Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Chapter 2, Problem 19DQP
To determine
Indicate whether the engagement is likely to be conducted under international auditing standards, AICPA auditing standards, or PCAOB auditing standards for each of the engagement stated.
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For each engagement described below, indicate whether the engagement is likely to be conducted under international auditing standards, AICPA auditing standards, or PCAOB auditing standards.
An audit of a U.S. private company with no public equity or debt.
An audit of a German private company with public debt in Germany.
An audit of a U.S. broker-dealer registered with the SEC.
An audit of a United Kingdom public company that is listed in the United STates and whose financial statements will be filed with the SEC.
An audit of a U.S. not for profit organization
An audit of a U.S. private company to be used for a loan from a publicly traded bank.
An audit of a U.S. public company.
An audit of a U.S. public company that is a subsidiary of a Japanese company that will be used for reporting by the parent company in Japan.
For each engagement described below, indicate whether the engagement is likely to be conducted under international auditing standards, U.S. generallyaccepted auditing standards, or PCAOB auditing standards.a. An audit of a U.S. private company with no public equity or debt.b. An audit of a German private company with public debt in Germany.c. An audit of a U.S. public company.d. An audit of a United Kingdom public company that is listed in the United States andwhose financial statements will be filed with the SEC.e. An audit of a U.S. not-for-profit organization.f. An audit of a U.S. private company to be used for a loan from a publicly traded bank.g. An audit of a U.S. public company that is a subsidiary of a Japanese company thatwill be used for reporting by the parent company in Japan.h. An audit of a U.S. private company that has publicly traded debt.
The accounting firm you work for has been hired to conduct an audit of ABCIn * c' * s financial statements ABC Inc. is a US - based publicly traded company . In conducting your audit , the suitable criteria or financial reporting framework that you would likely be evaluating the financial statements und be : Generally Accepted Auditing Standards . International Financial Reporting Standards . Generally Accepted Accounting Principles. PCAOB Generally Accepted Auditing Standards COSO Framework.
Chapter 2 Solutions
Auditing and Assurance Services (16th Edition)
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. 17DQPCh. 2 - Prob. 18DQPCh. 2 - Prob. 19DQPCh. 2 - Prob. 21DQP
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- Which of the following groups is responsible for developing auditing standards for public firms in the U.S.? A. American Institution of Certified Public Accountant (AICPA)B. Public Company Accounting Oversight Board (PCAOB)C. Organizations for Economic Cooperation and Development (OECD)D. Center for Audit Quality (CAQ)arrow_forwardRSM , Oman is one of the few audit firms in the Sultanate of Oman accredited with the Capital Market Authority of Oman which entitles the firm to act as statutory auditors (external auditors) of public joint stock companies, investment funds, licensed companies operating in the securities market and insurance companies registered in the Sultanate of Oman. Which of the following is the right of an External Auditor? Review data about material assets, net worth, liabilities, capital stock, surplus, income and expenditures. Inspect account books and accounting systems for efficiency, effectiveness and use of accepted accounting procedures. Visit the branches of the client and to access all accounting books and records Examine and evaluate financial and information systems, recommending controls to ensure system reliability and data integrity.arrow_forwardThe audit is subjected to the guidelines provided under the International Standards on Auditing. From the statements enunciated here under identify which one of the options does not show the objective of auditing? a. Auditing enables an auditor in determination of the true and fair view of the financial position of an enterprise b. Auditing enables the auditor to prepare the financial statements of an entity c. Auditing enables an auditor to express an opinion on financial statements d. Auditing enables an auditor in determination of the true and fair view of the operating results of an enterprise.arrow_forward
- What does the future of audit look like? Critically discuss this question from the perspective of: a) The UK Government b) The Financial Reporting Council (FRC) c) Investors d) The Accountancy Professional Bodies e) Accountancy Firmsarrow_forwardDistinguish between auditing standards and generally accepted accounting principles, and give two examples of each. Auditing standards: A. represent pronouncements by any of the organizations responsible for setting auditing standards. In the U.S. these standards are set by the PCAOB for public companies and broker dealers, and by the Auditing Standards Board of the AICPA for other entities. B. are ten general guidelines to aid auditors in fulfilling their professional responsibilities and maintain professional skepticism and exercise professional judgment. C. represent the combination of the six principles and four of the Statements on Auditing Standards (SASS) that are codified in the AU-C sections. D. outline specific rules for accounting for transactions occurring in a business enterprise for all private companies in the United States.arrow_forwardAustralian Auditing Standards establish requirements and provide application and other explanatory material on the responsibilities of an auditor. The Australian auditing standards (ASAs) issued by the Australian Auditing and Assurance Standards Board (AUASB) are intended to be applied to: Select one: a. all audits of companies incorporated under the Corporations Act 2001. b. only audits of entities listed on the Australian Securities Exchange. c.all audit, review, other assurance and related engagements conducted by external firms. d. all audit, review, other assurance and related engagements where the entity has more than five shareholders.arrow_forward
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