Questions from Auditing and Assurance

Q: Distinguish between independence in fact and independence in appearance. Can auditors

Distinguish between independence in fact and independence in appearance. Can auditors be independent in fact yet not be perceived to be independent in appearance?

Q: Indicate whether each of the following audit procedures is a test of

Indicate whether each of the following audit procedures is a test of controls, a substantive test, or a dual-purpose test. Next, indicate the financial statement assertion most closely related to each...

Q: Define professional skepticism and professional judgment. During what stages of the

Define professional skepticism and professional judgment. During what stages of the audit are auditors required to demonstrate these characteristics?

Q: Which of the following is an advantage of computer-assisted audit

Which of the following is an advantage of computer-assisted audit techniques (CAATs)? a. All the CAATs programs are written in one computer language. b. The software can be used for audits of clients...

Q: Firms auditing public entities are required to have periodic inspections conducted by

Firms auditing public entities are required to have periodic inspections conducted by the PCAOB. Required: a. What are the major characteristics of PCAOB inspections? b. What types of firms typically...

Q: A primary advantage of using CAATs in the audit of an advanced

A primary advantage of using CAATs in the audit of an advanced computerized system is that it enables the auditor to a. Substantiate the accuracy of data through self-checking digits and hash totals....

Q: An audit engagement letter should normally include which of the following matters

An audit engagement letter should normally include which of the following matters of agreement between the auditor and the client? a. Schedules and analyses to be prepared by the client’s employees. b...

Q: When auditing Vandalay Jewelry, Costanza, CPA, was not familiar

When auditing Vandalay Jewelry, Costanza, CPA, was not familiar with the quality and cut of the company’s precious jewel inventory. To address this shortcoming, Costanza hired Benes, an expert in jewe...

Q: Which of the following engagement planning procedures would most likely assist the

Which of the following engagement planning procedures would most likely assist the auditor in identifying related-party transactions before the balance-sheet date? a. Interviewing internal auditors ab...

Q: Which of the following communications is most likely to be written before

Which of the following communications is most likely to be written before the balance-sheet date? a. A report to the audit committee on the results of testing of internal control over cash receipts. b...