Answered: 1. Explain the quantitative threshold…

Business

Accounting

1. Explain the quantitative threshold of a reportable operating segment.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 31RQSC

See similar textbooks

Related questions

Q: Which of the following is not ordinarily considered a factor indicative of increased financial…

A: Human resource qualifications, internal control mechanisms, the efficiency of government agencies,…

Q: Explain management’s responsibility for ethical financial reporting and describe the basic…

A: Management is liable for coverage and business the monetary data attributable to the subsequent…

Q: What is an engagement to attest on internal control over financial reporting? (

A: Internal control seems to be a procedure formulated and constructed by those in command of…

Q: True or false the audit committee is responsible for overseeing the entire financial reporting…

A: SOLUTION EXPLANATION- THE PRIMARY PURPOSE OF COMPANY'S AUDIT COMMITTEE IS TO PROVIDE OVERSIGHT OF…

Q: Which of the following topics is not addressed in the auditors’ report for a public entity?a.…

A: Auditing is a gathering of information and evaluation of evidence as to report on the degree of…

Q: 1. There are people who believe that the analysis of financial statements has limitations. Which of…

A: One of the major limitation in the analysis of financial statements is that in the preparation…

Q: Which of the following is least likely to be considered a financial statement audit risk factor?…

A: The financial statements of companies are audited mainly to create trust within the shareholders.…

Q: Which of the following questions best describes why an independent auditor is asked to give an…

A: It is the responsibility of management to maintain books of accounts, sound internal controls…

Q: If an organization’s operations rely heavily on the specialized expertise of its management team,…

A: To generate income, an entity has to manage its team at all the levels and must rely on the assets…

Q: Which of the following best describes why an independent auditor is asked to expressan opinion on…

Q: Simplified approaches for preparing pro forma statements assume that the firm’s past financial…

A: External auditors are businesses or people that are professionally trained and engaged in the job to…

Q: unqualified, qualified, adverse, or disclaimer

A: Unmodified and unqualified opinion - An auditor expresses and Unqualified and Unmodified if the…

Q: Which of the following statements is not true with respect to the auditors’ report on…

A: Internal Control: Internal control is a mechanism or procedure that the company implements so that…

Q: Which of the following best describes the role of analytical procedures near the end of theaudit…

A: Analytical procedures are performed near the end of audit engagement to provide an overall review of…

Q: Auditor’s need to be diligent

A: The auditor undertakes the audit of financial statements to express an opinion whether they…

Q: Operating segments that do not meet any of the quantitative thresholds A. Cannot be considered…

A: Operating segment is a segment or component which is engaged in business activities and incurs…

Q: Analytical procedures used when planning an audit should concentrate ona. Weaknesses in the…

A: Analytical procedures are used by the auditors to analyze the accounts and transactions of the…

Q: Which type of audit report specifies that financial statements do not present fairly the financial…

A: The audit is required to be conducted so as to examine the accuracy of the books of accounts,…

Q: What issues are introduced when component auditors examine a division, subsidiary, or segment of…

A: An independent auditor engaged in the audit of financial statement of a component, division or a…

Q: According to auditing standards, financial statements presented on a special-purpose framework…

A: According to auditing standards, financial statements presented on a special-purpose framework…

Q: Significant deficiencies in internal control are required to be reported a. Management of the unit…

A: A deficiency in internal control exists when the design or operation of a control does not allow…

Q: 3. Which of the following is NOT part of the control activities applicable to Financial Statement…

A: Solution Concept Financial statement audit During the audit of the financial…

Q: Assume that management had determined that its organization’saudit committee is not effective. How…

A: Here discuss about the details of weakness of the Audit committee which are affected into the…

Q: t assertions are provided to the auditor in the assertions letter, but are not disclosed on the…

A: Management Assertions are directly connected to the financial reporting framework adopted by the…

Q: The most important objective of risk assessment procedures performed by auditor is a. To identify…

A: As per ISA 315 IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENTS: The most important…

Q: Which of the following information would be included in the introductory paragraph of the auditors’…

Q: Independent auditors of financial statements perform audits that reducea. Business risks faced by…

A: Definition: An Independent Auditor performs audits and point out the risks involved in the business…

Q: In which of the following circumstances does not require auditors to modify the content of the…

A: Emphasis of auditor report is used by the auditor to provide additional information to the users of…

Q: Does a qualified opinion on management’s assessment of internal controls over the financial…

Q: Which report would not be appropriate for a public accounting firm to provide on financial reporting…

Q: which of the following application would an auditor apply to determine the probability of a…

A: An auditor is a person who performs the check of accounts and the financial statements to prepare a…

Q: Entity-level controls can have a pervasive effect on the entity's ability to meet the control…

A: Controls to monitor results of the operations is an entity level control. Controls to monitor the…

Q: A trade-off between the fundamental qualitative characteristics of relevance and faithful…

A: Relevance and Faithful Representation are two important characteristics of accounting information.…

Q: A major objective of written representations is toa. Shift responsibility for financial statements…

A: The auditor requires collecting sufficient and appropriate audit evidence during the audit for…

Q: Which of the following is not an analytical procedure? O a. Determine the nature of the audit O b.…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: When accountants are not independent, which of the following reports can they nevertheless issue?a.…

A: Auditing: Auditing is a gathering of information and evaluation of evidence as to report on the…

Q: Which of the following is not required for segment reporting? Reconciliation of reported segment…

A: Segment reporting is defined as a disclosure made by the public entities in which the financial data…

Q: TRUE OR FALSE A disclosure is considered material if it reflects the significant economic,…

A: Thanks for the Question Bartleby's Guideline: “Since you have asked multiple question, we will…

Q: S1: After conducting an audit and release of the audit report, the primary responsibility on the…

A: S1: After conducting an audit and release of the audit report, the primary responsibility on the…

Q: How can the qualitative faithful representation (reliability) characteristic be improved in…

A: Relevance refers to how useful the data is for the processes of financial decision-making. In order…

Q: Which of the following is the least independent piece of information to collect about a company that…

A: Audit represents the professional activity of examining the financial statements of the entity and…

Q: risk of material misstatement

A: The risk associated with the financial statements means the possibility of unidentified material…

Question

1. Explain the quantitative threshold of a reportable operating segment.

2. Differentiate management control from joint control.

3. When does an activity be part of related party transaction?

4. In case of erroneous recording or omission of reportable segments , how does it affect the financial position and financial operation.

5. What is the general purpose of financial disclosures of financial statements?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting Policies, Changes in Accounting Estimates and Errors

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

2. If an entity's business model's objective is to hold investments entity has a "hold to collect and sell" business model. The 1. During the period, an entity acquires an investment. The PROBLEMS PROBLEM 1: MULTIPLE CHOICE 1. During the period, an entity acquires an investment investment should be classified as a investment measured at fair value through O comprehensive income. b. investment measured at amortized cost. investment measured at fair value through profit or loss С. d. any of these in order to collect contractual cash flows that are solehy payments for principal and interests, then investments should be classified as а. investment measured at fair value through other comprehensive income. b. investment measured at amortized cost. C. c. investment measured at fair value through profit or loss. d. any of these 3. A permanent decline in the fair value of an investment in equity securities that the entity made an irrevocable election at initial recognition to subsequently…
Which one of the following concepts is an important issue for the Auditors of financial accounts? O a. Understandability concept O b. Business entity concept O c. Disclosure concept O d. Materiality concept
What is the qualitative characteristic of financial statements according to the Framework? a. Qualitative characteristics are broad classes of financial effects of transactions and other events b. Qualitative characteristics are the attributes that make the information provided in financial statements useful to others c. Qualitative characteristics measure the extent to which an entity has complied with all relevant standards. d. Qualitative characteristics are non-quantitative aspects of an entity’s position and performance and changes in financial position.
S1: Control is the power to govern the financial and operating policies of anentity so as to obtain benefits from its activities. S2: Consolidated financialstatements shall be prepared using uniform accounting policies for liketransactions and other events in similar circumstances. A. Only S1 is correct.B. Only S2 is correct.C. Both statements are incorrect.D. Both statements are correct.
what type of investigation should precede analysis of financial statements
Which of the following is the best description of reliability in relation to information in financial statements? Comprehensibility to users Influence on the economic decisions Freedom from material error and bias Inclusion of degree of caution of users
Determination of appropriate accounting for complex financial instruments by competent personnel. a. Strength b. weaknesses
How does an audit of financial statements pertain to agency theory?
Why is continuity assumption,separate entity assumption and cost principle so important for statement of financial position reporting?
What is the objective of financial reporting?a. Provide information that is useful to management in making decisions.b. Provide information that clearly portrays nonfinancial transactions.c. Provide information about the reporting entity that is useful to present andpotential equity investors, lenders, and other creditors.d. Provide information that excludes claims to the resources.
Which type of audit report specifies that financial statements do not present fairly the financial position, results of operations, and cash flows in conformity with accounting standards? A. Qualified report B. Adverse report C. Unqualified report D. Disclaimer of opinion
How do Accounting standards Increase Financial Statement Reliability?