12. The audit of revenue and receivables is of significant audit risk because Select one: a. The understatement of revenue results in a corresponding overstatement of net income b. Understatement of revenue has been a factor in many instances of fraudulent financial reporting c. Overstatement of revenue has been a factor in many instances of fraudulent financial reporting, d. The overstatement of revenue results in a corresponding understatement of net income

Q: The audit of revenue recognition generally involves significant audit risk for all of the following…

A: Answer: Concept: Audit is an independent investigation performed to identify any loopholes in…

Q: When performing audit procedures, the auditor is faced with an uncertainty of not detecting material…

A: Define sampling risk. Sampling risk is the risk that a sample statistic will differ from the true…

Q: The auditor's consideration

A: Materiality is a concept or convention within auditing and accounting relating to the…

Q: The auditor is not expected to, and cannot, reduce audit risk to zero and cannot therefore obtain…

A: Auditing is described as the on-site verification activity of a process or quality systems, such as…

Q: whether there is a reasonable possibility that the company's internal control system will fail to…

A: Internal control is the managements’ effective and efficient controls for achieving goals and…

Q: n auditor does not need to test the effectiveness of automated controls in a computerized system.…

A: Auditors are responsible are maintaining the account and checking accounts and checking accuracy of…

Q: In a single-entry system, what financial aspect is challenging to detect due to its limited…

A: Single entry system is simple as compared to double entry system as it records only a single aspect…

Q: The risk that the auditors will conclude, based on substantive procedures, that a material…

A: The risk you are referring to is known as the risk of substantive procedures not detecting a…

Q: 1. Please explain Audit of Long-term Liabilities 2. Please explain ISA540 and AU-C 540. 3. What are…

A: Long-term liabilities  relate to  fiscal  scores or debts that a company is  obliged to pay over an…

Q: 6. The auditors were not permitted to observe the taking of the client's physical inventory, a…

A: Auditing means the independent checking of company operation by outsider.

Q: hellooo, ito po yung ipapa-post ko: 1. Although the primary objective of an independent audit is…

A: An audit is an independent examination of an organization's financial statements, systems,…

Q: f the auditor believes that a misstatement is or might be intentional and the effect on the…

A: Auditor: The auditor is the professional person who is appointed to conduct the official scrutiny of…

Q: If the auditor learns before he starts the audit that the client's company uses excess cash (surplus…

A:

Q: Which of the factors below is NOT one of the purposes of the audit report? A. Indicate any scope…

A: The management of the company is the main responsible for preparing the financial statements which…

Q: In auditing accounts receivable, the negative form of confirmations request is used when A. Response…

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: i need the answer quickly

A: Analyzing the optionsa) Confirm more accounts receivable than earlier planned: This option would not…

Q: ________ is an unintentional misstatement that can be found in a financial statement during the…

A: Mistakes can either be intentional or unintentional. When such mistakes are not made on purpose or…

Q: From the following statements, identify which error/s creates material misstatement while reporting…

A: Material misstatement is referred to as an information in financial statements, which are actually…

Q: What is equity security?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: he factor that distinguishes an error from fraud or other irregularities is A) materiality. B)…

A: Lets understand the basics. Audit is an examination of book of account in order to give an opinion…

Q: Which of the following is least likely to be a factor that might indicate to an auditor that an…

A: special considerations are used by auditors where there is a high risk of material misstatements in…

Q: The overall objective in the audit of the acquisition and payment cycle is:  Group of answer…

A: Introduction:- An audit is an "independent examination of financial statements of an organization.…

Q: Detection risk is the risk that O a client's system of internal controls will not prevent or detect…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: ome account balances such as those for pensions and leases are the result of complex calculations.…

A: Answer: The correct answer is (3) inherent risk.

Q: egarding the confirmation of accounts payable is true?   Group of answer choices The confirmation of…

A: it is important to understand the client account payable and account receivable valences in order to…

Q: If an auditor believes that a misstatement might be intentional and the effect on the financial…

A: c) If the auditors prepare the procedure and if check whether the fraud have taken place or going to…

Q: of these two tasks is one of the major responsibilities of an auditor regarding the audited…

A: The Audit is said to be the process over there is an independent examination finance statement of…

Q: An independent auditor’s report is a guarantee that the financial statements are free from fraud or…

A: Auditor primary objectives is to give opinion on the financial statements and to give true and fair…

Q: t is generally acceptable for analytical procedures to be the only audit procedure used to test…

A: solution concept analytical procedure               Analytical procedure used as a audit procedure…

Q: Which of the following is most likely to be presumed to represent fraud risk on an audit?

A: The correct answer is: (D) improper revenue recognition. There are a few different types of fraud…

Q: . Identify from the following the situation/s where auditors are removed by the client. a. All the…

A: Solution: Following are the situations where auditors are removed by the client: 1. Involve in fraud…

Q: which of the following regarding errors is correct Select one: a. intentional misstatement of the…

A: The financial statements are said to reflect the correct and accurate picture of the company when…

Q: The risk of a material misstatement in the financial statements arising due to error or omission as…

A: Error or Omission is an unintentional mistake which leads to risk of material misstatement in the…

Q: An independent auditor has the responsibility to design the audit to providereasonable assurance of…

A: The independent auditor’s plays a vital role regarding the internal controls of a public company.…

Q: which of the following regarding errors is correct Select one: a. it is easier for the auditor to…

A: Ans. Errors can be of two types - i. Intentional error ii. Unintentional error Intentional errors…

Q: a) Explain why auditors’ reports are important to users of financial statements and why it   is…

A: Auditing means an examination of the financial statements of the company and ensuring that…

Q: Which of the following is NOT a purpose of an audit of financial statements? a.To express an opinion…

A: Introduction:- The main purpose of audit on entity financial statements to express an opinion as to…

Q: Q5. Distinguish between fraudulent financial reporting and misappropriation of assets. Discuss the…

A: 1) Fraudulent financial reporting - It is purposely done by the company to alter their financial…

Q: true when the auditor determines the client has a low risk of material

A: First option is wrong because risk of material misstatements is judged not only based on the…

Q: Which analytical procedures are most important in verifying notes payable? Which types of…

A: It refers to the evaluation of financial information via identifying and analyzing of plausible…

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: Which of the following statements is true regarding assertions in the revenue cycle?     All five…

A: under normal audit risk conditions the occurrence assertion would be more relevant than the…

Q: Which of the following is an incorrect statement?       a. The amount of audit work should vary…

A: The person that analyzes the books of the company is known as the auditor. The auditor checks all…

Q: What is the ethical value of applying the Fraud Triangle to assess the risk of material…

A: Fraud Triangle:   A fraud triangle refers to a framework that is used in auditing to explain the…

Q: The auditor faces a risk that the examination will not detect material misstatements in the…

A: Introduction: An auditor verifies the accuracy of videoed commercial transactions. Auditors must…

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.