Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 14, Problem 29DQP
a.
To determine
State the deficiencies discovered by PCAOB with the use of substantive analytical procedures in testing revenue. Also, state the PCAOB recommendations to auditors to develop plausible expectations of revenue while performing substantive analytical procedures.
b.
To determine
State the procedures recommended by PCAOB to auditors to perform assess the risk of material misstatements. Also, state the deficiencies discovered by PCAOB regarding auditing disclosures.
c.
To determine
State the guidance provided to auditors by PCAOB for performing procedures that are specifically responsive to identified fraud risks.
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Students have asked these similar questions
Independent auditors perform audits on the
financial reports of public companies. This
type of auditing can best be described as:
Select one:
O 1. a discipline that assures financial
information presented by
management.
O 2. an activity whose purpose is to
search for irregularities.
3. a regulatory function that prevents
the issuance of improper financial
information.
O 4. a professional activity that
measures and communicates
financial and business data.
The PCAOB issues audit practice alerts to highlight new, emerging, or otherwise noteworthy circumstances. Revenue is the largest account in the financial statements for many companies, and many fraudulent financial reporting cases have involved the intentional overstatement of revenue. For these reasons, the audit of revenue is often a significant focus of PCAOB inspections. PCAOB Audit Staff Practice Alert No. 12, Matters Related to Auditing Revenue in an Audit of Financial Statements, provides guidance to auditors and also highlights several deficiencies in the audit of revenue as identified through inspections. Download the practice alert at www.pcaobus.org to answer the following questions:
What are the deficiencies identified by the PCAOB related to the use of substantive analytical procedures in testing revenue? What sources of information does the PCAOB recommend auditors use to develop plausible expectations of revenue when performing substantive analytical procedures?
What…
When planning the audit, the auditor should make inquiries of management in order to do the following, except
Group of answer choices
Determine whether management and other within the entity (e.g., internal audit function) have knowledge of any actual, suspected or alleged fraud affecting the entity.
Provide useful information concerning the risks of material misstatements in the financial statements resulting from management fraud.
Obtain an understanding of the accounting and internal control systems management has put in place to address fraud and error.
Obtain an understanding of management’s assessment of the risk that the financial statements may be materially misstated as a result of fraud.
Chapter 14 Solutions
Auditing And Assurance Services
Ch. 14 - Describe the following documents and records and...Ch. 14 - Prob. 2RQCh. 14 - Prob. 3RQCh. 14 - Prob. 4RQCh. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Prob. 7RQCh. 14 - Prob. 8RQCh. 14 - Prob. 9RQCh. 14 - Prob. 10RQ
Ch. 14 - Prob. 11RQCh. 14 - Prob. 12RQCh. 14 - Prob. 13RQCh. 14 - Prob. 14RQCh. 14 - Prob. 15RQCh. 14 - Prob. 16RQCh. 14 - Prob. 17RQCh. 14 - Prob. 18RQCh. 14 - Prob. 19RQCh. 14 - Prob. 20.1MCQCh. 14 - Prob. 20.2MCQCh. 14 - Prob. 20.3MCQCh. 14 - Prob. 21.1MCQCh. 14 - An auditor is performing substantive tests of...Ch. 14 - Prob. 22.3MCQCh. 14 - Prob. 23.1MCQCh. 14 - Prob. 23.2MCQCh. 14 - Prob. 23.3MCQCh. 14 - Prob. 24DQPCh. 14 - Prob. 25DQPCh. 14 - Prob. 26DQPCh. 14 - Prob. 27DQPCh. 14 - Prob. 28DQPCh. 14 - Prob. 29DQPCh. 14 - Prob. 30DQPCh. 14 - Prob. 31DQPCh. 14 - Prob. 32DQPCh. 14 - Prob. 33DQPCh. 14 - Prob. 34DQPCh. 14 - Prob. 37ICA
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