43. Two characteristics of appropriateness are relevance and reliability. Reliability is
effectiveness of client internal controls, independence of information provider, and timeliness.
The more effective the internal control system, the
a. Scharfman appears to have conducted sham audits in each of these cases. He accepted
engagements and then completed them in a number of days, rather than weeks or months
as would typically be the case. He accepted weak evidence. He
a. Walk through is process whereby management follows a transaction from origination
through organizations process until it is reflected in the organizations financial records.
This process includes a combination of inquiry observati
A. There was intense pressure to keep the corporation's stock from declining further. This
pressure came from investors, analysts, and the CEO, whose financial well-being was
significantly dependent on the corporation's stock price.
Audit report address
Name of CPA firm
Audit report date
In this report the auditor has stated that they followed the standards of the P
Describe the major changes adopted by the PCAOB through the adoption of Auditing Standard
No. 16, Communications with Audit Committees, and explain whether, in your opinion, these
changes will help or hurt the audit communications process
The audit firm culture is in place to make sure that when an auditor has a hostile client they have
someone to go to for assistance. Audit firm culture is important in ensuring that individual audit
engagement partners resolve audit
- Improperly recording repairs and maintenance costs that should be expensed as fixed
- Lengthening the estimated useful lives and/or increasing estimated residual value of
depreciable assets without economic justificatio
A. Management has an incentive to bring the amounts in the allowance for doubtful
accounts back into income this year in order to offset the loss from the write-down in
a. Lockdown- This is a cash management arrangement with the bank whereby an
organizations customers send payments directly to a post office box number accessible
to the client bank; the bank opens the cash remittances and directly d
29. Misstatement is an error, either intentional or unintentional that exists in a transaction or
financial statement account balance.
32. The qualitative aspect of materiality refers to the notion that a misstatement or omission of