An auditor is skeptical about the assertion on the salary expenses. He collected information on the number of employees, categories of employees, their pay scales to estimate the amount of salary expenses. In this case the auditor is considering: a. Relationship between financial and non- financial information O b. Anticipated results of the entity O c. Comparable information from previous period o d. Similar industry information

An auditor is skeptical about the assertion on the salary expenses. He collected information on the number of employees, categories of employees, their pay scales to estimate the amount of salary expenses. In this case the auditor is considering: a. Relationship between financial and non- financial information O b. Anticipated results of the entity O c. Comparable information from previous period o d. Similar industry information

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

Explain why a company would hire internal auditors if they already have an external auditor. Compare the differences between an external audit and an internal audit. Review what you have learned about compliance audits. Determine when an auditor would be hired to perform a compliance audit.
A portion of fees earned by a CPA but not due until completion of an audit is what type of adjustment A. Prepaid expense B. Unearned revenue C. Accrued asset D. Accrued liability
Which of the following documentary evidence is considered ? the most reliable Select one a. Written policies and procedures b. Vendor invoices c. Letters from outside attorneys d . Employee time sheets
do family firms need audit ? explain what do we mean by auditors considering various risks related to the like hood to the material misstatement in the financial statement ? explain with examples
While reviewing a work paper on “pre-paid expenses” an auditor noticed that the schedule prepared by the audit team gave the opening balance, debits to the account, credits to the account and closing balance. Is the same sufficient documentation?
Under which of the following circumstances may member May charge a client a contingent fee? Group of answer choices a. May audits ABC Co. and wishes to charge it a contingent fee for the audit work. b. May audits ABC Co. and wishes to charge it a contingent fee for separate consulting work. c. May is examining prospective financial information for XYZ Co. and wishes to charge it a contingent fee for unrelated consulting services. d. May prepares TUV Co.’s tax returns and wishes to charge it a contingent fee for nontax consulting services.
please answer with reason