professional judgment process?
Describe two of the more common judgment traps and biases.
Describe the liquidity activity ratios and explain why these ratios are useful to auditors.
Explain the purposes and benefits of audit engagement management software.
The following audit procedures were performed in the audit of inventory to satisfy specific balance-related audit objectives as discussed in Chapter 6. The audit procedures assume that the auditor
Use AICPA (www.aicpa.org) and PCAOB (pcaobus.org) auditing standards to answer the following questions about audit evidence and audit documentation. Required a. According to PCAOB Auditing Standard 3
In recent years the global economy experienced recession levels unprecedented since the Great Depression, and the instability of the Euro continues to cause volatility in stock and bond markets. Why
The minutes of the board of directors of the Tetonic Metals Company for the year ended December 31, 2016, were provided to you.Meeting of March 5, 2016The meeting of the board of directors of Tetonic
Target and Kohl's are chains of stores that cater to customers who desire name-brand goods at lower prices. The Securities and Exchange Commission (SEC) Form 10-K filing rules require management of
Following are statements of earnings and financial position for Wexler Industries.Required a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings, current
How should the auditor consider risks related to revenue recognition when assessing the risk of material misstatement due to fraud?
What types of inquiries should the auditor make when considering the risk of material misstatement due to fraud?
What constitutes a significant risk?
Describe examples of characteristics of transactions and balances that might cause an auditor to determine that a risk of material misstatement is a significant risk.
Describe which two factors of the audit risk model relate to the risk of material misstatement at the assertion level.
Provide two examples of factors that might increase the risk of material misstatement at the overall financial statement level.
This problem requires you to access PCAOB Auditing Standard No. 12, Identifying and Assessing Risks of Material Misstatements (pcaobus.org). Use this standard to answer each of the questions below.
Moranda and Sills, LLP, has served for over 10 years as the auditor of the financial statements of Highland Bank and Trust. The firm is conducting its audit planning for the current fiscal year and
Assume that you are concerned that your client has recorded revenues that did not occur. What audit objective would you assess as having a high risk of material misstatement?
Describe the types of procedures auditors perform as part of their risk assessment procedures.
In addition to inquiring of individuals among management who are involved in financial reporting positions, such as the CFO and controller, which additional individuals should you consider making
Auditing standards require that the engagement team members engage in discussion about the risk of material misstatement. Describe the nature of this required discussion and who should be involved.
Auditing standards require that the engagement team members engage in discussion about the susceptibility of the financial statements to the risk of fraud. How does this discussion relate to the
Why is it important to distinguish the auditor's assessment of the risk of material misstatement due to fraud from the assessment of the risk of material misstatement due to error?
Describe the types of overall responses by auditors to address fraud risk.
What do auditing standards require the auditor to consider when assessing the risk of material misstatements in revenue?
Describe the types of information that should be included in the auditor's working papers as evidence of the auditor's fraud assessment procedures.
The chapter vignette "Asset Misappropriation Collusion at Koss Corporation" on page 314 highlights the fraud at Koss Corporation, where the principal accounting officer, Sujata ("Sue") Sachdeva,
This problem requires you to access PCAOB Auditing Standards (pcaobus.org) to answer each of the following questions. You can access those standards by viewing content found under the link
Identify risks for extensive IT-based accounting systems.
Identify the traditionally segregated duties in IT systems.
An audit client is creating an online, Web-based sales ordering system for customers to purchase products using personal credit cards for payment. Identify three risks related to an online sales
The following are internal controls related to various cycles. 1. Sales invoices are matched with shipping documents by the computer system and an exception report is generated. 2. Receiving reports
A growing number of organizations have been the target of hacking attacks, or cyberattacks, in recent years. High-profile examples in the U.S. include Target Corp., Home Depot Inc., the Internal
How does the auditor use information obtained from the control risk assessment and testing of controls to plan audit procedures?
If the auditor assesses control risk as high for a transaction-related audit objective, what does that imply for detection risk and the level of substantive testing?
Explain how control risk assessment differs for an integrated audit versus a financial statement-only audit.
The information technology (IT) department at Jacobsons, Inc., consists of eight employees, including the IT Manager, Melinda Cullen. Cullen is responsible for the day-to-day oversight of the IT
Explain the relationship between the occurrence transaction-related audit objective and the existence and completeness balance-related audit objectives.
Indicate the four phases of the audit process. In which phase does the auditor perform tests of controls?
Define attributes sampling. For which types of tests do auditors use attributes sampling?
What are the three main phases of audit sampling? Are these phases the same for statistical and nonstatistical sampling methods?
Annie Zhao is using attributes sampling in testing controls over sales transactions. She is testing five attributes related to sales invoices using an ARO of 5% (confidence level of 95%), and zero
Why do CPA firms sometimes use a combination of positive and negative confirmations on the same audit?
Under what circumstances would an auditor choose to confirm information such as the right of return or special sales terms in addition to the customer balance?
Because revenue recognition is presumed to be a fraud risk in most audits, generally the double-entry nature of accounting means the existence of accounts receivable is also at risk. In recent
Assume you performed sampling for an accounts receivable population with a recorded population amount of $2,000,000. Tolerable misstatement is set at $100,000 for the test, and there are no
What is the relationship between ARIA for tests of details of balances and ARO for tests of controls?
Describe two major changes a client may make to its supply-chain management system and discuss how those changes might increase or decrease the risk of material misstatement in specific accounts.
Identify two types of substantive analytical procedures an auditor may perform in testing purchases.
Data analytics is a powerful tool in fraud detection and is often used to search for signs of fraud in the purchasing function. To learn more about data analytics as a fraud detection tool in
Explain how expense account analysis relates to the tests of controls and substantive tests of transactions that the auditor has already completed for the acquisition and payment cycle.
This problem requires you to research the disclosure requirements for fixed assets using the FASB Codification at www.fasb.org. Access to the FASB Codification requires that your educational
Describe factors the auditor should consider in developing an expectation for depreciation while performing a substantive analytical procedure for depreciation expense.
List three audit procedures that are primarily for the detection of fraud and state the type of fraud the procedure is meant to uncover.
Explain the relationship between the acquisition and payment cycle and the inventory and warehousing cycle in the audit of a manufacturing company. List several audit procedures in the acquisition
The table below is an excerpt from Apple Inc.'s Statement of f Shareholders' Equity for its fiscal year ended September 27, 2014:a. How would the auditor verify the balances as of September 28,
The Check Clearing for the 21st Century Act (Check 21 Act) allows recipients of paper checks to create a digital image of the original check, eliminating the need for further handling of the actual
Access AICPA Auditing Standard AU-C 450, Evaluation of Misstatements Identified during the Audit (www.aicpa.org), to answer the following questions: a. Describe the three types of misstatements that
Describe the five Trust Services principles.
Describe the key difference between a type 1 and type 2 SOC 1 report.
What type of report might a service organization use as a marketing tool to provide potential customers information about the internal controls related to security at the service organization?
With the rapid growth of cloud computing, many organizations are contracting with third-party service providers to process and store all kinds of data off site. In doing so, entities are now
What are the major differences between a compilation engagement and a preparation engagement?
McIver's Swimwear Distributors is a relatively small, privately held swimwear distribution company that operates in the Midwest and handles several product lines, including footwear, clothing, and
Refer to the Focus on Fraud feature "The Great Salad Oil Swindle of 1963" and answer the following questions. a. How did management perpetrate the fraud? b. What was management's incentive to
List some common incentives for managers to commit fraudulent financial reporting.
Refer to the Focus on Fraud feature "The Crucial Role of Professional Skepticism." a. What is professional skepticism? b. Why is professional skepticism helpful for detecting fraud? c. What are the
Obtain a copy of the report by the Global Public Policy Committee, "Enhancing Auditor Professional Skepticism" (November 2013) at www.thecaq.org/docs/research/skepticismreport.pdf. Answer the
The development of the PCAOB was one of the most significant components of the Sarbanes-Oxley Act of 2002. Go to the PCAOB's web site, www.pcaobus.org and answer the following questions. a. Identify
Sports Life World is a catalog retailer emphasizing outdoor gear, with a focus on fishing and hunting equipment and clothing. It prints an annual catalog containing over 200 pages of products, as
Companies can improve internal control effectiveness by implementing effective ongoing monitoring of their internal control processes. Identify ongoing monitoring procedures that an organization
Refer to the Focus on Fraud feature "The Importance of Internal Control for Safeguarding Assets at Chesapeake Petroleum and Supply, Inc." whichdescribes the embezzlement at Chesapeake Petroleum and
Refer to the Focus on Fraud feature "Moss Adams and the Meridian Mortgage Funds Fraud." a. Describe why Moss Adams was sued by the trustee for the bankrupt Meridian Mortgage. b. What is the trustee
KPMG LLP served as the external auditor for some of the largest subprime mortgage lenders in the U.S. leading up to and during the housing market crisis of the mid to late-2000s. The audits of two of
A report available at the web site of the Center for Audit Quality (CAQ) on professional skepticism discusses whether professional skepticism and professional judgment are the same thing. At the CAQ
The AICPA's Professional Ethics Executive Committee (PEEC) adopted a revised Code in January 2014, with an effective date of December 15, 2014. Additionally, the Code includes two conceptual
List the preconditions for an audit.
Refer to the Focus on Fraud feature "Controls to Address Fraud Risk." When assessing control design effectiveness, what types of controls would an auditor expect a client to have in place to address
In a financial statement audit, what controls will an auditor test?
Auditors who adhere to the professional auditing standards are viewed as conducting a quality audit. A lack of adherence to the professional auditing standards heightens the risk that the auditor
Refer to 5-90, which features details on the Ernst & Young-UK audits of Thornton Precision Components from 2004-2006. Use the ethical decision making framework presented in Chapter 4 to analyze
Refer to the Focus on Fraud feature "Common Types of Earnings Management Techniques." Why might it be difficult for auditors to disallow companies' preferences to decrease existing reserves? Explain
Assume that you are auditing a nonpublic U.S. client. You have obtained evidence that appears to be inconsistent with other evidence documented in the audit work papers. Refer to the Standards
At the PCAOB web site obtain a copy of the settled Disciplinary Order in the matter of Acquavella, Chiarelli, Shuster, Berkower & Co., LLP that was released by the PCAOB on November 21, 2013 (PCAOB
Refer to the Focus on Fraud feature "Lack of Oversight as a Control Weakness Leads to Embezzlement" and the Focus on Fraud feature "The City of Dixon, Illinois, Sues Its Auditor for $50 Million
You are helping to plan the audit for a client that is a U.S. public company. Your senior has indicated that it is important that planned audit procedures be modified to address assessed fraud risks.
Refer to the Standards Appendix to the text. Identify the PCAOB, AICPA, and IAASB guidance that relates to audit sampling. Review the definitions of sampling risk and compare across the three
Refer to Exhibit 9.4 and to the Focus on Fraud features "Channel Stuffing at Arthro Care-The Importance of Professional Skepticism" and "The Importance of Professional Skepticism in Auditing Revenue
What factors influence the reliability of data used in conducting planning analytical procedures in the revenue cycle?
What is the effect on the substantive tests of accounts receivable when the risk of material misstatement is assessed as low rather than high because a client has effective internal

Showing 9000 - 9100 of 10295

First
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved