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: A careful reading of an unmodified opinion audit report indicates several important phrases. Explain…

A: An unmodified opinion, in the context of an audit or financial statement review, is a type of audit…

Q: Distinguish between fraudulent financial reporting and misappropriation of assets.

A: As per our guideline we provide solution to the one question but you have asked three different…

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: The auditor's consideration

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

Q: Why are receivables and revenue ripe areas for abuse or outright fraud? Income tax rules have been…

A: Receivables and revenue are ripe areas for abuse or outright fraud as no real event such as actual…

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: Auditing} 10. Choose the circumstances in which financial statements are not true and fair. a. When…

A: An auditor is a person who is responsible for auditing the financial statement of the company and…

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: t kind of report must an auditor submit

A: Persuasive audit evidence enables the auditor to express audit opinion without confusions.

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: The risk that a client's financial statements are susceptible to material misstatements is a.…

A: SOLUTION- INHERENT RISK IS THE RISK POSED BY AN ERROR OR OMISSION IN A FINANCIAL STATEMENT DUE TO A…

Q: ervasive effects on the financial

A: Pervasive misstatements are misstatement in financial statements that affect the essence of…

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: 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: 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: Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible…

A:

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: 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: f the auditor want to assure that Receivables have not been sold. What assertion he or she want to…

A: Existence represents that whether accounts receivable of the company really exist on a particular…

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: 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: 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: 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: whom should the auditors contact when they suspect a fraud? a. senior management b. audit…

A: Auditors are the persons who examine the financial statements of an entity to check the accuracy and…

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…

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.