Auditing and Assurance Services (16th Edition)
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 26, Problem 16.2MCQ
To determine

Identify the option where an Independent CPA most likely would obtain information in the given case.

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Identify which of the major fundamental principles (responsibilities, performance, or reporting) is most closely related to each of thefollowing:a. The need for auditors to consider their financial relationships with prospective clients.b. An auditor has raised some questions with respect to management’s response to various inquiries concerning pending litigation facing the client.c. The auditors’ consideration of the effectiveness of the entity’s internal control on the nature, timing, and extent of substantive procedures.d. The auditors’ evaluation of the magnitude of a misstatement that would impact perceptions of the entity’s profitability. e. The auditors’ issuance of a disclaimer of opinion because of a significant scope limitation.f. Relevant education and experience requirements for CPA licensure.g. The inability of an audit examination to provide absolute assurance with respect to detecting all material misstatements.h. The requirement that auditors possess the skills and…
Which of the following statements is incorrect? Select one : a. Internal auditors provide assurance on the organization's governance , risk management and internal control processes . b. Communicating engagement outcomes is a critical component of all internal assurance and consulting engagements . c. Obtaining an a detailed understanding of the auditee is an important performing step. d. Independence refers to the organizational status of the Internal Audit function , whereas objectivity refers to the attitude of individual internal auditors .
In the integrated audit of an issuer, which of the following would not be considered an entity-level control? A. Management's established controls to monitor results of operations. B. The executive committee's process for assessing business risk. C. The board of directors' controls to monitor the activities of the audit committee. D. The outside auditor's assessment process of internal auditor competence and objectivity.
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