The date of the CPA’s opinion on the financial statements of the client should be the date of the: Select one: a. submission of the report to the client. b. closing of the client’s books. c. finalization of the terms of the audit engagement d. completion of all important a

Q: of transactions and account balances. Determining the audit strategy occurs during which phase of…

A: Answer : b. Planning stage  In planning stage the audit staff collates the background information…

Q: List the three reasons why an experienced member of the audit firm must thoroughly review audit…

A: Audit documentation: It is the record and documentation of the performance of auditors and it is…

Q: List and describe the required preengagement activities that auditors undertake before beginning an…

A: Pre-engagement activities: The summary of risk assessment procedure that need to be performed before…

Q: Depending on the severity of the audit issue, follow- Re-auditing the processes that originally led…

A: In an audit process, the following activities are involved: Planning  Fieldwork  Reporting or…

Q: What terms that must be included in the document prepared by the client

A: Engagement letter is the letter in which auditor defined the audit scope, its terms and other…

Q: Which of the following is the most important responsibility of the external auditor? a. To ensure…

A: An external auditor is a person outside the organization, who performs the audit, review of…

Q: The auditing standards regarding subsequently discovered facts refers to knowledge obtained aftera.…

A: Answer:   Option B

Q: Auditing standards require that the audit report must be titled and that the title must: Select one:…

A: Audit- An audit is physical examination of financial statements of a company by an auditor. A…

Q: Audit plan is always prepared after conducting: a. Interview of employees b. Review of financial…

A: Audit plan refers to plan of nature, time, and extent of conducting an audit to obtain sufficient…

Q: pect to subsequent events, briefly explain the main responsibilities of the external auditors during…

A: Auditing - Financial statement audits or an unbiased review and assessment of a company's financial…

Q: The primary reason auditors request responses to attorney letters is to provide auditorsa. The…

A: An attorney’s letter refers to a legal document that gives someone the authority to act for someone…

Q: After the financial statements are issued, auditors finish the substantive procedures. Identify the…

A: Introduction: Substantive processes must be carried out after the date of financial statements.

Q: Planning phase enables the auditor to obtain all the relevant background information to gain an…

A: The planning phase is the first phase of the audit process. It is the phase in which the objectives…

Q: Which of the following types of audit evidence generally is the most reliable

A: Answer:   Option B.

Q: Explain the purpose of an engagement letter which is signed immediately after the appointment with…

A: Engagement letter is an agreement letter drafted between the auditor and the organisation which…

Q: Name the record in which the auditor records the audit procedures performed, the relevant audit…

A: Auditing means checking the accuracy and reliability of financial statements. In the process of…

Q: Please briefly discuss the need for the auditor’s evaluation of post balance sheet events as well as…

A: Post balance sheet events means events that are passed after the balance sheet date. Going concern…

Q: Leno Manufacturing Company prepared the following factory overhead cost budget for the Press…

A: Flexible overhead cost budget: A flexible overhead cost budget is referred as a thorough plan for…

Q: What questions should be asked by an auditor prior to taking an engagement?

A:

Q: What shall the auditor do when he identified any matter that, although appropriately presented or…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: Which of the following would be an example of a reasonable assurance engagement?

A: The audit is done in order to review the financial statement and finds the errors and misstatement…

Q: Critically appraise the Internal Audit function of the company. Add information about the internal…

A: Answer:-  Internal Audit meaning:- Internal audit helps in the assessment of the company's internal…

Q: Which one of the following document is considered as a permanent audit file? Significant analysis of…

A: Permanent audit file is that file which is maintained during the full course of audit. Under this,…

Q: What is the parties reported by the auditor that are related to the results of the audit reports…

A: Audit is independent examination of financial statements of any company for the purpose of giving…

Q: Auditing standards are: a. Ways to obtain / collect proof of transaction b. A collection of rules…

A: Audit is defined as the examination of the books of accounts or financial statement of the entity…

Q: An audit includes a number of letters between the auditors and the company such as the report to…

A: Auditors are the professionals who check each detail furnished by the client through his/her…

Q: What are auditors’ responsibilities for subsequently discovered facts if these are identified…

A: Subsequently Discovered Facts: These are the facts that become available or known to the auditor…

Q: Following the date of the financial statements, auditors complete the substantive processes.…

A: Introduction: Following the date of financial statements, auditors are obliged to complete various…

Q: Analytical procedures issued in the planning stage of an audit, generally_______ Select one:   a.…

A: The question is asking about the purpose of analytical procedures in the planning stage of an audit.…

Q: The audit of historical financial statements should be conducted by the CPA professionals in…

A: The correct answer is given in the following steps for your reference.

Q: 1. Johnson & Johnson CPAs, is considering accepting an engagement to perform an audit for a new…

A: The on-site verification activity of a process or quality system, such as inspection or examination,…

Q: The audit director in charge is available for consulting and he approves the audit engagement before…

A: An audit is assessing vouchers, books of accounts records to see that they are accurately and…

Q: When an auditor uses the work of an expert, who has the responsibility for arriving at ar overall…

A: Introduction:- The auditor’s use of the work of an expertise in a field other than accounting or…

Q: re given financial statements and a Dupont analysis for Tesco and Ahold. What do you conclude about…

A: DuPont equation is used to calculate the return on equity by decomposing ROE in term of three…

Q: The execution stage of an audit involves: evaluating the results of the detailed testing and…

A: Auditing- The term "audit" is a very broad term that essentially means to thoroughly examine…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.