Which of the following statements relating to the role ofprofessional judgment in the financial reporting process is(are) true?a. Different accountants may evaluate similar situationsdifferently.b. The determination of which items should be disclosedin notes to fi nancial statements requires professionaljudgment.c. Once a complete list of generally accepted accountingprinciples is prepared, judgment by accountants will nolonger enter into the fi nancial reporting process.d. The possibility exists that professional judgment latermay prove to have been incorrect.

Q: A summary of the company’s significant accounting policies is a required disclosure. Why is this…

A: Disclosure of accounting policies: Disclosure of accounting policies means disclosing the accounting…

Q: Which of the following statement best explains the need for a regulatory framework? A regulatory…

A: Financial statements are prepared for various purposes such as for external reporting, managerial…

Q: auditor's role in ensuring that rules and regulations

A: 1) Auditor shall obtain understanding of:          (a) Legal and regulatory framework…

Q: As per ISA 700, Which of the following is NOT a specific evaluation while forming an opinion on…

A: ISA 700 is International standard on auditing which deals with forming an opinion and reporting on…

Q: Which of the following is not an objective of the conceptual framework? O a. Provides guidance for…

A: A conceptual framework is a lucid arrangement of interrelated goals and fundamentals that can prompt…

Q: Which of the following questions best describes why an independent auditor is asked to give an…

A: It is the responsibility of management to maintain books of accounts, sound internal controls…

Q: Which is not a purpose of the IASB’s Conceptual Framework? -To assist auditors in forming an…

A: Which is not a purpose of the IASB’s Conceptual Framework::::: To assist preparers to develop…

Q: Generally Accepted Accounting Principles

A: Generally accepted accounting principles (GAAP) seek advice from a standard set of accounting…

Q: be viewed as a going concern C. The financial statements are reliable D. Accounting policies are…

A: Only items that fit the definitions of an asset, a liability, or equity are recognised in the…

Q: Generally accepted accounting principles play an important role in financial reporting.a. What is…

A: Requirement a:

Q: he following is a list of qualitative characteristics of useful accounting information identified in…

A: SOLUTION-  AN INDEPENDENT BODY OR ORGANIZATION WHICH IS INVOLVED IN PREPARATION OF FINANCIAL…

Q: The auditor's responsibility in relation to the assessment of going concern basis of accounting is…

A: as per ISA 570(revised) : Going Concern   The Auditor Responsibility is to obtain sufficient…

Q: fundamentals that will guide the development of financial accounting and reporting standards. The…

A: Conceptual Framework in Accounting Conceptual Framework which was proposed by the International…

Q: (Usefulness, Objective of Financial Reporting, Qualitative Characteristics) Indicate whether the…

A:

Q: Which of the following best describes the role of analytical procedures near the end of theaudit…

A: Analytical procedures are performed near the end of audit engagement to provide an overall review of…

Q: 16. What is the purpose of information presented in notes to financial statements? a. To present…

A: Disclaimer:- Since you asked multiple question in one question, we will provide you the answer of…

Q: nciples (GAAP) and are audited by CPA firms. Do investors need to worry about the validity of those…

A: GAAP = generally accepted accounting principles When CPA firms are audited they take all types of…

Q: Which of the following is correct about specific evaluation in forming an opinion on financial…

A: Auditing refers to the process of scrutinizing the financial statement of the business entity and…

Q: Financial statements are based on generally accepted accounting principles (GAAP) and are audited by…

A: The question seeks to know the investor's approach about the validity of financial statements based…

Q: Professional judgment plays a major role in the practice of accounting.a. In general terms, explain…

A: Accounting process: Accounting process is a system of collecting and organizing economic…

Q: Which of the following statements are True? a) The financial statements are management's…

A: management is primarily responsible for the preparation and presentation of financial statements.…

Q: Which of the following information is not shown in the opinion paragraph A. The accounting policies…

A: This questiontion is answered as per international standards on auditing

Q: Different extended report frameworks are designed for different groups of stakeholders.  Assuming…

A: We’ll answer the second question since the exact one wasn’t specified. Please submit a new question…

Q: An accountant may allow general distribution of reports based ona. An agreed-upon-procedures…

A:

Q: Why is an entity permitted to change an accounting policy?

A: Accounting policies are the particular principles as well as procedures which are executed through…

Q: nce. How could these materials be useful in accounting research? Provide exampl

A: GAAP is a set of methodologies and concepts used by businesses to produce financial statements and…

Q: Which is NOT the function of an auditor? a. To give a true and fair view b. To ensure compliance to…

A: The function of an auditor is to apply proper audit procedure to obtain appropriate audit evidence,…

Q: ly the same m

A: Financial Statements: Financial statements are condensed summary of transactiions communiicated…

Q: xplain the auditor's role in ensuring that rules and regulations are followed. How does this…

A: Non-compliance with applicable rules and regulations may hurt financial statements, as violators…

Q: Which of the following are important factors in ensuringthe integrity of accounting information?a.…

A: Certified Public Accountant (CPA): CPA is the accountant who is certified and licensed to examine…

Q: Financial statement are based on generally accepted accounting principles (GAAP) and are audited by…

A: Financial statements means Income Statement, Balance Sheet and Cash Flow Statement of the business.…

Q: If the auditor concludes that management’s use of the going concern basis of accounting is…

A: A material uncertainity is a condition where there is a reasonable…

Q: Which one of the following statements is not correct regarding financial accounting and management…

A: The correct option is  B. Only financial accounting involves the use of accounting information

Q: When accountants are not independent, which of the following reports can they nevertheless issue?a.…

A: Auditing:   Auditing is a gathering of information and evaluation of evidence as to report on the…

Q: Evaluation of the appropriateness of accounting policies used and the reasonableness of accounting…

A: Evaluation of the appropriateness of accounting policies used and the reasonableness of accounting…

Q: Directions: Please select the appropriate answer on the statement below; B - If the statement is…

A: First Reporting Standard is International Accounting Standards (IAS 1): Presentation of Financial…

Q: Explain certain accounting principles that are important for an understanding of financial…

A: While it would sound exhausting or exclusive, financial accountancy assumes a key half that allows…

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.