Questions from Auditing and Assurance

Q: Give three examples of qualitative factors that might affect the auditor’s choice

Give three examples of qualitative factors that might affect the auditor’s choice of the percentage to apply to the benchmark used to establish overall materiality.

Q: List four factors that would cause the auditor to use a lower

List four factors that would cause the auditor to use a lower percentage for establishing tolerable misstatement.

Q: Who is responsible for initiating the communication between the predecessor and successor

Who is responsible for initiating the communication between the predecessor and successor auditors? What type of information should be requested from the predecessor auditor?

Q: What is the purpose of an engagement letter? List the important

What is the purpose of an engagement letter? List the important information that the engagement letter should contain.

Q: What factors should an external auditor use to assess the objectivity and

What factors should an external auditor use to assess the objectivity and competence of internal auditors?

Q: What is an audit committee and what are its responsibilities?

What is an audit committee and what are its responsibilities?

Q: Which of the following characteristics most likely would heighten an auditor’s concern

Which of the following characteristics most likely would heighten an auditor’s concern about the risk of intentional manipulation of financial statements? a. Turnover of senior accounting personnel is...

Q: List the matters an auditor should consider when developing an audit plan

List the matters an auditor should consider when developing an audit plan.

Q: Distinguish between illegal acts that are “direct and material” and

Distinguish between illegal acts that are “direct and material” and those that are “material but indirect.” List five circumstances that may indicate that an illegal act has occurred.

Q: What are some of the sources of information that may be used

What are some of the sources of information that may be used to identify transactions with related parties?