Which of the following auditor concerns most likely

Which of the following auditor concerns most likely. There is substantial risk of management intentionally manipulating accounting records. Scope limitation involving a recorded uncertainty. C) Procedures requiring separation of duties are subject to management override. Positive comments about the company from industry analysts. Procedures requiring separation of duties are subject to Study with Quizlet and memorize flashcards containing terms like Auditors are especially concerned with three aspects of internal control for the sales and collection cycle. Confirmation with outside parties. Upon receiving checks from customers by mail, an employee prepares a duplicate listing of checks received. Recurring operating losses that may indicate going concern problems. Study with Quizlet and memorize flashcards containing terms like 16. D. D) All liabilities are ‘contingencies’. B) The CPA lacks a thorough understanding of the prospective client's operations and industry. 8. Obtaining a written representation letter from the client's management. The entity has no formal written code of conduct. c. - Obtain an understanding of the client's internal control structure and give management a report about Study with Quizlet and memorize flashcards containing terms like Financial statement assertions include:, An internal auditor's work would most likely affect the nature, timing, and extent of an independent CPA's auditing procedures when the internal auditor's work relates to assertions about the:, While performing tests of details on client's investment transactions, the auditor's test starts Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted?, Which of the following explanations best describes why an auditor may decide to reduce tests of details for a particular audit objective?, During a financial statement Which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit cannot be conducted? A. Due to staffing issues, the audit Which of the following will an auditor most likely discuss with the former auditors of a potential client prior to acceptance? a. d. Recomputation of account balance amounts. Inquiring of the client's legal counsel concerning pending litigation. , Which of the following most likely would be the result Study with Quizlet and memorize flashcards containing terms like An auditor suspects that certain client employees are ordering merchandise for themselves over the Internet without recording the purchase or receipt of the merchandise. c) Procedures requiring separation of duties are subject to Which of the following procedures would an auditor most likely include in the initial planning of a financial statement audit? A. Corroborates other evidence already obtained through the client. Procedures requiring separation of duties are subject to management override. Management places substantial emphasis on meeting earnings Study with Quizlet and memorize flashcards containing terms like Which of the following is a substantive test that an auditor most likely would perform to verify the existence and valuation of recorded accounts payable?, Which of the following is not one of the four major cycles?, The essential advantages of a computer-assisted audit techniques (CAATs) package would not include the fact that Study with Quizlet and memorize flashcards containing terms like The auditor normally does not need to test the accuracy of classification of fixed assets recorded in prior period. The entity has no formal code of conduct. existence or occurrence. Inadequate disclosure of an uncertainty. Study with Quizlet and memorize flashcards containing terms like When an auditor issues an adverse opinion, which of the following should be included in the opinion paragraph? A. Several years ago, Conway, Inc. Significantly fewer responses to confirmation requests are received than expected. Management has imposed a restriction that the auditor believes will result in a qualified opinion. Obtain a sample of vendor invoices and recalculate the invoice amount. Which of the following audit procedures would least likely be performed by an auditor examining the mortgage balance? A. Examine the current year's canceled checks. Study with Quizlet and memorize flashcards containing terms like which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit cannot be conducted?, the understanding with the client regarding a financial statement audit generally includes which of the following?, prior to commencing fieldwork, an auditor usually discusses Study with Quizlet and memorize flashcards containing terms like Which of the following departments is most likely responsible for pay rate changes and changes in deductible amounts for employees? A) general accounting department B) human resources department C) treasurer D) controller, The computer file used for recording payroll transactions for each employee and maintaining total wages paid Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted?, When applying analytical procedures during an audit, which of the following is the best approach for developing expectations?, Which of the following explanations best Study with Quizlet and memorize flashcards containing terms like An auditor tests an entity's policy of obtaining credit approval before shipping goods to customers in support of management's assertion about account balances of: A. Study with Quizlet and memorize flashcards containing terms like Which of the following factors would most likely cause an auditor to use audit sampling versus audit data analytics? a) Relevant data are clean or can be cleaned up easily. C) adjusted trial balance. Insiders recently purchased additional shares of the entity's stock. A portion of supporting evidence stored at an offsite storage facility was destroyed by a hurricane. Compare subsequent bank statements with the accounts payable listing. The CPA lacks experience in the client's operations and industry. Inspect public records of lien Which of the following circumstances would most likely cause an auditor to suspect that material fraud exists in a client's financial statements? a. States the audit provides reasonable assurance that the statements are free of material misstatement C. Recent strong showing of the stock market. Inspect public records of lien Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted?, Which of the following procedures would an auditor most likely perform in planning a financial statement audit?, Which of the following is a substantive test that an Study with Quizlet and memorize flashcards containing terms like 1. 3 and a quick ratio of -0. AICP A FN: Risk Analysis. Upon receiving checks from customers by mail, an employee prepares a Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit cannot be performed? A) Management fails to modify prescribed internal controls for changes in information technology B) Internal control activities requiring segregation of duties are rarely Study with Quizlet and memorize flashcards containing terms like Which of the following would an auditor most likely use in determining the auditor's preliminary judgment about materiality? A. Study with Quizlet and memorize flashcards containing terms like B2: which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit cannot be conducted? A. Evaluate the reasonableness of management's allowance for doubtful accounts. 2. The CPA lacks experience in the client's operations and industry The entity has no formal written code of conduct. c) The audit population is large, and the auditor's tests are supported by reliable Study with Quizlet and memorize flashcards containing terms like Under the AICPA Code of Professional Conduct, which of the following tax compliance services performed for an attest client relating to the preparation of a tax return would impair a CPA's independence?, A registered public accounting firm is conducting an audit of an issuer. the auditor would likely send an audit inquiry letter to the client's attorney regarding all of the following, except:, For which of the following responses in a legal letter would an auditor most likely qualify the audit opinion for a scope limitation Study with Quizlet and memorize flashcards containing terms like which of the following auditor concerns most likely could be so serious that the auditor would conclude that the financial statement audit cannot be conducted, before accepting an engagement to audit a new client, an auditor is required to, which of the following steps should an auditor perform first to determine the existence of Which of the following auditor concerns usually is so serious that the auditor might conclude that a financial statement audit cannot be conducted? Management fails to modify prescribed controls for changes in conditions. , The auditor is studying a ratio of accounts payable turnover in days. voucher. rights and obligations. B) The integrity of entity's management is suspect. Jul 31, 2024 · Study with Quizlet and memorize flashcards containing terms like The internal document commonly used to record a credit purchase in the purchases journal is a: A. client refuses to take the remedial steps deemed necessary by the auditors. The integrity of the entity's management is suspect. vendor's invoice. Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted? A) The entity has no formal written code of conduct. When vendors' invoices arrive, one of the employees approves the invoices for payment. The results of the internal control questionnaire. a. Which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit cannot be conducted? a. All of the above must be discussed. A current ratio of 1. Management's failure to renegotiate unfavorable long-term purchase commitments. Management Study with Quizlet and memorize flashcards containing terms like Which of the following would cause an auditor of an entity's financial statements to issue either a qualified opinion or a disclaimer of opinion? a. Which of the following indicates a potential risk of unrecorded liabilities? A. purchase requisition. Obtain the accounts payable listing and agree to subsequent cash payments. B) Long-term debt. b) purchases on account, purchase returns, and cash receipts. Management fails to modify prescribed controls for changes in conditions. completeness. Choose the best. d) purchases on account, purchase returns, and cash disbursements Which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit cannot be performed? a. C. the integrity of the entity's management is suspect C. Which of the following is an example of a contingency? A) Accounts payable. Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted? a. If they are the continuing auditor because a) they are rarely material to the audit B) there were only contain misstatements C) they are verified and previous audits D) they don't affect the balance sheet, The The auditor is most likely to withdraw from the engagement when the: A. Integrity of management. Internal control activities requiring segregation of duties are rarely monitored by management. management's responsibility to guarantee that there are no material misstatements due to fraud b. Property and equipment are usually sold at a loss before being fully depreciated. D Study with Quizlet and memorize flashcards containing terms like 6) Which of the following situations would be most likely to cause a CPA to not accept a new audit engagement? A) The prospective client has fired its prior auditor. Observation of client personnel. The integrity of the entity’s management is suspect. Which of the following auditor concerns most likely could be so serious that the auditor that the auditor concludes that a financial statement audit cannot be conducted? A. After the invoices are paid, the employee destroys the invoices and the Study with Quizlet and memorize flashcards containing terms like Which of the following ratios would an engagement partner most likely consider in the overall review stage of an audit?, The element of the audit planning process most likely to be agreed upon with the client before implementation of the audit strategy is the determination of the, Which of the following factors would most likely Question: 29. States audit provides reasonable Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit cannot be conducted?, The understanding with the client regarding a financial statement audit generally includes which of the following matters?, Prior to commencing fieldwork, an auditor usually Which of the following procedures would an auditor most likely perform in planning a financial statement audit? a. b) Evidence to support the audit test is not available in electronic form. Searching for unauthorized transactions that may aid in detecting unrecorded liabilities. Management's refusal to sign a management representation letter. Comparing the financial statements to anticipated results. In which of the following instances would an auditor most likely issue a standard unqualified opinion WITHOUT an explanatory paragraph? a. The auditor's adherence to a system of quality control. C) Procedures requiring separation of duties are subject to Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted? A) The entity has no formal written code of conduct. Review the mortgage amortization schedule. 2: An auditor would be most likely to identify a contingent liability by obtaining a(n) A) Accounts payable confirmation. A decreasing unemployment rate in the Study with Quizlet and memorize flashcards containing terms like 16. Procedures requiring separation of duties are subject to management Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely would be so serious that the auditor would conclude that a financial statement audit cannot be performed? a. A reference Question: Which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit CANNOT be performed? Question 23 options: A Internal control activities requiring segregation of duties are rarely monitored by management Which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit cannot be performed? a. C) Product warranty. the entity has no formal written code of conduct B. Which of the following is not one of their major concerns? A) Controls over cutoff B) Controls that prevent or detect embezzlements C) Controls over sales discounts D) Controls related to the allowance for uncollectible The auditors are planning an audit engagement for a new client. States the auditor's responsibility to express an opinion on the financial statements B. accuracy, valuation and allocation. Unreasonable accounting estimates Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted?, Before accepting an engagement to audit a new client, an auditor is required to:, When applying analytical procedures during an audit, which of the following is the best Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted? A) The entity has no formal written code of conduct. Turnover of senior accounting personnel is low. D) general ledger balances. Management fails to modify prescribed internal controls for changes in information technology. Study with Quizlet and memorize flashcards containing terms like 1. A portion of supporting evidence stored at an offsite storage Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted? a) The entity has no formal written code of conduct. Study with Quizlet and memorize flashcards containing terms like In an integrated audit of an issuer, which of the following most likely would be considered an entity-level control? a. B. The use of inappropriate accounting principles. purchase order. The anticipated sample size of the planned substantive tests. There is substantial doubt about the entity’s ability to continue as a going-concern. , An auditor uses Study with Quizlet and memorize flashcards containing terms like The purchasing process normally includes all of the following transactions: a) purchases, inventory transactions, and cash receipts. C) The CPA is unable to review the predecessor auditor's working An auditor is required to establish an understanding with a client regarding the responsibilities for each engagement. response. The financial statement effects of the departure from GAAP. Accounts Study with Quizlet and memorize flashcards containing terms like A letter from the client's attorney: Multiple Choice Is always required if the auditor is to express an opinion. Which of the following is not an element of the auditor's responsibility of the auditor's report? A. . Examining documents to detect noncompliance with laws and regulations having a material effect on the financial statements. The contents of the Study with Quizlet and memorize flashcards containing terms like Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. Evidence of a lack of Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely would be so serious that the auditor would conclude that a financial statement audit cannot be performed? a. - Produce a company's annual financial statements and notes. This understanding generally includes: a. Is the primary source of evidence an auditor obtains about litigation, claims, and assessments The following questions concern auditor responsibilities related to the assessment of risks of material misstatement. , (Chap 3) Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted? A) The integrity of entity's management is suspect. Which of the following would be the most useful source of information for the auditors when they are trying to obtain a general understanding of audit problems that could be encountered? Which of the following characteristics most likely would heighten an auditor's concern about the risk of intentional manipulation of financial statements? a. C) An auditor's engagement letter most likely will include a) Managements Acknowledgement of its responsibility for maintaining effective internal control b) The auditors preliminary assessment of the risk factors relating to misstatements arising from fraudulent financial reporting c) A request for permission to contact the client's lawyer for assistance in identifying litigation, claims, and Study with Quizlet and memorize flashcards containing terms like 1) Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted? A) The entity has no formal written code of conduct. Study with Quizlet and memorize flashcards containing terms like Which of the following would be most likely to cause an auditor to have substantial doubt regarding a company's ability to continue as a going concern? A. , secured a conventional real estate mortgage loan. Is obtained by the client on behalf of the auditor. B) Bank confirmation of the entity’s cash balance. b. Negative cash flow from investing activities. AACSB: Analytic. C) Procedures requiring separation of duties are subject to Study with Quizlet and memorize flashcards containing terms like In an integrated audit of an issuer, which of the following most likely would be considered an entity-level control? a. b) The integrity of entity's management is suspect. auditor cannot reasonably estimate the effect of the illegal act on the financial statements. c) purchases of inventory, plant and equipment, and depreciation. A statement that indicates that the financial statements are fairly stated except for a reason that is described in the separate paragraph. Procedures requiring segregation of duties are subjec to management An auditor searching for unrecorded payables most likely would: Answer. procedures requiring segregation of duties are subject to Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely would be so serious that the auditor would conclude that a financial statement audit cannot be performed? a. B) original source documents. C) Procedures requiring separation of duties are subject to Study with Quizlet and memorize flashcards containing terms like An auditor becomes aware that a client has been threatened with litigation. auditor is precluded from obtaining sufficient competent evidence about the illegal act. Study with Quizlet and memorize flashcards containing terms like Which of the following most likely would be considered a mitigating condition concerning an entity's ability to continue as a going concern? a. Which of the following services may the auditor Study with Quizlet and memorize flashcards containing terms like Which of the following best describes the primary role and responsibility of independent external auditor? - Provide business consulting advice to audit clients. An aging schedule that is prepared by the accounts receivable department. Reasons for changing audit firms. Which of the following procedures would a CPA most likely perform during the planning stage of the audit? 1. The entity's annualized interim financial statements. Management disclosures are missing or inadequate. Disagreements with management regarding accounting principles. The business of the client is unfamiliar to the auditors. The integrity of entity's management is suspect. An aging schedule that is prepared by the Jul 31, 2024 · Study with Quizlet and memorize flashcards containing terms like Which of the following audit techniques most likely would provide an auditor with the most assurance about the effectiveness of the operation of an internal control procedure? Inquiry of client personnel. the auditor's responsibility to plan and perform the audit to provide reasonable, but not absolute, assurance of detecting material Study with Quizlet and memorize flashcards containing terms like The auditor is least likely to learn of retirement of equipment through which of the following?, In testing for unrecorded retirements of equipment, an auditor most likely would:, The auditor may conclude that depreciation charges are insufficient by noting: and more. Plans to increase ownership equity. iphzvlq uqkud yxin icnbdy ngushcw mtb fymfu fzmfxf qrmkki chkba