Questions from Auditing and Assurance

Q: Many entities are subject to regulations by state and federal regulatory bodies

Many entities are subject to regulations by state and federal regulatory bodies. For example, the Environmental Protection Agency has a mission of protecting human health and the environment. What bus...

Q: Distinguish between factual, judgmental, and projected misstatements.

Distinguish between factual, judgmental, and projected misstatements.

Q: Distinguish between errors and fraud. Give three examples of each.

Distinguish between errors and fraud. Give three examples of each.

Q: Explain why the auditor divides the financial statements into components or segments

Explain why the auditor divides the financial statements into components or segments in order to test management’s assertions.

Q: Discuss the relative reliability of the different types of audit procedures.

Discuss the relative reliability of the different types of audit procedures.

Q: Consider the “assurance bucket” analogy. Why are some of

Consider the “assurance bucket” analogy. Why are some of the buckets larger than others for particular assertions or accounts?

Q: Why are indexing and cross-referencing important to the documentation of

Why are indexing and cross-referencing important to the documentation of audit working papers?

Q: When discussing the use of analytical procedures, what is meant by

When discussing the use of analytical procedures, what is meant by the “precision of the expectation”? In applying this notion to an analytical procedure, how might an auditor calculate a tolerable di...

Q: Auditing standards require auditors to make certain inquiries of management regarding fraud

Auditing standards require auditors to make certain inquiries of management regarding fraud. Which of the following inquiries is required? a. Whether management has ever intentionally violated the sec...

Q: Significant differences between the auditor’s expectation and the entity’s book value require

Significant differences between the auditor’s expectation and the entity’s book value require explanation through quantification, corroboration, and evaluation. Explain each of these terms.