Financial statements an audit may be conducted in

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financial statements, an audit may be conducted in accordance with two sets of auditingstandards in their entirety. In this case, the auditor should add additional language to theAuditor's Responsibility paragraph to state that the audit was conducted in accordance with bothsets of auditing standards.Choice "d" is incorrect. The auditor may conduct the audit in accordance with both GAAS andauditing standards issued by the PCAOB. An additional statement would be added to theAuditor's Responsibility paragraph stating that both sets of standards were applied.Choice "c" is incorrect. It is acceptable for an auditor to apply both GAAS and auditingstandards of another jurisdiction or country.
Choice "a" is incorrect.In certain audit engagements, the auditor may be required to comply withInternational Standards on Auditing in addition to GAAS even if the audit is conducted in theU.S.A.Which of the following procedures should an auditor generally perform regarding subsequentevents?
Choice "a" is correct. When performing procedures regarding subsequent events, the auditorgenerally will compare the latest available interim financial statements with the financialstatements being audited to determine if any significant subsequent event occurred that wouldneed to be reflected in the statements being audited.Choice "d" is incorrect. Sending second requests to the client's customers who failed to respondto initial A/R confirmation requests is a substantive procedure that provides evidence aboutreceivables existing at year end, not about subsequent events.Choice "b" is incorrect. Internal control weaknesses should be communicated to those chargedwith governance, but this communication provides no evidence about subsequent events.Choice "c" is incorrect. Bank cut-off statements generally are reviewed for only a week to tendays subsequent to year-end. Reviewing them for a longer period such as "several months"would provide little additional audit evidence regarding the YE FS and thus would not be a costbeneficial procedure.

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Term
Spring
Professor
N/A
Tags
Accounting, Auditor s report

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