Week 7 Homework
a. Items that do not need to be included in the auditor's report are:
That Bellamy is presenting comparative financial statements because both of the
years statements will be discussed to in the audit report.
A detailed descr
Week 5 Homework
a. Audit B represent the maximum amount of reliance that can be placed on internal control
because of the inherent limitations of internal control, and the need to perform certain tests of
balances such as con
Week 1 Homework
a) The ways that services provided by Consumer Unions are similar to the assurance
services provided by CPA firms are that they both aim toward ensuring quality of service,
customer satisfaction, and they both provide remedie
Week 4 Homework
1. Information and communication
2. Control environment
3. Risk assessment
5. Control activities
6. Information and communication
7. Control activities
8. Control environment
9. Risk assessment
10. Control acti
Week 2 Homework
a) Chen is liable to the bank because he issued false financial statements. The requirements
for common law fraud are all met. There was a material misstatement, scienter, intent
that the client relied on the false statements
1. easy d Which of the following is not a condition for a contingent liability to exist? a. There is a potential future payment to an outside party that would result from a current condition. b. There is uncertainty ab
Which of the following is not a balance-related audit objective evaluated in the audit of
b. Realizable value
The two primary classes of tr
A listing of all the things which the auditor will do to gather sufficient, competent evidence is
a. audit strategy.
b. audit program.
c. audit procedure.
d. audit risk model.
Shown below (1 th
Chapter 14 Audit of the Sales and Collection Cycle: Tests of Controls and
Substantive Tests of Transactions
A kind of genetic engineering happens in nature, with naturally occurring mutations and the dominance of certain strains. What is
different about todays processes and what makes them potentially dangerous and what should we consider natural and what is
Auditors must make decisions regarding what evidence to gather and how much to accumulate.
Which of the following is a decision that must be made by auditors related to evidence?
Several factors that have affected the increased number of lawsuits against
1. The growing awareness of the responsibilities of public accountants on
the part of users of financial statements.
Recording, classifying, and summarizing economic events in a logical manner for the purpose
of providing financial information for decision making is commonly called:
Describe the auditor's objective in an Audit of Internal Control over Financial Reporting
(AS No. 2) especially when there are accounting errors.
The auditors objective in an audit of internal control over financial reporting is to express an
opinion on t
Discuss the steps involved in setting the preliminary judgment about materiality. Class, the
concept of materiality is important in the context of auditing. Materiality is a function of the
time, the situation, and the people involved. What is m