Questions from Auditing and Assurance

Q: The objective in an auditor’s review of credit ratings of a client’s

The objective in an auditor’s review of credit ratings of a client’s customers is to obtain evidence related to management’s assertion about a. Completeness. b. Existence. c. Valuation and allocation....

Q: Identify three different categories of fraud risk factors. Next, for

Identify three different categories of fraud risk factors. Next, for each category, what are some of the conditions that can help contribute to a higher likelihood of financial statement fraud?

Q: Kramer, CPA, consulted an independent appraiser regarding the valuation of

Kramer, CPA, consulted an independent appraiser regarding the valuation of fine art for a not-for-profit museum. Consultation with the appraiser in this case would a. Be considered as exercising prope...

Q: Jones, CPA, is planning the audit of Rhonda’s Company.

Jones, CPA, is planning the audit of Rhonda’s Company. Rhonda verbally asserts to Jones that all expenses for the year have been recorded in the accounts. Rhonda’s representation in this regard a. Is...

Q: Identify the four cycles featured in Dunder-Mifflin’s accounting system featured

Identify the four cycles featured in Dunder-Mifflin’s accounting system featured in Exhibit 3.3A. Next, list the financial statement accounts that can be identified within each of the cycles identifie...

Q: The risk to investors that a company’s financial statements may be materially

The risk to investors that a company’s financial statements may be materially misleading is called a. Client acceptance risk. b. Information risk. c. Moral hazard. d. Business risk.

Q: When auditing merchandise inventory at year-end, the auditor performs

When auditing merchandise inventory at year-end, the auditor performs audit procedures to ensure that all goods purchased before year-end are received before the physical inventory count. This audit p...

Q: When auditing merchandise inventory at year-end, the auditor performs

When auditing merchandise inventory at year-end, the auditor performs audit procedures to obtain evidence that no goods held on consignment are included in the client’s ending inventory balance. This...

Q: When an auditor reviews additions to the equipment (fixed asset)

When an auditor reviews additions to the equipment (fixed asset) account to make sure that fixed assets are not overstated, she wants to obtain evidence as to management’s assertion regarding a. Compl...

Q: The 12 partners of a regional public accounting firm met in special

The 12 partners of a regional public accounting firm met in special session to discuss audit engagement efficiency. Jones spoke up, saying, “We all certainly appreciate the firm wide policies set up b...