Questions from Auditing and Assurance

Q: List the nine balance-related audit objectives in the verification of

List the nine balance-related audit objectives in the verification of the ending balance in inventory and provide one useful audit procedure for each of the objectives.

Q: What are the three categories of members under the AICPA Code of

What are the three categories of members under the AICPA Code of Professional Conduct?

Q: Explain the relationship between the occurrence transaction-related audit objective and

Explain the relationship between the occurrence transaction-related audit objective and the existence and completeness balance-related audit objectives.

Q: How might the performance of test of controls provide evidence related to

How might the performance of test of controls provide evidence related to the presentation transaction-related audit objective?

Q: Diane Smith, CPA, performed tests of controls and substantive tests

Diane Smith, CPA, performed tests of controls and substantive tests of transactions for sales for the month of March in an audit of the financial statements for the year ended December 31, 2019. Based...

Q: Assume a company with the following balance sheet accounts: You

Assume a company with the following balance sheet accounts: You are concerned only about overstatements of owner’s equity. Set performance materiality for the three relevant accounts...

Q: Explain why there is an inverse relationship between planned detection risk and

Explain why there is an inverse relationship between planned detection risk and the amount of evidence an auditor collects for a specific audit objective.

Q: Assume materiality for the financial statements as a whole is $100

Assume materiality for the financial statements as a whole is $100,000 and performance materiality for accounts receivable is set at $40,000. If the auditor finds one receivable that is overstated by...

Q: Explain audit services, attestation services, and assurance services, and

Explain audit services, attestation services, and assurance services, and give examples of each.

Q: Explain how audit risk and materiality are related and why they need

Explain how audit risk and materiality are related and why they need to be considered together in planning an audit.