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 assurance services

Questions and Answers of Auditing Assurance Services

Which of the following procedures would not be appropriate for an auditor in discharging his or her responsibilities concerning the existence of the entity’s stock?(a) Obtaining written
If the client maintains perpetual stock records and performs cyclical counts of stock rather than one major stock-take at the end of the year, what should the auditor do?(a) Suggest to the client
What should an auditor do to ensure that stock is stated at the lower of cost and net realisable value?(a) Select a sample of stock purchases made during the year and check the associated invoice to
In auditing fixed assets, why might the auditor decide to assess control risk at the maximum and perform predominantly substantive testing?(a) The number of additions to/disposals of fixed assets is
What audit procedure is most likely to detect the incorrect capitalisation of an expense to fixed assets?(a) Checking a sample of repairs and maintenance expenses to supporting documentation.(b)
You are currently reviewing the audit files of Eighties Fashions Ltd, a manufacturer and retailer of retro clothing. In your review of your audit assistant’s work on stock, you note the
Your firm is the auditor of Daybrook Insurance Brokers Ltd, which operates from a number of branches and provides insurance for the general public and businesses. The company obtains insurance from
You are currently planning the audit of Munchees Ltd, a manufacturing company which sells biscuits and snack foods to a large number of retailers nationally. You have turned your attention
Your firm is auditing the financial statements of Newthorpe Manufacturing Limited for the year ended 30 June 20X0. You have been assigned to the audit of the company’s fixed assets, which comprise
What are the three main audit objectives for cash, and why?
How might an auditor test to ensure that cut-off for cash has been correctly performed?
What information is requested in confirming bank deposit balances?
What effects may the acceptable level of detection risk have on substantive tests for reconciling bank accounts?
What are the three main audit objectives for investments, and why?
State and describe the functions that relate to investing transactions.
Discuss some of the special considerations involved in the audit of investments in group entities.
Joplin Ltd’s financial year ends on 30 June 20X1 and the company’s auditor, Hagan and Partners, conducts the annual audit during July and August. Hagan and Partners has prepared auditing
Dealtime Ltd is a company that has substantial investments in south-east Asia and carries out a significant volume of trading with the region. The company has substantial shareholdings in a number of
You have been asked by the chairperson of Beeston Trading Limited, Mrs Burton, to carry out an investigation of a suspected fraud by the company’s cashier. The cashier, Ralph Biggs, has left the
You are performing the audit of Galway Ltd for the financial year ended 30 June 20X0.Under the terms of a major loan contract, Galway Ltd is required to maintain certain financial ratios. If the
Identify the distinctive characteristics of the audit work associated with completing the audit.
Define the two types of after-balance-date events and indicate the potential accounting effects of each type. 3
What is the auditor’s responsibility for after-balance-date events? How does the auditor discharge this responsibility?
What is a solicitor’s representation letter? What effect might the failure of a solicitor to respond to a request for representation have on the auditors’ report?
What objectives are met in obtaining a management letter of representation? What is the relationship between a management letter of representation and other auditing procedures?
Discuss the various steps required in evaluating the findings of the audit.
What purpose does a management letter serve?
In the auditors’ completion of the audit, which of the following is not a subsequent event procedure?(a) Read available minutes of meetings of directors.(b) Make enquiries with respect to the
Which of the following would an auditor ordinarily perform during his or her review of after-balance-date events?(a) Analyse related party transactions to discover possible irregularities.(b)
The auditors are concerned with completing various phases of the examination after the balance sheet date. This period extends to:(a) the date of the final review of the audit working papers.(b) the
The following matters came to the attention of the auditors before the audit fieldwork was completed. Which one would require an adjustment to be made to the financial statements?(a) A discussion by
Auditors should send a letter of inquiry to those solicitors who have been consulted concerning litigation or claims. The primary reason for this request is to provide:(a) corroborative evidential
Which of the following is ordinarily included among the written management representations obtained by the auditors?(a) Sufficient audit evidence has been made available to permit the issue of an
Six months after issuing an unqualified opinion on a set of financial statements, the audit partner discovered that the engagement personnel on the audit failed to confirm several of the client’s
Subsequent to the issuance of the auditors’ report, the auditors became aware of facts existing at the report date that would have affected the report had the auditors then been aware of them.
Cosmos Ltd is a listed company that manufactures satellites and other communication equipment. It is now August 20X0, and the audit of Cosmos for the year ended 30 June 20X0 is nearing completion.
During the audit of the financial statements of Blackheath Manufacturing Ltd (BM), the managing director, Mr S. Hill, and the auditor, Mr P. Wales, reviewed matters that were supposed to be included
The financial year of Terry’s Tiles Ltd ended on 31 December 20XO. Your auditors’ report was signed on 26 February and the financial statements were issued on 9 March. Listed below are events
Brown and Collins, a firm of chartered accountants, is auditing the financial statements of Globe Ltd for the year ended 31 December 20X1. Tom Brown, the engagement audit partner, anticipates
State the main audit objectives for (1) sales transactions and (2) debtors’ balances.
What is the sequence of steps normally associated with processing of credit sales? For each step, identify one control.
What are the major files and printed outputs of computerised processing for sales transactions?
For each of the three functions pertaining to cash receipts transactions, formulate two questions that may be used in preparing an internal control questionnaire for this transaction class.
For the sales adjustment transaction class, indicate the three main types of transaction that might occur. For each transaction type, indicate one question that might be used in an internal control
What are some of the inherent risk factors that may affect (1) sales transactions and (2) debtors’ balances?
Discuss why the principal risk associated with the audit of sales and debtors is overstatement.
Indicate the transaction classes that should be considered in assessing control risk for debtors assertions. Should the acceptable level of detection risk be based on the planned or actual level of
What do you think are the three main assertions for debtors? Indicate the primary substantive procedures for those assertions.
Which of the following controls would most likely help to ensure that all credit sales transactions of the entity are recorded?(a) The invoicing department supervisor matches pre-numbered shipping
Which of the following internal control procedures would most likely ensure that all billed sales are correctly posted to the sales ledger?(a) Each shipment on credit is supported by a pre-numbered
Sales revenue is usually a very material balance within the financial statements of a company. Why would an auditor mainly focus his or her work on sales transactions occurring at the end of the year
Which of the following tests of control would provide audit evidence for the management assertion of completeness of revenue?(a) Observe separation of duties between filling and dispatching
After completing the testing of controls over cash receipts and sales adjustments, the auditor assesses the level of control risk to be higher than expected. How would this affect the auditor’s
Which of the following would most likely be detected by an auditor’s review of an entity’s sales cut-off?(a) Unauthorised goods returned for credit.(b) Excessive sales discounts.(c) Overlapping
Which of the following would give the most assurance concerning the valuation assertion of debtors?(a) Tracing amounts in the subsidiary ledger to details on shipping documents.(b) Comparing
You are conducting the interim audit of the Lancastrian branch of CB Wholesalers Ltd, fashionwear wholesalers. The branch is the largest single outlet of the company and has substantial annual sales
Ally McNeil is conducting the audit of a wholesale electrical goods distributor, Electra Ltd.Electra supplies appliances to hundreds of individual customers in the metropolitan area of Bigtown. It
Easy Europe Ltd (EE) is a large private company which operates a network of travel agencies throughout Middletown. EE uses a centralised on-line system to maintain its accounting records. Each branch
You have been assigned to the annual audit of Kaboom Ltd. You contacted the audit senior, Patrick Corr, and arranged a date to discuss the client and the current year’s audit.During your meeting
You are an audit senior and you have just finished the audit of Speedy Spares Ltd — a used car parts company. One month later...Your audit partner calls you into his office — he is not happy!
Western Ltd purchased the assets of Green Ltd. The financial report of Green Ltd was audited by Donaghue Partners, registered company auditors. While performing the audit, Donaghue Partners
Excregrow Ltd was a very successful fertiliser company operating in Sussex. The company had large stocks of fertiliser held in different locations throughout the county. The annual audit for 30 June
You are the external auditor of Kiwi Tours, a company which promotes New Zealand tours to the UK and owns a chain of duty-free shops. You have been auditing the company since it was listed on the
Identify the categories of management’s financial statement assertions and briefly explain each one.
Discuss the interrelationship between management assertions and the specific audit objectives developed for an entity.
What factors should the auditor consider when developing specific audit objectives?Can there be more than one specific audit objective for a particular account for each category of assertion? Explain.
Identify the types of auditing procedure that may be used to obtain evidence. For each procedure indicate one type of audit evidence that is obtained.
What information would you expect to see on a ‘standard’ audit working paper?
The objective of an audit of financial statements is:(a) to ensure that the company is free from all fraud.(b) to ensure that the financial statements are prepared in accordance with relevant
What audit procedure is most associated with completeness?(a) Checking that the sales ledger aged trial balance adds up.(b) Searching for all unmatched goods received notes.(c) Confirming a debtors
Inquiries of warehouse personnel concerning possible obsolete or slow-moving stocks provide assurance about management’s assertion of:(a) completeness.(b) existence.(c) presentation.(d)
To verify management’s assertion of existence, an auditor would most likely:(a) compare a sample of shipping documents to related sales invoices.(b) recalculate the total depreciation expense.(c)
Which of the following audit objectives was derived from the management assertion of rights and obligations?(a) Stock quantities include all products, materials and supplies on hand.(b) Liens on the
What does ‘sufficient appropriate’ audit evidence mean?(a) The amount of audit evidence that can be obtained given the time budget on the task.(b) Adequate evidence has been obtained in the
What would not be described as corroborating information?(a) Analytical evidence.(b) Confirmation from the bank.(c) Bank reconciliation prepared by the accounts clerk.(d) Attendance by the auditor at
What is not required as part of the audit process?(a) Substantive procedures.(b) Tests of control.(c) Assessment of materiality.(d) Procedures to obtain an understanding of the accounting and
The auditor’s permanent working paper file should not normally include:(a) copies of the memorandum of association.(b) extracts from the entity’s bank statements.(c) details of mortgages.(d) past
Under what circumstances can an auditor disclose information in the audit working papers?(a) When the working papers are subpoenaed by a court.(b) Ifthe Inland Revenue requests some information.(c)
During the course of an audit some of the following evidence is obtained by the auditor:1. creditor’s monthly statement from the entity’s files;2. management working papers in making accounting
A variety of specific auditing procedures for obtaining audit evidence is listed below.1. Send debtor’s confirmation letters to a number of the entity’s customers.2. Recompute depreciation
The audit partner of Smythe and Associates, Sally Smythe, receives a phone call from another auditing firm asking whether it can review the audit working papers of Identical Ltd, a client her firm
You are the audit partner of the accounting firm Cooper, Young and Partners. You are reviewing the work of an audit senior, Emily Tan, on your client Browns Ltd. You find the following working paper
Identify the four phases of a financial statement audit and discuss the time frame in which each of these occurs.
State the steps involved in accepting an audit engagement.
Why is it considered necessary for a successor auditor to communicate with a previous auditor? Identify three matters about which the proposed auditor should direct inquiries to the previous auditor.
Discuss the factors that an auditor must consider when deciding to accept an audit engagement.
Why is it important for an auditor to evaluate independence in deciding whether to accept a new client?
What are the purposes of an engagement letter?
Discuss the steps involved in the audit planning process.
Describe three types of information that an auditor might obtain to gain an understanding of the entity’s business and industry. How might these three types of information affect the audit plan?
Why is an auditor going to be interested in obtaining information about related parties in auditing an entity?
How can analytical procedures assist the auditor in audit planning?
The previous audit firm should tell the proposed audit firm:(a) the total cost it incurred in performing the audit of a company in the prior year.(b) its evaluation of the strength of the company’s
An auditor has been offered a new audit. What should the auditor do next?(a) The auditor should contact the client and discuss the risks associated with the audit for the purposes of planning.(b) The
The exercise of ‘due professional care’ requires that an auditor:(a) examines all available corroborating evidence.(b) critically reviews the judgement exercised at every level on the
Engagement letters are widely used in practice for professional engagements of all types. The primary purpose of the engagement letter is to:(a) remind management that the primary responsibility for
The element of the audit planning process most likely to be agreed with the client before implementation of the audit strategy is the determination of:(a) methods of statistical sampling to be used
In the tour of the client’s operations, the auditor noted two machines were not operating in the client’s factory. This meant that production was 25 per cent lower than normal. The factory
Analytical procedures used in planning an audit should focus on identifying:(a) material weaknesses in the accounting and internal control systems.(b) the predictability of financial data from
In performing your analytical review of sales, you find the following for a company with a 30 June year-end:Monthly gross profit April — 25 per cent May - 27 per cent June - 37 per cent July - 21

Showing 1600 - 1700 of 2689

First
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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