Documentation of an Audit Data Analytic (ADA), should be sufficient enough such that: O An experienced auditor, with no prior connection to the engagement could understand the conclusions reached and significant judgments made An experienced auditor, who is familiar with the engagement could understand the conclusions reached and significant judgments made O An investor looking into the company could understand the conclusions reached and significant judgments made O Both "An investor looking into the company could understand the conclusions reached and significant judgments made" and "An experienced auditor, with no prior connection to the engagement could understand the conclusions reached and significant judgments made" are correct

Documentation of an Audit Data Analytic (ADA), should be sufficient enough such that: O An experienced auditor, with no prior connection to the engagement could understand the conclusions reached and significant judgments made An experienced auditor, who is familiar with the engagement could understand the conclusions reached and significant judgments made O An investor looking into the company could understand the conclusions reached and significant judgments made O Both "An investor looking into the company could understand the conclusions reached and significant judgments made" and "An experienced auditor, with no prior connection to the engagement could understand the conclusions reached and significant judgments made" are correct

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

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

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

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 40MCQ

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An assurance service is defined as a service thata. Provides auditing services to nonfinancial information.b. Reviews unaudited financial information.c. Improves the quality of information for decision makers.d. Reduces the risk in management decision making.
Consider the concepts of sufficient and appropriate audit evidence. Assess how audit risk relates to audit evidence. How do auditors audit accounting estimates and other subjective information? What are analytical procedures, and why are they a useful audit tool? Explain the importance of audit documentation.
Practice question: In the context of auditing, having competent technical abilities and skills as an accountant is more important than ensuring auditor independence and understanding the procedures to overcome threats to independence. Do you agree with this statement? Why or why not? Use examples to facilitate your explanation.
Which of the following best describes the relationship between auditing and attestationengagements?a. Auditing is a subset of attestation engagements that focuses on the certification of financial statements.b. Attestation is a subset of auditing that provides lower assurance than that provided by anaudit engagement.c. Auditing is a subset of attestation engagements that focuses on providing clients withadvice and decision support.d. Attestation is a subset of auditing that improves the quality of information or its contextfor decision makers
TRUE OR FALSE. AUDITING 1. Financial statement users need to have an understanding of both the accounting and audit functions in order to better appreciate the assurance provided by an independent auditor on the fairness of the financial statements 2. The practitioner can accept an engagement if preliminary knowledge of the engagement circumstances indicate that ethical requirements regarding professional competence may not be satisfied 3. Professional competence can be satisfied by the practitioner using the work of persons from other professional disciplines referred to as experts 4. The practitioner plans and performs an assurance engagement using his professional judgment to obtain sufficient appropriate evidence about whether the subject matter information is free from material misstatement.
Audit evidence is more persuasive when : A_Information is provided by the board of directors of the company B_ The audit team comprises of high quality personnel C_ Audit evidence is inconsistent with that from another D_ Items of evidence from different sources or of a different nature are consistent
What knowledge does the auditor need about the client’sbusiness in an audit of historical financial statements? Explain how this knowledge maybe useful in performing other assurance or consulting services for the client.
TRUE OR FALSE. AUDITING 1. An audit of accounting and financial system and controls to ensure reliability of recorded financial data is compliance audit. 2. Assurance engagement requires independence on the part of the auditor. 3. The intended user is the person or class of persons who engages the professional accountant 4. Appropriateness refers to quality, while sufficiency refers to quantity of evidential matter 5. The responsible party expresses an conclusion that provides a level of assurance as to whether the subject matter conforms, in all material respects , with the identified suitable criteria 6. The subject matter of an assurance engagement maybe presented as a point in time or covering a period of time. 7. In an audit of financial statements, the suitable criteria to be used is the Philippine Standards of Auditing. 8. Assurance refers to the responsible party’s satisfaction as to the reliability of the assertion being made by one party for use of another party. 9. When…
do you agree with the statement it audit should be considered absolute because it implies a distinction between regular auditors and auditors who examine computerized accounting information system why or why not
PLEASE ANSWER THIS ASAP. THANK YOU SO MUCH. 1.Which of the following statements is incorrect? a. Management assertions are implied or expressed representations by management about classes of transactions, account balances and presentation and disclosures contained in the financial statements. b. Transaction cycles may vary from one entity to another and may also be affected by the nature of industry of the client. c. The primary goal of an auditor in an audit is to issue an opinion that the financial statements of an entity are fairly stated, in all material respects, in accordance with the applicable financial reporting framework. d. Reasonable assurance is moderate but not absolute level of assurance that the financial statements are free from material misstatements. 2. Which of the following statements does not pertain to responsibilities of management and those in charge of governance? a. Establish and implement internal controls relevant to the preparation of financial reports.…
Having an audit performed on the company's financial statements BEST illustrates which of the following? () Signalling Information asymmetry C Moral hazard Cheap talk
Which of the following is most correct with respect to the use of analytical procedures? Analytical procedures may be used in evaluating balances in the testing O phase as long as the auditor also uses them in assessing the going concern assumption. Analytical procedures must be used throughout the audit. Analytical procedures are performed by studying plausible relationships between financial and nonfinancial data. Analytical procedures used in the testing phase of the audit are primarily O used that the auditor's understanding of the business is improved. direct an auditor's attention so