Questions from Auditing and Assurance

Q: Management fraud (e.g., fraudulent financial reporting) is

Management fraud (e.g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds (e.g., Enron and WorldCom) can have a significant effect on shareholders, em...

Q: Assume that your firm is considering accepting New Skin Pharma as a

Assume that your firm is considering accepting New Skin Pharma as a new audit client. New Skin is a start-up biotech firm that has publicly traded stock on NASDAQ. Your audit partner has asked you to...

Q: Which of the following concepts are pervasive in the application of auditing

Which of the following concepts are pervasive in the application of auditing standards? a. Internal control. b. Expected misstatement. c. Control risk. d. Materiality and audit risk.

Q: Management assertions about classes of transactions are a. Occurrence.

Management assertions about classes of transactions are a. Occurrence. b. Completeness. c. Authorization. d. Accuracy. e. Cutoff. f. Classification. g. Presentation. For each management assertion, ind...

Q: For each of the following specific audit procedures, indicate the type

For each of the following specific audit procedures, indicate the type of audit procedure it represents: (1) inspection of records or documents, (2) inspection of tangible assets, (3) observation, (4)...

Q: For each of the audit procedures listed in Problem 5-32

For each of the audit procedures listed in Problem 5-32, identify the category (assertions about classes of transactions and events or assertions about account balances) and the primary assertion bein...

Q: Evidence comes in various types and has different degrees of reliability.

Evidence comes in various types and has different degrees of reliability. Following are some statements that compare various types of evidence. a. A bank confirmation versus observation of the segrega...

Q: Inspection of records and documents relates to the auditor’s examination of entity

Inspection of records and documents relates to the auditor’s examination of entity accounting records and other information. One issue that affects the reliability of documentary evidence is whether t...

Q: The confirmation process is defined as the process of obtaining and evaluating

The confirmation process is defined as the process of obtaining and evaluating a direct communication from a third party in response to a request for information about a particular item affecting fina...

Q: Audit documentation is the auditor’s record of work performed and conclusions reached

Audit documentation is the auditor’s record of work performed and conclusions reached on an audit engagement. Required: a. What are the functions of audit documentation? b. List and describe the vari...