Questions from Auditing and Assurance

Q: Audit standards distinguish auditors’ responsibility for planning procedures for detecting noncompliance with

Audit standards distinguish auditors’ responsibility for planning procedures for detecting noncompliance with laws and regulations having a direct effect on financial statements versus planning proced...

Q: Weyman Z. Wannamaker is the chief financial officer of Cogburn Company

Weyman Z. Wannamaker is the chief financial officer of Cogburn Company. He prides himself on being able to manage the company’s cash resources to minimize the interest expense. Conse...

Q: Johnson & Company, CPAs, audited Guaranteed Savings & Loan Company

Johnson & Company, CPAs, audited Guaranteed Savings & Loan Company. M. Johnson had the assignment of evaluating the collectability of real estate loans. Johnson was working on two particular loans: (1...

Q: An auditor must identify the relevant assertions about each significant financial statement

An auditor must identify the relevant assertions about each significant financial statement account and disclosure and then gather evidence to conclude whether a material misstatement exists for each...

Q: Oak Industries, a manufacturer of radio and cable TV equipment and

Oak Industries, a manufacturer of radio and cable TV equipment and an operator of subscription TV systems, had a multitude of problems. Subscription services in a market area, or which $12 million of...

Q: An important principle for auditors is the need to maintain an appropriate

An important principle for auditors is the need to maintain an appropriate level of professional skepticism. Required: a. Define professional skepticism. b. During which stages of the audit are audit...

Q: Horizontal analysis refers to changes of financial statement numbers and ratios across

Horizontal analysis refers to changes of financial statement numbers and ratios across two or more years. Vertical analysis refers to financial statement amounts expressed each year as proportions of...

Q: Which of the following is a specific audit procedure that would be

Which of the following is a specific audit procedure that would be completed in response to a particular fraud risk in an account balance or class of transactions? a. Exercising more professional skep...

Q: Which of the following relationships between types of analytical procedures and sources

Which of the following relationships between types of analytical procedures and sources of information are most logical?

Q: Analytical procedures can be used in which of the following ways?

Analytical procedures can be used in which of the following ways? a. As a means of overall review near the end of the audit. b. As “attention-directing” methods when planning an audit at the beginning...