FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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According to the Daubert criteria, to qualify as an expert report, the report must:
- Use methodologies that have been subject to peer review without regard to the results of those reviews.
- Use only the most recent technologies if the expert can provide references as to their adequacy.
- Use techniques that are generally accepted in the profession, subject to peer review with a known error rate
- Use only the latest techniques or techniques the expert is good at explaining.
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- The first stage when an auditor considers the use of an expert is: a) assessing the objectivity of the expert. b) assessing the need to use an expert. c) assessing the expert's report. d) determining the scope of the work to be carried out.arrow_forwardA.“It is the auditors’responsibility to gather sufficient appropriate evidence to reachtheir opinion. Discuss the above statement by explaining the differences between the evidence’s sufficiency and appropriateness. Your answer should include a discussion of two types of audit evidence.arrow_forwardWhich of the following BEST (select one) describes why risk assessment can be viewed as the foundation of the audit function: a) Risk assessment provides a framework for allocating limited resources to achieve maximum benefits and value derived from the audit process. b) Risk assessment enables flexibility in approaching audits and the performance of control testing. c) Risk assessment enables an orderly approach to conducting audits. d) Rsk assessment provides for a measurement criteria to evaluate audit results and communicate to management.arrow_forward
- Which of the following best describes the relationship between auditing and attestation engagements Select one: a. Auditing is a subset of attestation engagements that focuses on providing clients with advice and decision support. b. Attestation is a subset of auditing that provides lower assurance than that provided by an audit engagement. c. Auditing is a subset of attestation engagements that focuses on the certification of financial statements. d. Attestation is a subset of auditing that improves the quality of information or its context for decision makersarrow_forward1. Please explain main points of Docket 046: Quality Control (PCAOB). 2. What is/was the major focus of that standard - setting project concerning standard - setting activity? 3. Why does the subject matter to accountants and auditors in the future? 4. What was the result or conclusion reached (if the standard has been issued already), or what seems to be the main direction of the standard - setting project as of the date you reviewed it? 5. How might practitioners apply the article's recommendations or strategies in the real world of the auditing profession?arrow_forwardExplain why it is important for audit documentation to include each of the following: identification of the name of the client, period covered, description of the contents, initials of the preparer and the reviewer, dates of the preparation and review, and an index code. (If an input field is not used in the table, leave the input field empty; do not select a label.) In audit documents Name of the client Period covered Description of the contents Initials of the preparer Date of preparation Index code Why is it important?arrow_forward
- Which of the following best describes the relationship between auditing and attestationengagements?a. Auditing is a subset of attestation engagements that focuses on the certification of financial statements.b. Attestation is a subset of auditing that provides lower assurance than that provided by anaudit engagement.c. Auditing is a subset of attestation engagements that focuses on providing clients withadvice and decision support.d. Attestation is a subset of auditing that improves the quality of information or its contextfor decision makersarrow_forwardExplain how PCAOB inspections can lead to improvements in audit engagement quality.arrow_forwardWhat is the benefit of continuous auditing? (Select the BEST answer) a) Faster identification of risk and controls assurance b) Inexpensive to implement c) Skilled resources are readily availablearrow_forward
- When a substantive audit strategy is adopted, an auditor will O determine internal controls are effective in mitigating risks. O increase the amount of their substantive testing. O test controls extensively. O not need to document the internal control system.arrow_forwardCritically Analyse the importance of quality management in auditing and assuranceand recommend how audit firms can address any quality control issues and ensurecompliance with auditing and assurance standards.arrow_forward1. Please explain how to Evaluate the Data Reliability When Developing Expectations. The data an auditor will use to develop expectations in the acquisition and payment cycle has been deemed reliable by the audit staff. 2. Please Discuss the likely factors the audit team will consider when making this determination.arrow_forward
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