Questions from Auditing and Assurance

Q: Why is it important for the auditor to consider the risk of

Why is it important for the auditor to consider the risk of material misstatement at the overall financial statement level?

Q: Auditing standards require that the engagement team members engage in discussion about

Auditing standards require that the engagement team members engage in discussion about the risk of material misstatement. Describe the nature of this required discussion and who should be involved.

Q: Auditing standards require that the engagement team members engage in discussion about

Auditing standards require that the engagement team members engage in discussion about the susceptibility of the financial statements to the risk of fraud. How does this discussion relate to the requi...

Q: Describe examples of characteristics of transactions and balances that might cause an

Describe examples of characteristics of transactions and balances that might cause an auditor to determine that a risk of material misstatement is a significant risk.

Q: Explain why liquidity activity ratios ratios are useful to auditors.

Explain why liquidity activity ratios ratios are useful to auditors.

Q: The following is an example of a CPA firm’s quality control procedure

The following is an example of a CPA firm’s quality control procedure requirement: “Any person being considered for employment by the firm must have completed a basic auditing course and have been int...

Q: Describe the types of information that should be included in the auditor’s

Describe the types of information that should be included in the auditor’s working papers as evidence of the auditor’s fraud assessment procedures.

Q: Identify the management assertion and general balance-related audit objective for

Identify the management assertion and general balance-related audit objective for the specific balance-related audit objective: Read the fixed asset footnote disclosure to determine that the types of...

Q: Assume that you are concerned that your client has recorded revenues that

Assume that you are concerned that your client has recorded revenues that did not occur. What audit objective would you assess as having a high risk of material misstatement?

Q: In addition to inquiring of individuals among management who are involved in

In addition to inquiring of individuals among management who are involved in financial reporting positions, such as the CFO and controller, which additional individuals should you consider making inqu...