Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. Third-party users of the audit report expect the auditor to do all of the following EXCEPT: A) to determine whether financial statements are presented

image text in transcribed

5. Third-party users of the audit report expect the auditor to do all of the following EXCEPT: A) to determine whether financial statements are presented in accordance with GAAP. B) to provide a biased evaluation of the financial statements. C) to gather sufficient evidence to support their opinion D) to evaluate measurements and disclosures made by management- 6. Which of the following is NOT part of the responsibility of external auditors in performing audit procedures? A) determining whether the financial statements are free from material misstatement- B) ensuring the financial statements, in all material respects are prepared in accordance with the applicable financial reporting framework. C) obtaining sufficient appropriate audit evidence for preparing auditors' report D) Implementing a control system that will properly record business transactions in the accounting books and records. 7. Which of the following are reasons for the demand for auditing services? (1) There are agency risks derived from the conflict of interest between management and owner of the company. (1) There are information risks as to whether the financial statements are misleading to the intended users. (11)Since there is conflict of interest between management and shareholder of the company, auditing service provides a way to ensure that management performs its stewardship function. (iv)It is necessary to have an independent expert such as the external auditor to provide assurance that the financial statements have no material misstatement that may mislead the intended users. A) 1. (11) and (iv) B) (D. (ii) and (111) C) (i), (iii) and (iv) D) All of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk Based Auditing

Authors: Phil Griffiths

1st Edition

0566086522, 9780566086526

More Books

Students also viewed these Accounting questions

Question

=+What should be done to make the relationship more nearly linear?

Answered: 1 week ago

Question

1.5 Summarize HRM issues for small businesses.

Answered: 1 week ago