Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 25P
To determine
Prepare memo to explain the reporting responsibilities of an independent auditor.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
F3.
Question 7
Which of the following activities in not an element of a CPA firm's quality control system to be
considered in establishing quality-control policies and procedures?
1. Selecting personnel for advancement who have the necessary qualifications.
2. Deciding whether to accept or continue a client relationship.
3. Assessing a client's ability to establish effective internal controls.
4. Monitoring the effectiveness of professional development activities.
2
O 1
O 3
Question 5
Which ONE of the following should be carried out after the audit firm has accepted
an engagement as auditor?
A Contact the outgoing auditors to ascertain if there are any reasons they should not
accept the assignment
B Ensure the audit firm has the experience and resources to conduct the assignment
C Perform checks to ensure that there are no legal or ethical reasons why the new
audit firm cannot act as auditor
D Submit a letter of engagement to the directors
Chapter 4 Solutions
Survey Of Accounting
Ch. 4 - Prob. 1QCh. 4 - Prob. 2QCh. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - Prob. 5QCh. 4 - Prob. 6QCh. 4 - What is meant by separation of duties? Give an...Ch. 4 - 9. What are the attributes of a high-quality...Ch. 4 - 10. What is a fidelity bond? Explain its purpose.Ch. 4 - Prob. 10Q
Ch. 4 - Prob. 11QCh. 4 - Prob. 12QCh. 4 - Prob. 13QCh. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - Prob. 16QCh. 4 - Prob. 17QCh. 4 - Prob. 18QCh. 4 - Prob. 19QCh. 4 - Prob. 20QCh. 4 - Prob. 21QCh. 4 - Prob. 22QCh. 4 - Prob. 23QCh. 4 - Prob. 24QCh. 4 - Prob. 25QCh. 4 - Prob. 26QCh. 4 - Prob. 27QCh. 4 - Prob. 28QCh. 4 - Prob. 29QCh. 4 - Prob. 30QCh. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Fraud triangle Sam Sharp is an accountant with a...Ch. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 1ATCCh. 4 - Prob. 3ATCCh. 4 - Prob. 4ATCCh. 4 - ATC 6-7 Ethical Dilemma I need just a little extra...
Knowledge Booster
Similar questions
- ZYNGA (LO Z 3, 4, 5, 6, 8) Refer to the Why It Matters feature “How to Account for Virtual Sales at Zynga.” a. What are the inherent risks associated with the revenue transactions at Zynga? b. What are management’s incentives to fraudulently misstate revenue transactions? c. What controls should Zynga management have in place to mitigate the risks associated with revenue transactions? d. How might auditors use planning analytical procedures to identify any potential concerns with Zynga’s revenue? e. What might be considered sufficient appropriate evidence when auditing Zynga’s revenue transactions?arrow_forwardQuestion 5 a) List and briefly the main threats to independence and objectivity as identified in IESBA's Code of ethics for Professional Accountants, for each threat you should give an example. b) Briefly explain the fundamental principle of confidentiality and list the circumstances in which obligatory and voluntary disclosure of Information may be applicable. Professional accountants are often involved in many different types of work ranging from performing the external audit to providing wider assurance services. Where an external audit is carried out the auditor required to give an opinion as to whether the financial statements present fairly the activities of the business over a period of time. c) Explain the concept of true and fair presentation.arrow_forward15 Assume, Mr X is appointed as an auditor in XYZ Company. He intends to determine how well the individuals are trained for their jobs. From the following options choose the evaluation tool which may support the auditor to evaluate the job responsibilities of the employees. a. Test Control b. Observe process c. None of the options d. Interview Management Clear my choicearrow_forward
- Question 9 To test the reasonableness of the turnaround time of the applicable business process review, what tool can be used by the internal auditor? Group of answer choices Forcefield analysis Control sheets Check sheets Time and motion studyarrow_forwardRequired answer question 4 and 5arrow_forwardAccounting please answer question 9 accounting information. 9 Explain how the effectiveness of general control affects the auditor's test of automated application controls, including auditor's ability to rely on tests done in prior audit. 10, Explain the effects of a general controls on system-wide applications. 11. Explain ways in which auditor's obtain an understanding of client's general control. Objective 5arrow_forward
- Question 9 In making a decision of whether to take on a new audit client, the auditor should perform all of the following except: 1. Reviewing the credit rating of the proposed client. 2. Performing preliminary tests of internal controls. 3. Evaluating the firm's ability to service the client properly. 4. Inquiring of third parties as to the reputation of the proposed client. 3 O 1 O 2 O 4arrow_forwardQuestion 34 A transaction level internal control activity is best described as: An action taken by auditors to obtain evidence An action taken by company (client) personnel for the purpose of preventing, detecting and correcting errors and frauds in transactions. A method for recording, summarizing and reporting financial information. none of the answers provided are correctarrow_forwardQuestion 5 The primary purpose of establishing quality control policies and procedures for deciding whether to accepting a new client is to: 1. Enable the CPA fırm to attest to the reliability of the client. 2. Satisfy the CPA fırm's duty to the public concerning the acceptance of new clients. 3. Minimize the likelihood of association with clients whose management lacks integrity. 4. Anticipate before performing any fieldwork whether an unmodified opinion can be expressed. O 2 O 1 3 O4arrow_forward
- {Auditing} 7. Assume, Mr. Anwar is appointed as an auditor in Al-Noor Company. He intends to understand the mind set of managers and owners in the company. From the following options choose the evaluation tool which may assist auditor to understand the managers and owners: a. Test Control b. Interview employees c. Observe process d. None of the optionsarrow_forwardQuestion 8 Rule 201, General Standards, requires a member to comply with standards and interpretations. Which of the following is NOT a standard covered by Rule 201. Sufficient relevant data Due Professional Care Independence Planning & Supervision. 9 ) Which of the following situations would most likely be in conflict with the responsibilities principle? Auditors document their assessment of control risk following their study of internal control. Auditors perform the engagement with the performance level expected of competent auditors. Auditors obtain expertise in their client's industry as they are conducting the audit examination. Auditors are directly involved with a client manager in a strategic decision-making capacity.arrow_forward6-10 thank youarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,