Questions from Auditing and Assurance

Q: Following are six situations that involve the audit risk model as it

Following are six situations that involve the audit risk model as it is used for planning audit evidence requirements in the audit of inventory. Required a. Explain what low, medium, and high mean for...

Q: What is the purpose of risk assessment procedures and how do they

What is the purpose of risk assessment procedures and how do they differ from the four other types of audit tests?

Q: Explain why auditors usually emphasize the detection of fraud in the audit

Explain why auditors usually emphasize the detection of fraud in the audit of cash receipts. Is this consistent or inconsistent with the auditor's responsibility in the audit? Explain.

Q: The following are independent internal controls commonly found in the acquisition and

The following are independent internal controls commonly found in the acquisition and payment cycle. Each control is to be considered independently. 1. At the end of each month, an accounting clerk ac...

Q: Below are ten independent risk factors: 1. The client

Below are ten independent risk factors: 1. The client lacks sufficient working capital to continue operations. 2. The client fails to detect employee theft of inventory from the warehouse because ther...

Q: Distinguish the auditor's responsibility for testing controls in an integrated audit of

Distinguish the auditor's responsibility for testing controls in an integrated audit of a public company from the responsibility to test controls in an audit of a nonpublic company.

Q: Using the audit risk model, state the effect on control risk

Using the audit risk model, state the effect on control risk, inherent risk, acceptable audit risk, and planned evidence for each of the following independent events. In each of the events a to j, cir...

Q: Whitehead, CPA, is planning the audit of a newly obtained

Whitehead, CPA, is planning the audit of a newly obtained client, Henderson Energy Corporation, for the year ended December 31, 2011. Henderson Energy is regulated by the state utility commission and...

Q: The following questions deal with audit risk and evidence. Choose the

The following questions deal with audit risk and evidence. Choose the best response. a. As the acceptable level of detection risk decreases, an auditor may (1) Reduce substantive testing by relying o...

Q: The division of the following duties is meant to provide the best

The division of the following duties is meant to provide the best possible controls for the Meridian Paint Company, a small wholesale store: †1. Approve credit for customers included in the customer c...