type of audit report
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Q: Assume that you are an audit senior in charge of planning the audit of an entity that your firm has…
A: SOLUTION INTERNAL CONTROL IS A PROCESS FOR ASSURING OF AN ORGANIZATIONS OBJECTIVES IN OPERATIONAL…
Q: When planning to perform an audit, an accountant must have a clear understanding of audit risk and…
A: Audit risk It is the risk that financial statements are materially incorrect, even though financial…
Q: Which of the following best describes the auditors' approach to the audit of the ending balance of…
A: The audit seems to be a thorough and comprehensive review of the company's account books. Auditing…
Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing…
A: Subsequent events are the events occurring after the balance sheet date but before the financial…
Q: The audit partner has just advised you that he has been approached to accept the appointment of…
A: Ethical requirements are the principles that are followed to promote traits like fairness,…
Q: Subsequent to the date of the financial statements as part of his post balance sheet date…
A: Given: The condition for the deviation of the standard unmodified opinion of an audit.
Q: Which of the following substantive procedures would auditors most likely perform to obtain evidence…
A: Answer: Option b
Q: The internal control procedures in Dayton Company result in the following provisions.Identify the…
A: Internal control: Internal control is a process which ensures continuous reliability of…
Q: Ms. Sana is an accounting head in the Head office of Oman Steel Factory. The Oman Steel Factory is…
A: 1) The 3 interpretations of financial statement are: a) Reduction and decrease in the Sales and…
Q: Abbott & Partners audit firm has audited Pretty Valley Shire council for two years, performing both…
A: Audit evidence means supportings or documents used for the purpose of audit checking and…
Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing…
A: Subsequent event The events that occur before issuing the financial statement but after the…
Q: Assume that you are an audit senior in charge of planning the audit of an entity that your firm has…
A: Internal control appears to be the technique for managing the firm's risk and ensuring the firm's…
Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing…
A: a) Issuance of shares through a private placement offer becomes a part of the Type 2 event. This is…
Q: During a consulting engagement involving the development of a new accounts payable system, an…
A: Answer: The auditor reviewing the disbursements process should b. Report the control weakness to…
Q: Five months after issuing an unqualified audit opinionand an unqualified opinion on internal…
A: Subsequent events are the events which occur between the date of the financial statements and the…
Q: Which of the following types of audit evidence provides the least assurance of reliability?
A: Answer: Option B
Q: You are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You…
A: An audit is a process of checking and verifying the books of account and financial information of…
Q: The internal auditors of Brown Electrical Company report to the controller. Due to changes made in…
A: Review measures – the justification having the organization's fi nancial proclamations examined by…
Q: You are involved with the audit of Jelco Company for year 1 and have been asked to consider the…
A: Auditing: Auditing is the process by which assertions made by management about financial…
Q: nancial information you determine that there is a material misstatement in the accounts receivable…
A: INDEPENDENT AUDITOR’S’ REPORT TO THE MEMBERS OF FREEFALL INCORPORATEDReport on the Standalone…
Q: Field, CPA, is auditing the financial statements of Miller Mailorder, Inc. (MMI). Field has compiled…
A: inherent risk Inherent risk is the likelihood of misfortune dependent on the idea of an…
Q: Which of the following circumstances would most likely cause an audit team to performextended…
A: Audit procedures: These are the methods, techniques, and processes that are performed by the auditor…
Q: Golden bank recently appointed the accounting firm Sanford,Son and Golrich as the banks auditors.…
A: "Since you have asked multiple sub part question we will solve the first three question for you. If…
Q: An audit manager has led the audit of Topaz Ltd for the last three years. Evidence of a fraud…
A: Auditing It refers to the process under which a person who is called an auditor inspects, examines a…
Q: For the following independent situations, assume that you are the audit partner on the engagement:…
A: Audit opinion refers to the decision of the auditor which he takes after evaluating the financial…
Q: Which of the following engagement planning procedures would most likely assist the auditor in…
A: Answer: Option d.
Q: Which of the following circumstances would most likely pose the greatest risk inaccepting a new…
A: Auditors consider many factors before accepting an audit engagement. The factors may also vary from…
Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing…
A: a. This is a subsequent event because the issue of the private placement will occur before the date…
Q: You are meeting with executives of Cooper Cosmetics Corporation toarrange your firm’s engagement to…
A: (a)
Q: responsibilities of directors and auditors
A: In case of destruction of accounting records by fire, audit has to depend on available documents and…
Q: RST Inc. completed its fiscal year on December 31. Near the end of the fiscal year, the company’s…
A:
Q: For the following independent events, assume that each has a material effect on the financial…
A: An audit of financial statements is an examination conducted by an independent auditor on the…
Q: After fieldwork audit procedures are completed, a partner of the CPA firm who has not been involved…
A: As per Standard of Auditing the main focuses of Second Review is Confirmation of Financial…
Q: Assume a third party such as a successor audit firm quickly discovers a fraud that the predecessor…
A: Ethics can be defined as a conduct adopted by an individual in making the selection between right…
Q: As one of the year-end audit procedures, the auditor instructed the client's personnel to prepare a…
A: Bank confirmations are part of audit procedures. At every year bank balance as per cash book should…
Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing…
A: A subsequent event can be defined as an event which occurs after the date of account closing but…
Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing…
A: A subsequent event can be defined as an event which occurs after the date of account closing but…
Q: Which of the following is NOT a reason the auditor performs some substantive procedures at an…
A: solution interim audit An auditor may choose to perform the audit before the end of…
Q: In this situation, what type of audit report could your team possibly give to Bank Oman? a.…
A: Auditor: An auditor is a person or a group of people who is responsible for conducting an audit of…
Q: Which of the following substantive procedures should auditors ordinarily perform regarding…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: At the closing meeting, a representative of the top management of the auditee organisation informs…
A: It is not correct from side of representative of management to ask to re-examine the process during…
For the following independent and material situations, assume that you are the audit partner on the engagement:
- There was a fire that broke out a month before the year-end date. The fire has destroyed most of the accounting records and underlying receipts and invoices. Management has reconstructed the accounting records using its bank statements and other means, but they are uncertain if all material matters have been taken into account and they would like to wait until after a couple of months when subsequent receipts may assist them to compile further outstanding items. You have serious doubts as to the accuracy of the compiled figures and have been unable to verify any of the material balances.
- Kieko Co. Ltd has prepared financial statements but has decided to exclude the statement of
cash flows . Management explains to you that the users of their financial statements find this statement confusing and prefer not to have it included.
Required:
state what type of audit report are you going to issue. Explain your answer.
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- For the following independent situations, assume that you are the audit partner on the engagement: 1. In reviewing of subsequent events, you learned of heavy damage to the client's warehouse due to a fire occurred after year-end. The loss will partly be reimbursed by insurance. The newspaper described the event in detail. The client made adjustment to related inventories and buildings to reflect the loss. 2. All facts are the same as situation 1, but the client did not make adjustment to year end figure of inventory. 3. During the course of examination on your audit client, you suspect that a material amount of assets has been misappropriated through fraud. Management refuses to allow you to investigate further to confirm the suspicions. 4. The client's financing arrangements expired and the amount outstanding was past due. The client cannot renegotiate or obtain refinancing and is considering filing bankruptcy. Financial statements were prepared using the going concern basis and this…In October 2020, the head office of Joey Limited was damaged by a fire. A lot of the company's accounting records were destroyed before the audit for the year ended 31 December 2020 took place, as Joey Limited has no practice of using electronic accounting records. The company's financial accountant has prepared financial statements for the year ended 31 December 2020 on the basis of estimates and the information he has been able to salvage. You have completed the audit of these financial statements. a) Explain how your audit report would be affected by the fire at the head office of Joey Limited and the possible audit opinions in this situation. b) Compare the responsibilities of directors and auditors regarding the published financial statement of Joey Limited.In October 2020, the head office of Joey Limited was damaged by a fire. A lot of the company's accounting records were destroyed before the audit for the year ended 31 December 2020 took place, as Joey Limited has no practice of using electronic accounting records. The company's financial accountant has prepared financial statements for the year ended 31 December 2020 on the basis of estimates and the information he has been able to salvage. You have completed the audit of these financial statements. a) Explain how your audit report would be affected by the fire at the head office of Joey Limited and the possible audit opinions in this situation.Require:b) Compare the responsibilities of directors and auditors regarding the published financial statement of Joey Limited.
- Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing a report for his audit partner based on these results and will be attending a meeting tomorrow with the partner and representatives of the company to discuss them. The issue will be whether the financial report should be amended, or additional notes included for these subsequent events.Many of the items are not material and Stewart will recommend that no action be taken with respect to these. However, there are several items that Stewart believes are material and should be discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August. (b) The share issue is to fund the purchase of a 60 per cent stake in another company. The negotiations are in the final stages and although the contract is not yet signed it will be signed by 15 August. (c) A writ was lodged in the Supreme Court in the week after year-end claiming damages for…Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing a report for his audit partner based on these results and will be attending a meeting tomorrow with the partner and representatives of the company to discuss them. The issue will be whether the financial report should be amended, or additional notes included for these subsequent events. Many of the items are not material and Stewart will recommend that no action be taken with respect to these. However, there are several items that Stewart believes are material and should be discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August.(b) The share issue is to fund the purchase of a 60 percent stake in another company. The negotiations are in the final stages and although the contract is not yet signed it will be signed by 15 August.(c) A writ was lodged in the Supreme Court in the week after year-end claiming damages for…Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing a report for his audit partner based on these results and will be attending a meeting tomorrow with the partner and representatives of the company to discuss them. The issue will be whether the financial report should be amended, or additional notes included for these subsequent events.Many of the items are not material and Stewart will recommend that no action be taken with respect to these. However, there are several items that Stewart believes are material and should be discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August. (b) The share issue is to fund the purchase of a 60 per cent stake in another company. The negotiations are in the final stages and although the contract is not yet signed it will be signed by 15 August.(c) A writ was lodged in the Supreme Court in the week after year-end claiming damages for…
- Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing a report for his audit partner based on these results and will be attending a meeting tomorrow with the partner and representatives of the company to discuss them. The issue will be whether the financial report should be amended, or additional notes included for these subsequent events. Many of the items are not material and Stewart will recommend that no action be taken with respect to these. However, there are several items that Stewart believes are material and should be discussed at the meeting. These are as follows. (a) The board is planning to issue shares in a private placement on 15 August. (: another company. The negotiations are in the final stages and although the contract is not yet signed it will be signed by 15 August. (? lodged in the Supreme Court in the week after year-end claiming damages for illness allegedly caused by chemicals used at a subsidiar y company's…As one of the year-end audit procedures, the auditor instructed the client's personnel to prepare a confirmation request for a bank account that had been closed during the year. After the client's treasurer has signed the request, it was mailed by the assistant treasurer. What is the major flaw in this audit procedure? a. The confirmation request was signed by the treasurer. b. Sending the request was meaningless because the account was closed before the year end. c. The request was mailed by the assistant treasurer. d. The CPA did not sign the confirmation request before it was mailed.As the manager of the external audit team, you realize that the embedded audit module only writes material invoices to the audit file for the accounts receivable confirmation process. You are immediately concerned that the accounts receivable account may be substantially overstated this year and for the prior years in which this EAM was used.RequiredExplain why you are concerned because all ‘‘material’’ invoices are candidates for confirmation by the customer. Outline a plan for determining if the accounts receivable are overstated.
- the following independent situation, discuss the issue and describe the impact on the audit record with provide example Ii.Subsequent to the date of the financial statements, as a part of your subsequent event audit procedures, you observed that one of the purchaser’s two uninsured flora was broken because of a recent fireplace. The newspapers defined the occasion in element but the monetary statements and appended notes prepared by means of the purchaser did now not disclose the loss due to the fire.Assume that you will be unable to inspect the securities owned by the client on the balance sheet date. What changes should be made to audit procedures if the inspection is not performed until two weeks after the balance sheet date?Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing a report for his audit partner based on these results and will be attending a meeting tomorrow with the partner and representatives of the company to discuss them. The issue will bewhether the financial report should be amended, or additional notes included for these subsequent events. Many of the items are not material and Stewart will recommend that no action be taken with respect to these. However, there are several items that Stewart believes are material and should be discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August.(b) The share issue is to fund the purchase of a 60 per cent stake in another company. The negotiations are in the final stages and although the contract is not yet signed it will be signed by 15 August. The year-end for the company is 30 June and the audit report is due to be signed on 20…
