Which statement indicates a going concern? A. Management has no realistic alternative but to cease the operations of the entity. B. Management intends to liquidate the entity. C. Management intends to cease the operations of the entity. D. Management assumes the continuity of operation in the absence of evidences to the contrary

Q: Which of the following is not considered to be part of the internal control structure of a company?…

A:

Q: A fair presentation is achieved by compliance with applicable IFRSs. A fair presentation also…

A: The term fair presentation refers to the true presentation of the material facts in the books and…

Q: The analyst can obtain a better picture of the operating performance of an entity if percentage of…

A: The statement which is used to see the percentage change in one item in relation to other related…

Q: Which of the following is NOT likely to be considered as a management function? 1.Creating a…

A: The functions of management briefly refers to process of planning, controlling, staffing,…

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: CPA not to accept a new audit engagement

A: A CPA may not accept new audit engagement if he suspects that there will be a restriction in scope…

Q: 15-From the options given below identify an event or condition that may not cast significant doubt…

A: Answer

Q: high for all financial statements assertions, an auditor should document the auditor’s     A B…

A: An Auditor understanding of its environment, it's entity and then assessing the risk of material in…

Q: Under IFRS, the retrospective approach should not be used if: a.    retrospective application…

A: International Financial Reporting Standards (IFRS): International Financial Reporting Standards is a…

Q: Companies of all sizes try to reduce business risks, create disaster recovery plans, and also…

A: Business risk Business risk is the risk of lowering the profits of a company. Any factor that…

Q: Under IFRS, changes in accounting policies are a. permitted if the change will result in a more…

A:

Q: According to agency theory: Select one: a. The stakeholders are the principal. b. The management…

A: AGENCY THEORY In Agency Theory there are two important terms commonly used. These terms are…

Q: auditor’s written management representation

A: Option A is wrong because written representations are not made for cost-benefit justification.…

Q: If there is a Standard or Interpretation that specifically applies to a transaction, it overrides…

A: The answer for the True or false question on the applicability of Conceptual framework is discussed…

Q: For each situation below identify the threat and one fundamental principle that is comprised. a) An…

A: Fundamental Principle: There are five  five  Fundamental principles  which is as follows: Integrity…

Q: The accountant's report that expresses an opinion on an entity's internal controls would not include…

A: The auditor's report on the audit of internal control over financial reporting includes the…

Q: hich of the following is not used to overcome the agency problem? a. executive compensation b.…

A: Internal control- It is a process of assuring to achieve organizational's objectives by doing…

Q: Which of the following does not constitute fair presentation and compliance with IFRS? A) an entity…

A: When financial statements are devoid of substantial misstatements and adequately portray an entity's…

Q: Under what circumstances can you envision management using alternative one rather than alternative…

A: Under what circumstances can you envision management using alternative ones rather than alternative…

Q: Which statement is FALSE?

A: ANSWER The Second Statement is FALSE As it establishes a mutuality of interest between KPMG and the…

Q: Who oversees the organization’s system of internal control? a. None of the choices b. Process…

A: The internal controls are related to the organisation behaviour and process.

Q: In an auditor's report the absence of any reference to a material uncertainty about the entity’s…

A: Going concern means the assumption of the entity that it will go on and would be able to pay off its…

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: Agency problem arises due to the divergence or divorce of interest between the principal and the…

A: Since  the principals rely on agents to complete some transactions, there is disagreement over…

Q: explain each choices. Reportable conditions are matters that come to an auditor's attention and that…

A: Internal  Control: An entity's board of directors, management, and other people are the ones who…

Q: For which of the following matters should an auditor obtain written management representations?…

A: Solution: Auditor should obtain written management representations with respect to "Management’s…

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: IDENTIFY THE EFFECT OF THE FOLLOWING TRANSACTION TO THE RISK OF MATERIAL MISSTATEMENT TO FINANCIAL…

A: Internal audit can be done by internal employee of the company and is done on the requirement of…

Q: statement would appear in the:   a. Engagement letter.

A: The right answer is option c.  Management representation letter.

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 following does not constitute fair presentation and compliance with IFRS: a)  an entity rectify…

A: IFRS refers to International Financial Reporting Standards. It is a set of rules or guidelines which…

Q: Question 1 (i) Which of the following is not an example of internal control risk? A. Risks of…

A: Answers have been given in the next sheet.

Q: Scope Limitations. Situations in which auditors are unable to obtain sufficient appropriateevidence…

A: a.

Q: Which of the following factors are not relevant to the judgement involved in management's assessment…

A: A going concern is an accounting concept that refers to a corporation that is financially sound…

Q: Which of the following would assist an entity in cat and prevent fraud? a. Accounting…

A: Fraud:- When one person intentionally conducts some activities which are against the rules and…

Q: A According to shankman(1999), two features make agency relations special. One of this is inherent…

A: One of the features of a special relationship represents the conflict of interest between…

Q: Why is an entity permitted to change an accounting policy?

A: Accounting policies are the particular principles as well as procedures which are executed through…

Q: Which of the following is not considered to be part of the internal control structure of a company?…

A: Answer:  Publish accurate financial statements on a regular basis.

Q: Since accounting information is used for decision making. As a result of financial manipulations, it…

A: Option C is incorrect because Even though a fair accountant is hired the chances of being influenced…

Q: Which of the following is more likely to occur when an entity has effective internal controls?…

A: Internal control means the mechanisms, rules, procedures etc. which are implemented by a company to…

Q: nternal control can only provide reasonable, not absolute, assurance of achieving entity control…

A: Introduction:- Internal controls are the rules, and regulations and certain procedures executed by a…

Q: or each situation below identify the threat and one fundamental principle that is comprised. a) An…

A: There are 5 type of threats in respect of auditing  1_ Self interest threat  This arise when auditor…

Q: Which of the following best describes the responsibility of the CPA in performingcompilation…

A: Full form of CPA is Certified Public Accountants .Main responsibilities of a CPA are: Maintenance…

Q: A related party transaction is a transfer of resources, services, or obligations between related…

A: As per IAS 24  a related party transaction is a transfer of resources, services, or obligations…

Q: 2. The auditors who find that the client has committed an illegal act would be most likely to…

A: When auditors discover that a client has engaged in illegal activity, they are more likely to leave…

Q: Accdg. to PAS , related party disclosures are necessary *       to indicate the possibility that an…

A: Under the disclosure of related party, it requires disclosure of all the material in relation to the…

Q: Which of the following is correct about audit opinion? a. It does not assure the future viability of…

A: Correct option is A It does not assure the future viability of the entity Explanation The auditor's…