FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Why would a company hire internal auditors if they already have an external auditor?
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- External auditors are obviously responsible for the audit of the financials. However what is their responsibility for the preparation of the financials?arrow_forwardwhat happen when the company do not do audit in their financial statement?arrow_forwardQuestion External auditors are very important gatekeepers. What was the cause of the breakdown in the relations of the company with its auditor? Do you think the auditors were correct in their point of view? Explain.arrow_forward
- Why is an independent audit committee important to a company?arrow_forwardWhat factors should an auditor evaluate or consider when deciding whether to keep working with a client? In what ways would this consideration influence the auditor company he or she works for in regards to retaining a client?arrow_forwardAs an internal audit explain how you applied it in your company?arrow_forward
- Which of the following is not part of audit evidence? Information gathered by the auditors from stock exchange Information contained in the accounting records Confirmation from third parties Audit firm quality control procedure for client acceptance and continuationarrow_forwardCritique the following claim: External auditors independence would be strengthened if company auditors were appointed by an independent oversight body.arrow_forwardWhat are the common challenges faced by accountants and auditors while performing their duties? Which skills should they acquire to help them overcome these challenges?arrow_forward
- Why is the audit of revenue recognition riskier for a new companyarrow_forwardWhy does an auditor not have responsibility to identify or assess all business risks?arrow_forwardHow has the Sarbanes–Oxley Act attempted to ensure that external auditors will be completely independent in the future?arrow_forward
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