Questions from Auditing and Assurance

Q: Define inherent risk. Can the auditors reduce inherent risk by performing

Define inherent risk. Can the auditors reduce inherent risk by performing audit procedures?

Q: Explain the meaning of the term permanent file as used in connection

Explain the meaning of the term permanent file as used in connection with audit working papers. What kinds of information are usually included in the permanent file?

Q: List several rules to be observed in the preparation of working papers

List several rules to be observed in the preparation of working papers that reflect current professional practice.

Q: Describe the relationship between detection risk and audit risk.

Describe the relationship between detection risk and audit risk.

Q: I have finished my testing of footings of the cash journals,”

I have finished my testing of footings of the cash journals,” said the assistant auditor to the senior auditor. “Shall I state in the working papers the periods for which I verified footings, or shoul...

Q: Distinguish among routine, non-routine, and estimation transactions.

Distinguish among routine, non-routine, and estimation transactions. Include an example of each.

Q: Distinguish between the component of audit risk that the auditors gather evidence

Distinguish between the component of audit risk that the auditors gather evidence to assess versus the component of audit risk that they collect evidence to restrict.

Q: Contrast the objectives of auditing at the beginning of this century with

Contrast the objectives of auditing at the beginning of this century with the objectives of auditing today.

Q: In a conversation with you, Mark Rogers, CPA, claims

In a conversation with you, Mark Rogers, CPA, claims that both the sufficiency and the appropriateness of audit evidence are a matter of judgment in every audit. Do you agree? Explain.

Q: The best means of verification of cash, inventory, office equipment

The best means of verification of cash, inventory, office equipment, and nearly all other assets is a physical count of the units; only a physical count gives the auditors complete assurance as to the...