(2) () Which of the following audit procedures for obtaining audit evidence is correctlydescribed?A. Recalculation involves the auditor's independent execution of procedures or controls whichwere originally performed as part of the entity's internal controlB. Confirmation consists of seeking information of knowledgeable persons, within the companyor outside the companyC. Reperformance consists of checking the mathematical accuracy of documents or recordsD. Observation consists of looking at a procedure or process being performed by others) Of the following, which is the most reliable type of audit evidence?(3) (A. Confirmations mailed by outsiders to the auditors via the client.B. Copies of the sales contract held by the suppliers to demonstrate the purchase transactions ofthe client.C. Copies of sales invoices inspected by the auditors.D. Canceled checks returned in the year-end bank statement directly to the client.(4) () Which of the following attributes is likely to be unique to the audit work of CPA's ascompared to the work performed by practitioners of other professions?A. IndependenceB. CompetenceC. Due professional careD. Complex body of knowledge.(5) () Which ethical threat will be created when the client threatens to sue, or does sue, thefirm for work that has been done previously?A. Self-review threatB. Intimidation threatC. Familiarity threatD. Advocacy threat) Which of the following situations is most likely to represent a threat to objectivity?(6) (A. The audit team eats in a subsidised staff canteen whilst they are working on the audit.B. A member of the audit team working at a biscuit manufacturer accepts a present of a tin ofbiscuits when he attends the company inventory counting.C. The audit engagement partner of a hotel company accepts the use of hotel rooms free of chargeon a regular basis for weekend trips with his wife.D. The audit engagement partner accepts a Christmas card as a greeting each year from an auditclient.

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(2) ( > Which of the following audit procedures for obtaining audit evidence is correctly described? A. Recalculation involves the auditor's independent execution of procedures or controls which were originally performed as part of the entity's internal control B. Confirmation consists of seeking information of knowledgeable persons, within the company or outside the company C. Reperformance consists of checking the mathematical accuracy of documents or records D. Observation consists of looking at a procedure or process being performed by others

(2) ( > Which of the following audit procedures for obtaining audit evidence is correctly described? A. Recalculation involves the auditor's independent execution of procedures or controls which were originally performed as part of the entity's internal control B. Confirmation consists of seeking information of knowledgeable persons, within the company or outside the company C. Reperformance consists of checking the mathematical accuracy of documents or records D. Observation consists of looking at a procedure or process being performed by others

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1) Name and describe the main tasks, duties or powers of the PCAOB. 2) What is audit risk? 3) What is materiality and how is it used or applied by the auditor.
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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.…
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