Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 2, Problem 15.1MCQ
To determine
Identify the correct option that explains the given statement.
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Check out a sample textbook solutionStudents have asked these similar questions
Which of the following engagements is most likely to be considered an operational audit?
The auditor determines whether the organization is following provisions of laws and regulations.
The auditor examines information presented in an entity’s financial statements to determine whether the financial statements are presented fairly in accordance with the applicable financial reporting framework.
The auditor evaluates the organization’s efficiency in processing payments.
The auditor assists the client in preparation of financial statements.
Which of the following best describes the general contents of the introductory paragraph of the auditors’ report?a. A description of an audit examination, including the fact that the audit was conducted under standards established by the PCAOB.b. The auditors’ conclusion with respect to the fairness of the entity’s financial statements.c. Statements identifying the responsibility of auditors and management in the financial reporting process.d. The auditors’ conclusion with respect to the effectiveness of the entity’s internal control over financial reporting.
Which of the following is the primary responsibility of auditor?
a.
To ensure compliance with laws and regulations applicable on the entity
b.
To design, implement and maintain system of internal control.
c.
To ensure that financial statement comply with applicable financial reporting framework
d.
To express an opinion on true and fair view of the financial statements.
Chapter 2 Solutions
Auditing And Assurance Services
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - Prob. 10RQ
Ch. 2 - Prob. 11RQCh. 2 - State what is meant by the term peer review. What...Ch. 2 - Prob. 13.1MCQCh. 2 - Prob. 13.2MCQCh. 2 - Prob. 13.3MCQCh. 2 - Prob. 14.1MCQCh. 2 - Prob. 14.2MCQCh. 2 - Prob. 14.3MCQCh. 2 - Prob. 15.1MCQCh. 2 - Prob. 15.2MCQCh. 2 - Prob. 15.3MCQCh. 2 - Prob. 16DQPCh. 2 - Prob. 17DQP
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Similar questions
- Fundamental Principles (Comprehensive). In each of the following, identify which ofthe elements of the fundamental principles is most applicable. In addition, discuss whataction(s) (if any) you believe auditors should take with respect to these issues.a. An entity has contacted you about performing its audit engagement. You have not previously served a client in the entity’s industry, which has many industry-specific accounting issues that are both technical and complex.b. An entity has entered into a number of lease agreements. Based on the requirements ofGAAP, you believe that these obligations meet the criteria for being classified as capitalleases; however, the entity has elected to treat these leases as operating leases, providingfull and complete disclosure of this treatment in the footnotes to the financial statements.c. Because of a disagreement with its current auditors, an entity has contacted you aboutconducting its current-year audit. However, because the previous auditors…arrow_forwardWhich of the following is the most important responsibility of the external auditor? a. To ensure that financial statements comply with applicable financial reporting framework b. To ensure compliance with laws and regulations applicable to the entity c. To design, implement and maintain a system of internal control d. To express an opinion on a true and fair view of the financial statementsarrow_forwardWhich of the following is not a purpose of the Center for Audit Quality which is affiliated with the AICPA? a. to serve investors b. to serve the International Accounting Standards Board (IASB) c. to serve the capital markets d. to serve public company auditorsarrow_forward
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