Sufficient and appropriate evidence isthe focus of the third field workstandard. *O TrueO FalseWhen the auditor concludes that thereis substantial doubt about an entity'sability to continue as a going concern,the auditor should consider thepossible effects on the financialstatements and the related disclosures.O TrueFalse

Audit is referred as an examination of the different books of accounts through an auditor that…

Answered: Sufficient and appropriate evidence is…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

STATEMENT 1: Audit documentation provide the principal support for the auditor's opinion on the fairness of the financial statements. STATEMENT 2: Audit documentation aid in planning and conducting for future audits. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct
TRUE OR FALSE? Management assertions are provided to the auditor in the assertions letter, but are not disclosed on the financial statements.
The reliability of evidence depends on the nature and source of the evidence. Which of the following presumption is correct about the reliability of audit evidence? Select one: a. Evidence from sources outside an entity is more reliable than evidence obtained solely from within the entity. b. All the given answers are correct. c. Evidence in the form of documents or written representations is more reliable than oral representations. d. Evidence obtained directly by the auditor is more reliable than evidence obtained from the client.
Disclaimer of opinion rendered by an independent auditor of financial statements stating that the financial statements have been presented fairly in accordance with GAAP. True False
What type of opinion is issued by the auditor on the financial statements when there is some limitation on the scope of the audit or when one or more items in the financial statements are not presented in accordance with applicable accounting principles?
discuss the type of opinion is issued by the auditorr if he or she is unable to determine the overall fairness of the financial statements?
Auditors use evidence to help them draw conclusions Select one: True False
A.“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.
The auditor has a responsibility to plan and perform the audit so as to obtain a _________ about whether the financial statements are free of material misstatement. Negative assurance Maximum assurance Absolute assurance Reasonable assurance
Discuss Briefly the fundamental principles of Duty of confidentiality An Auditor is required to express an opinion on the truth and fairness of the Financial statements which represents the objective of an audit. The Auditor in carrying out his duty seeks to obtain acceptable evidence to draw the necessary conclusions for a valid opinion to be expressed on the financial statements. Required: Describe audit evidence and justify why the auditor would require such evidence Identify FOUR sources of audit evidence and illustrate how these sources would affect the auditor’s reliance iii. Describe THREE attributes of audit evidence.
What do auditors consider when determining the extent to which the internal auditors’ work will affect the auditors’ procedures? A. The materiality of the account balance or transaction, the risk of material misstatement of the assertions, and the amount of subjectivity involved in evaluating the evidence gathered. B. Only the risk of material misstatement of the assertions related to the account balance, transaction, or disclosure and the amount of subjectivity involved in evaluating evidence gathered. C. Only the amount of subjectivity involved in evaluating the evidence gathered. D. Only the materiality of the account balance or transaction and the risk of material misstatement of the assertions.
Describe the audit opinion that should be given and explain why. a)When the client is not a going concern, in order to give a true and fair view, management may prepare financial statements on a basis other than going concern basis. The client which is no longer a going concern has still prepared the financial statements on the going concern basis. The client is unwilling to change their basis of preparation.

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