EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Question
Chapter 1, Problem 1.20MCQ
To determine
Concept Introduction:Preliminary engagement activities are preformed before accepting the audit engagement. These activities include understanding the client and its business, determining the audit engagement team.
To choose: The correct option.
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Students have asked these similar questions
Choose the preliminary engagement activity of an auditor.
O a. Establishing an understanding of the term overall audit strategy
O b. Assist the management in identifying and evaluating events
O c Establishing an understanding of the terms of the engagement
O d. Establishing an understanding of the term of audit planning
Which of the following documents or/ and procedures should be used by the auditor to gain a better understanding of the client ?
1 .Discussion with management
2. Communications with certain entities working in the same industry sector
3. Predecessor auditor assessment of the internal control
4. All answers are correct
The auditor should review information provided by those charged with governance and management identifying I. The names of all known related parties.II. Related party transactions.
Fairness and accuracy.
Rights and obligations.
Valuation and allocation.
Understandability and classification.
Chapter 1 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 1 - Prob. 1.1RQCh. 1 - Prob. 1.2RQCh. 1 - Prob. 1.3RQCh. 1 - Prob. 1.4RQCh. 1 - Prob. 1.5RQCh. 1 - Prob. 1.6RQCh. 1 - Prob. 1.7RQCh. 1 - Prob. 1.8RQCh. 1 - Prob. 1.9RQCh. 1 - Prob. 1.10RQ
Ch. 1 - Prob. 1.11RQCh. 1 - Prob. 1.12RQCh. 1 - Prob. 1.13MCQCh. 1 - Prob. 1.14MCQCh. 1 - Prob. 1.15MCQCh. 1 - Prob. 1.16MCQCh. 1 - Prob. 1.17MCQCh. 1 - Prob. 1.18MCQCh. 1 - Prob. 1.19MCQCh. 1 - Prob. 1.20MCQCh. 1 - Prob. 1.21MCQCh. 1 - Prob. 1.22MCQCh. 1 - Prob. 1.23MCQCh. 1 - Prob. 1.24PCh. 1 - Prob. 1.25PCh. 1 - Prob. 1.26PCh. 1 - Prob. 1.28P
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Similar questions
- Audit planning is a vital area of the audit primarily conducted at the beginning of audit process to ensure that appropriate attention is devoted to important areas, potential problems are promptly identified, work is completed expeditiously and work is properly coordinated. Required: b. Describe sources of relevant information for understanding a client's business.arrow_forwardThe primary objective of compliance auditing is toa. Give an opinion on financial statements.b. Develop a basis for a report on internal control.c. Perform a study of effective and efficient use of resources.d. Determine whether client personnel are following laws, rules, regulations, and policiesarrow_forwardIdentify how each of the following statements relates to the performance principle by considering which element(s) of the principle are related to that statement. (A statement may be related to more than one element.) Use the following elements in providing your response: Reasonable assurance • Planning and supervision • Materiality ⚫ Risk assessment • Audit evidence a. Evaluating the effectiveness of the client's internal control in preventing or detecting misstatements. b. Obtaining an understanding of the client's business and industry. c. Acknowledging that the risk of failing to detect a material misstatement cannot be reduced to zero. d. Obtaining confirmations from the client's customers as to the ending balances in accounts receivable. e. Preparing a written audit plan. f. Designing audit procedures to identify misstatements that would have a significant effect on financial statement users' decisions. g. Considering the likelihood that the account balance contains a material…arrow_forward
- The final stage in the client acceptance and continuance decision process involves: a. the auditor obtaining a management representation letter from the client. b. the auditor preparing an independence declaration statement. c. the client's audit committee meeting with the auditor. d. the preparation of an engagement letter.arrow_forwardUsing your selected objective, create an audit plan of the organization's financial statements that address the following, with support each with appropriate auditing standards. 1. Business Risks 2. Management Assertions 3. Audit Risk 4. Internal control and effect on audit proceduresarrow_forwardA tool used by auditors that serves as a cue to guiding audit planning around management’s assertions in various disclosures is known as: a. a GAAP Guide b. an audit planning meeting c. an audit program d. a disclosure checklistarrow_forward
- The use of an audit engagement letter is the best method of assuring the auditor will have which of the following?Select one: a. Cooperation from other auditors b. Auditor will obtain sufficient appropriate audit evidence. c. Access to all books, accounts and vouchers required for audit purpose d. Management representation letterarrow_forwardWho is ultimately responsible for determining that the objectives for an internal audit engagement have been met? A The individual internal audit staff member. B The CAE. (C) The audit committee. The internal audit engagement supervisor.arrow_forwardAnalyze what information the auditors are needed to provide to those in charge of the client's governance.arrow_forward
- Explain why the decision to accept a client is important and describe the primary features of client acceptance and continuance, including the purpose and content of an audit engagement letter.arrow_forwardAuditors gather information through communication with individuals internal and external to the prospective client. Which of the following would be internal to the client? O Communication with the previous auditor O Communication with third parties O Communication with client personnel O Communication with the client's industry peersarrow_forwardAn examination of part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit Select one: a. compliance audit b. operational audit c. financial statement audit d. production auditarrow_forward
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