Questions from Auditing and Assurance

Q: When testing a company’s cost accounting system, the auditor uses procedures

When testing a company’s cost accounting system, the auditor uses procedures that are primarily designed to determine that a. Quantities on hand have been computed based on acceptable cost accounting...

Q: The auditor tests the quantity of materials charged to work-in

The auditor tests the quantity of materials charged to work-in-process by vouching these quantities to a. Cost ledgers. b. Perpetual inventory records. c. Receiving reports. d. Material requisitions....

Q: Follow the instructions preceding Problem 9.61. Write the audit

Follow the instructions preceding Problem 9.61. Write the audit approach section following the cases in the chapter. The following is an excerpt from an article, “Memory Chip Trader Gets 14 Years for...

Q: A major objective of written representations is to a. Shift

A major objective of written representations is to a. Shift responsibility for financial statements from the management to auditors. b. Provide a substitute source of audit evidence for substantive pr...

Q: Which of the following normally occurs earliest in the audit examination?

Which of the following normally occurs earliest in the audit examination? a. Discovery of an omitted audit procedure. b. Dual dating the auditor’s report on the entity’s financial statements for subse...

Q: Define group auditors and component auditors. What issues are introduced when

Define group auditors and component auditors. What issues are introduced when component auditors examine a division, subsidiary, or segment of group financial statements?

Q: What are the types of opinions and the conclusion of each type

What are the types of opinions and the conclusion of each type of opinion?

Q: Which of these persons generally does not participate in writing the management

Which of these persons generally does not participate in writing the management letter? a. Client’s outside attorneys. b. Client’s accounting and production managers. c. Public accounting firm’s audit...

Q: Explain the effect of pervasiveness on the auditors’ report when the entity

Explain the effect of pervasiveness on the auditors’ report when the entity uses an accounting method that departs from GAAP.

Q: What are the major differences in wording for qualified opinions and adverse

What are the major differences in wording for qualified opinions and adverse opinions issued as a result of departures from GAAP?