Statements1. Revenue and expense accounts are audited in conjunction with related2.3. The4.5.6.7.Material fluctuations revealed by analytical procedures should be investigated to determine whether they areindicative of materialin the financial statements.When paper paychecks are issued, the company'sof the company.A11accounts.department of the company should authorize changes in employee pay rates.should distribute them to the employeesis a list of all specific disclosures required by financial accounting standards.The primary purpose of theprimarily responsible for the fairness of the financial statements.The auditors should obtain a letter from the client's attorneys describingis to have the client's principal officers acknowledge that they are8.In estimating the total likely misstatement in the financial statements, the auditors should combinemisstatements, projected misstatements, and judgmental misstatements.9.If the auditors conclude that the total misstatement in the financial statements is material, they shouldrequest management to adjust the financial statements or issue a(n)opinion.10.An event occurring after the date of the balance sheet, but prior to completion of the audit, is called aFinancial statements that give effect to a subsequent event as though the event had occurred at the balancesheet date are known asfinancial statements.balance sheetmisstatementsAnswer

1. Revenue and expense accounts are audited in conjunction with related 2. 3. The 4. Statements Material fluctuations revealed by analytical procedures should be investigated to determine whether they are indicative of material the financial statements. 5. A 6. When paper paychecks are issued, the company's of the company. accounts. department of the company should authorize changes in employee pay rates. should distribute them to the employees The primary purpose of the primarily responsible for the fairness of the financial statements. 7. The auditors should obtain a letter from the client's attorneys describing is a list of all specific disclosures required by financial accounting standards. is to have the client's principal officers acknowledge that they are 8. In estimating the total likely misstatement in the financial statements, the auditors should combine misstatements, projected misstatements, and judgmental misstatements. If the auditors conclude that the total misstatement in the financial statements is material, they should 9. to adjust the financial statements or issue a/n) opinion balance sheet misstatements Answer

1. Revenue and expense accounts are audited in conjunction with related 2. 3. The 4. Statements Material fluctuations revealed by analytical procedures should be investigated to determine whether they are indicative of material the financial statements. 5. A 6. When paper paychecks are issued, the company's of the company. accounts. department of the company should authorize changes in employee pay rates. should distribute them to the employees The primary purpose of the primarily responsible for the fairness of the financial statements. 7. The auditors should obtain a letter from the client's attorneys describing is a list of all specific disclosures required by financial accounting standards. is to have the client's principal officers acknowledge that they are 8. In estimating the total likely misstatement in the financial statements, the auditors should combine misstatements, projected misstatements, and judgmental misstatements. If the auditors conclude that the total misstatement in the financial statements is material, they should 9. to adjust the financial statements or issue a/n) opinion balance sheet misstatements Answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

You are the audit team assign to audit the unaudited set of financial statements for XYZ Company Ltd. for year ended 30 June 2002. Prepare written report to highlight the audit procedures to be used to substantiate/confirm the amounts reported for following items on the financial statements provided: Revenue and accounts receivable Purchases and accounts payable
Which of the following statement is not related to role of audit committee? Approve remuneration and terms of engagement of the external auditor Monitor and review the effectiveness of the company’s internal control Monitor the integrity of the company’s financial statements To prepare the financial statement of the company in time
A3. Peng LLP is auditing the accounts receivable balance of a client. The senior in charge wants to ensure that the balance sheet assertions of existence, rights and obligation, completeness, and valuation are covered. Required: Explain how each balance sheet assertion is important for the audit of the accounts receivable balance.
which of the following application would an auditor apply to determine the probability of a corporation's account balance being in error? A) overinvolvement rations B) probability rules C) bayes theorem D) emprical formula
What is the main purpose of information presented in notes to the financial statements? • To provide disclosures required by generally accepted accounting principles. To correct improper presentation in the financial statements. To provide recognition of amounts not included in the totals of the financial statements. To present management's responses to auditor comments.
Which of the following can be used as a fundamental source of information in an audit? a. Money in the safe b. Oral testimony of the person responsible for accounting c. An e-mail from a supplier d. None e. Income statement
6. In which of the following situations does the internal auditor potentially lack objectivity? a. A payroll accounting employee assists an internal auditor in verifying the physical inventory of small motors. b. An internal auditor discusses a significant issue with the vice president to whom the auditee reports prior to drafting the audit report. c. An internal auditor recommends standards of control and performance measures for a contract with a service organization for the processing of payroll and employee benefits. d. A former purchasing assistant performs a review of internal controls over purchasing four months after being transferred to the internal audit department.
Question 10 When an auditor is reviewing an audit client's allowance for doubtful accounts the auditing is assessing which management assertion about the client's accounts receivables. Existance Completeness Valuation Rights and obligations
please answer with reason