Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Question
Chapter 20, Problem 29COQ
To determine
Identify the appropriate answer related to the least likely objective of CPA’s examination of a client’s MD&A.
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Which of the following audit objectives is to validate the assertion of presentation and disclosure? *
A. Investment income is included on the statement of comprehensive income at the appropriate amount
B. Income statement related items are appropriately recorded in the proper accounts in the statement of comprehensive income
C. The entity owns, or has a legal right to the investments included on the statement of financial position
D. Investments and related investment income accounts are properly classified described and disclosed in the financial statements, including notes, in accordance with the applicable PFRS
Which of the following audit objectives is to validate the assertion of classification? *
A. Investment income is included on the statement of comprehensive income at the appropriate amount
B. Income statement related items are appropriately recorded in the proper accounts in the statement of comprehensive income
C. The entity owns, or has a legal right to the investments included on the statement of financial position
D. Investments and related investment income accounts are properly classified described and disclosed in the financial statements, including notes, in accordance with the applicable PFRS
Which required SEC filing would contain the following content?
"Our auditors identified the following critical audit matter: Significant judgment may be required by the Company in determining revenue recognition for these customer agreements.
a)
8-K
b)
Proxy
c)
10-K
Chapter 20 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 20 - Prob. 1RQCh. 20 - Prob. 2RQCh. 20 - Prob. 3RQCh. 20 - Prob. 4RQCh. 20 - Prob. 5RQCh. 20 - Prob. 6RQCh. 20 - Prob. 7RQCh. 20 - Prob. 8RQCh. 20 - Prob. 9RQCh. 20 - Prob. 10RQ
Ch. 20 - Prob. 11RQCh. 20 - Prob. 12RQCh. 20 - Prob. 13RQCh. 20 - Prob. 14RQCh. 20 - Prob. 15RQCh. 20 - Prob. 16RQCh. 20 - Prob. 17RQCh. 20 - Prob. 18RQCh. 20 - Prob. 19RQCh. 20 - Prob. 20RQCh. 20 - Prob. 21RQCh. 20 - Prob. 22RQCh. 20 - Prob. 23RQCh. 20 - Prob. 24QRACh. 20 - Prob. 25QRACh. 20 - Prob. 26QRACh. 20 - Prob. 27QRACh. 20 - Prob. 28QRACh. 20 - Prob. 29AOQCh. 20 - Prob. 29BOQCh. 20 - Prob. 29COQCh. 20 - Prob. 29DOQCh. 20 - Prob. 29EOQCh. 20 - Prob. 29FOQCh. 20 - Prob. 29GOQCh. 20 - Prob. 29HOQCh. 20 - Prob. 29IOQCh. 20 - Prob. 29JOQCh. 20 - Prob. 29KOQCh. 20 - The assurance services that address user and...Ch. 20 - Prob. 30OQCh. 20 - Prob. 31OQCh. 20 - Prob. 32OQCh. 20 - Prob. 33OQCh. 20 - Prob. 34PCh. 20 - Prob. 35PCh. 20 - Prob. 36ITCCh. 20 - Prob. 37RDC
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Similar questions
- Which non-audit service may be provided to an SEC audit client? A- )Preparing the annual tax returns for review and approval by the client. B- )Designing the future state operating model for its finance and accounting functions. C- )Performing a valuation to support the client’s legal claim. D- )Developing, managing and executing portions of its internal audit plan.arrow_forwardFor each class of financial assets and liabilities, the entity shall disclose the fair value of that class of financial assets and liabilities in a manner that allows comparison with the corresponding carrying amount on the balance sheet. Why do you think that these disclosures contribute to improving the quality of information for users of financial statements? Comment criticallyarrow_forwardPSA 570 (Going Concern) states that a fundamental principle in the preparation of financial statements is the going concern assumption. Under this assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading or seeking protection from creditors pursuant to laws and regulations. The responsibility to make an assessment of an entity's ability to continue as a going concern rests with the Auditor Entity's management SEC Entity's creditorsarrow_forward
- TRUE OR FALSE 1. The application of PFRSs, with additional discostire when necessary, is presumed to result in financial statements that achieve a fair presentation. 2. According to PAS 1, an entity shall make an explicit and unreserved statement of compliance with the PFRSs in the notes only if the entity complies with all the requirements of PFRSS. 3. PAS 1 encourages, but does not require, the presentation of the preceding year's financial statements as comparative information to the current year's financial statements. 4. According to PAS 1. assets and liabilities or income and expenses are offset, unless separate presentation is required or permitted by a PFRS 5. According to PAS 1, PFRSs apply to financial statements as well as to other information presented in an annual report a regulatory filing or another document. 6. According to PAS 1, the line item "Cash and cash equivalents" should always be presented first in the statement of financial position. 7. PAS1…arrow_forwardA special purpose framework that is a non-GAAP financial reporting framework, that employs either a cash, tax, regulatory, contractual, or other basis of accounting. For example, a tax basis of accounting is used to file an organization’s tax return for the period covered by its financial statements. After performing a special purpose framework as decribed above, what level of assurance is provided to the financial statements?arrow_forwardWhich of the following information would be included in the introductory paragraph of the auditors’ report on internal control over financial reporting if the report is presented separately from the auditors’ report on the entity’s financial statements?a. The fact that the auditors conducted an audit of the entity’s financial statements.b. The definition of a material weakness in internal control over financial reporting.c. Statements identifying the responsibility of the auditors and management for internal control over financial reporting.d. A reference to the auditors’ report and opinion on the entity’s financial statements.arrow_forward
- Which of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions? A. IRS (Internal Revenue Service) B. SEC (Securities and Exchange Commission) C. FASB (Financial Accounting Standards Board) D. FDIC (Federal Deposit Insurance Corporation)arrow_forwardDo auditors have an obligation to report on (a) audited financial statements and (b) any additional information required by law?arrow_forwardWhat options are available to the auditor for presenting reports on the entity’s financial statements and internal control over financial reporting?arrow_forward
- Which of the following topics is not addressed in the auditors’ report for a public entity?a. Responsibilities of the auditor and management in the financial reporting process.b. Absolute assurance regarding the fairness of the entity’s financial statements in accordance with GAAP.c. A description of an audit engagement.d. A summary of the auditors’ opinion on the effectiveness of the entity’s internal controlover financial reporting.arrow_forwardWhich of the following statements is correct concerning an auditor’s responsibilities regarding financial statements? A. The fair presentation of audited financial statements in accordance with an applicable financial reporting framework is an implicit part of the auditor’s responsibilities B. An auditor’s responsibilities for audited financial statements are confined to the expression of the auditor’s opinion C. Making suggestions that are adopted about the form and content of an entity’s financial statements impairs an auditor’s independence D. The auditor’s report should provide an assurance as to the future viability of the entityarrow_forwardWhich of the following engagement is covered by the Framework for Assurance Engagements?* Consulting engagements. Preparation of tax returns External financial statements audit Internal financial statements auditarrow_forward
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