There are many times that auditors have to use professional judgement to make important decisions during an audit. These include deciding which portions of the audit are material or most risky, which accounts are considered significant, which procedures to use to test these accounts, etc. Considering this, discuss these two questions:<\/p>
a)Whether it is more important for an auditor to have book knowledge or be able to think critically? <\/p>
b)Is there room for subjectivity in materiality judgements?<\/p>", "transcribed_text": "", "related_book": { "title": "Construction accounting and financial management", "isbn": "135017114, 978-0135017111", "edition": "2nd Edition", "authors": "Steven j. Peterson", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/246.jpg", "uri": "\/textbooks\/construction-accounting-and-financial-management-2nd-edition-246", "see_more_uri": "" }, "free_related_book": { "isbn": "979-8390283981", "uri": "\/textbooks\/wordpress-security-101-how-to-protect-your-website-from-hackers-1st-edition-979-8390283981-153209", "name": "Wordpress Security 101 How To Protect Your Website From Hackers", "edition": "1st Edition" }, "question_posted": "2024-06-13 13:24:39", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/what-are-some-analytical-tests-that-can-be-performed-to", "description": "What are some analytical tests that can be performed to detect fraudulent activity by vendors, and what are some ways to prevent vendor fraud from occurring in the first place?", "stars": 3 }, { "url": "\/study-help\/fundamentals-of-human-resource-management\/1410-the-health-and-safety-executive-hse-is-the-body-1757542", "description": "14-10. The Health and Safety Executive (HSE) is the body responsible for the regulation and enforcement of health and safety matters in the United Kingdom. Recently, the HSE has begun implementing...", "stars": 3 }, { "url": "\/study-help\/business-statistics-in-practice\/25-computer-chip-manufacturing-mediachip-manufactures-computer-chips-specifically-for-1982108", "description": "=+25. Computer chip manufacturing. MediaChip manufactures computer chips specifically for MP3 players. The process uses sophisticated lasers to imprint several hundred chips", "stars": 3 }, { "url": "\/a-was-paramounts-abovemarket-offer-for-time-inc-consistent-with", "description": "A. Was Paramounts above-market offer for Time, Inc. consistent with the notion that the prevailing market price for common stock is an accurate reflection of the discounted net present value of...", "stars": 3 }, { "url": "\/study-help\/questions\/various-offsets-refundable-and-nonrefundable-tax-offsets-meghan-royal-9919369", "description": "(Various offsets - refundable and non-refundable tax offsets) Meghan Royal, is a resident taxpayer aged 57, had the following transactions for the 2017\/18 tax year: RECEIPTS Income Stream Benefit...", "stars": 3 }, { "url": "\/study-help\/questions\/overthetop-technologies-ott-operates-a-computer-repair-and-web-consulting-8750315", "description": "Over-the-Top Technologies (OTT) operates a computer repair and web consulting business. News Now (NN) publishes a local newspaper. The two companies entered into the following transactions. (If no...", "stars": 3 }, { "url": "\/study-help\/questions\/the-following-financial-statements-and-additional-information-are-reported-ikiban-891648", "description": "The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets Assets At June 30 Cash Accounts receivable, net Prepaid expenses 2021 2020 $...", "stars": 3 }, { "url": "\/study-help\/questions\/at-an-air-show-a-jet-is-approaching-you-at-5694570", "description": "At an air show, a jet is approaching you at a speed of 140 m\/s. You hear the jet engine at 9. a frequency of 775 Hz. What was the emitted frequency of the jet engine? It was a hot day so the speed of...", "stars": 3 }, { "url": "\/study-help\/questions\/consider-the-following-classic-portfolio-choice-problem-two-assets-are-1345400", "description": "Consider the following classic portfolio choice problem. Two assets are available to an investor at time t. One is riskless, with simple return Rf from time t to t+1 , and the other is risky. The...", "stars": 3 }, { "url": "\/study-help\/questions\/what-type-of-alcohol-is-e2methylhex4en2ol-o-primary-o-secondary-5600731", "description": "What type of alcohol is (E)-2-methylhex-4-en-2-ol? O primary O secondary tertiary quaternary", "stars": 3 }, { "url": "\/study-help\/questions\/case-214-grocery-inc-grocery-inc-grocery-or-the-company-6450603", "description": "Case 21-4 Grocery Inc. Grocery Inc. (Grocery or the Company), an SEC registrant, is a wholesale grocery distributor and retailer in the United States. One of the Companys core businesses is...", "stars": 3 }, { "url": "\/study-help\/questions\/michael-eliad-redford-llp-memorandum-to-legal-assistant-from-4647212", "description": "Michael, Eliad & Redford LLP MEMORANDUM TO: Legal Assistant FROM: Robert Redford DATE: February 2, 2022 RE: General Food Equipment Limited v. Eileen Cisneros c.o.b. as Eileen's Coffee House Our File...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/hervin-enters-into-a-contract-to-paint-bobs-house-prior-2955799", "next": "\/study-help\/questions\/cost-curves-atc-150-1027-avc-123-1025-2955801" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "There are many times that auditors have to use professional judgement to", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/there-are-many-times-that-auditors-have-to-use-professional-2955800" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } } }