A engagement quality control reviewer b engagement

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A. Engagement quality control reviewer B. Engagement partner C. Engagement team D. CPA firm 53. The engagement partner should take responsibility for the direction, supervision, and performance of the audit engagement in compliance with professional standards and regulatory and legal requirements, and for the auditor’s report that is issued to be appropriate in the circumstances. Supervision includes the following, except A. Tracking the progress of the audit engagement. B. Addressing significant issues arising during the audit engagement, considering their significance, and modifying the planned approach appropriately. C. Informing the members of the engagement team of their responsibilities. D. Identifying matters for consultation or consideration by more experienced engagement team members during the audit engagement. THE FINANCIAL STATEMENT AUDIT: CLIENT ACCEPTANCE AND PLANNING 54. Which of the following would an auditor most likely use in determining the auditor’s preliminary judgment about materiality? A. The anticipated sample size of the planned substantive tests.
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B. The entity’s annualized interim financial statements. C. The results of the internal control questionnaire. D. The contents of the management representation letter. 55. The auditor is required to determine three different levels of materiality: (1) materiality for the financial statements as a whole, (2) performance materiality, and (3) A. Overall materiality B. Planning materiality C. General materiality D. Specific materiality Page 10 56. Which of the following statements concerning materiality is not correct? A. When establishing the overall audit strategy, the auditor shall determine materiality for the financial statements as a whole. B. If, in the specific circumstances of the entity, there is one or more particular classes of transactions, account balances or disclosures for which misstatements of lesser amounts than materiality for the financial statements as a whole could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements, the auditor shall also determine the materiality level or levels to those particular classes of transactions, account balances or disclosures. C. Determining materiality involves the exercise of professional judgment. D. The materiality level for the financial statements as a whole determined in the planning stage of the audit should not be affected by changes in the circumstances of the engagement. 57. Analytical procedures used in planning an audit should focus on A. Reducing the scope of tests of controls and substantive tests. B. Providing assurance that potential material misstatements will be identified. C. Enhancing the auditor’s understanding of the client’s business and identifying areas of potential risk.
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