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 7, Problem 14RQ
To determine
Propose a reply against the request of considering the internal control in order to reduce the cost of an audit.
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Students have asked these similar questions
Which of the following actions would be considered as self-interest threats? Select which two options are correct.
Select one or more:
A.
A member of the assurance team is a director of the client.
B.
An auditor acts as an advocate on behalf of an assurance client.
C.
An auditor has potential employment with an assurance client.
D.
One client provides a high percentage of total audit fees.
Auditors are required to assess any ethical threats before accepting clients and must either reject the appointment or mitigate the threats through measures put in place. Explain in detail these ethical threats and what appropriate measures that can be put in place to mitigate these threats.
A CPA should disclose confidential client information without the consent of the client to:
Another CPA firm that has taken over the audit for the client.
A PCAOB inspection team.
Another CPA firm if the information concerns suspected GAAP violations.
All of the above.
Chapter 7 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 6RQCh. 7 - Prob. 7RQCh. 7 - Identify the four types of control activities and...Ch. 7 - One basic concept of internal control is that no...Ch. 7 - Prob. 10RQ
Ch. 7 - Prob. 11RQCh. 7 - Prob. 12RQCh. 7 - Prob. 13RQCh. 7 - Prob. 14RQCh. 7 - Prob. 15RQCh. 7 - Prob. 16RQCh. 7 - Prob. 17RQCh. 7 - Prob. 18RQCh. 7 - Prob. 19RQCh. 7 - Prob. 20RQCh. 7 - Prob. 21RQCh. 7 - Prob. 22RQCh. 7 - Prob. 23RQCh. 7 - Management is responsible for designing and...Ch. 7 - Prob. 25QRACh. 7 - Prob. 26QRACh. 7 - Prob. 27QRACh. 7 - Prob. 28QRACh. 7 - Prob. 29QRACh. 7 - Prob. 30QRACh. 7 - Prob. 31QRACh. 7 - During your first audit of a medium-size...Ch. 7 - Prob. 33QRACh. 7 - Prob. 34QRACh. 7 - Which of the following would be least likely to be...Ch. 7 - Prob. 35BOQCh. 7 - Prob. 35COQCh. 7 - Prob. 35DOQCh. 7 - Prob. 35EOQCh. 7 - Prob. 35FOQCh. 7 - Prob. 35GOQCh. 7 - Prob. 35HOQCh. 7 - Which of the following is not an advantage of...Ch. 7 - Prob. 35JOQCh. 7 - Prob. 35KOQCh. 7 - Prob. 35LOQCh. 7 - Prob. 36OQCh. 7 - Listed below are controls that have been developed...Ch. 7 - Prob. 38OQCh. 7 - For each term in the first column, find the...Ch. 7 - Prob. 40AOQCh. 7 - Prob. 40BOQCh. 7 - Prob. 40COQCh. 7 - Prob. 40DOQCh. 7 - Prob. 40EOQCh. 7 - Prob. 41PCh. 7 - Prob. 42PCh. 7 - Prob. 43PCh. 7 - Prob. 44PCh. 7 - Prob. 45ITC
Knowledge Booster
Similar questions
- Explain why a company would hire internal auditors if they already have an external auditor. Compare the differences between an external audit and an internal audit. Review what you have learned about compliance audits. Determine when an auditor would be hired to perform a compliance audit.arrow_forwardOperating system security involves policies, procedures, and controls that determine who can access the operating system. User access privileges are assigned to individuals and to entire workgroups authorized to use the system.The way access privileges are assigned influences system security. Priviliges should be carefully administered and closely monitored for compliance with organizational policy. Choose one of the options below, that is not a test of control of the audit objective relating to access privileges. a. Review employee records to determine whether users have formally acknowledged their responsibility to maintain the confidentiality of company data.b. Review the privileges of a selection of user groups and individuals to determine if their access rights are appropriate for their job descriptions and positions.c. The auditor should verify that individuals are granted access to data and programs based on their need to know.d. Review the account lockout policy and procedures…arrow_forwardAuditors are required to assess any ethical threats before accepting clients and must either reject the appointment or mitigate the threats through measures put in place.Explain in detail these ethical threats and what appropriate measures that can be put in place to mitigate these threats.arrow_forward
- In making client acceptance and continuance decisions, the auditor will perform various procedures in assessing the client. Which of these would most likely not be one of those procedures? a. obtain background checks on management to assess management integrity b. review regulatory filings and examination reports c. analyze client financial statements and compare to industry metrics d. submit management to a lie detector testarrow_forwardThe purpose of the requirement in having communication between the predecessor and successor auditors is to: * Allow the predecessor to disclose O information, which would otherwise be confidential. Help the successor auditor to evaluate whether to accept the engagement. Ensure the predecessor collects all O unpaid fees prior to a change in auditor. Help the client by facilitating the change of auditors.arrow_forwardIs it allowed to send copies of the auditor's earlier paperwork to the client? If yes, are there any special criteria that auditors should review prior to delivering the client's documentation? At least three things should be mentioned.arrow_forward
- A moral or legal obligation to ensure the safety or well-being of others Could be defined as duty of care. An auditor's duty of care to a client would most likely be breached if the auditor failed to: Select one: a.comply with the Cooperation Act 2001 & all relevant auditing standards. b. Resolve their staffing issues. c. conduct the audit for the cheapest price. d.Prevent & detect earnings of management.arrow_forwardAn auditor is likely to use procedures to support the operating effectiveness of internal controls. Which of the following would generally not be used ? Select one : O a. Re -perform client procedures O b. Examine documents , records, and reports O c. Make inquiries of appropriate client personnel O d. Analytical proceduresarrow_forwardWhich of the following services is not considered to be a hosting service and, as such, will not impair independence if performed for an attest client? Acting as the sole host of a financial or non-financial information system of an attest client Having possession of a depreciation schedule prepared by the member, provided the deprecation schedule and calcu- lation are given to the attest client so that attest client's books and records are complete. Providing electronic security or back-up services for an attest client's data or records! All of the above are not considered to be a hosting service.arrow_forward
- Assume Ethan sets a meeting with Vick in two days to follow-up on his request. Vick has decided not to be part of the cover-up. Use the GVV framework to help Vick prepare for the meeting. Consider the following: What should Vick say to counteract Ethan's request? How might Vick's intended action affect the company and the external auditors? Who can Vick go to for support?arrow_forwardObtaining an understanding of the internal control structure is required for first time audit client, but not necessary for recurring clients. TRUE OR FALSE? WHY?arrow_forwardAs the audit associate, you were asked by the senior associate to check the completeness of confirmation letters. Upon your review, there is a supplier that has not yet given their reply. What alternative audit procedure would most likely be performed by the audit associate, assuming the audit is at its wrap-up stage? Group of answer choices A. Vouch subsequent payments B. Review the invoice register until audit report date C. Send another confirmation letter D. Perform analytical proceduresarrow_forward
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