Questions from General Auditing

Q: Ajax Ltd. is a listed company and a new client of

Ajax Ltd. is a listed company and a new client of Delaware Partners, a medium-sized audit firm. Jeffrey Nycz is the engagement partner on the audit and has asked the members of the audit team to start...

Q: What is “modified wording” in an audit report? What

What is “modified wording” in an audit report? What are the different types of modified wording and when are they used?

Q: Explain the difference between limitation of scope and disagreement with those charged

Explain the difference between limitation of scope and disagreement with those charged with governance.

Q: CAS 260 stresses the importance of communication with “those charged with

CAS 260 stresses the importance of communication with “those charged with governance.” Who are these people and why is it important that the auditor communicate with them (and not others)?

Q: What does “assurance” mean in the financial reporting context?

What does “assurance” mean in the financial reporting context? What qualities must an “assurer” have in order for you to feel that their statement has high credibility?

Q: Overhead is to be absorbed into the cost of inventory on the

Overhead is to be absorbed into the cost of inventory on the basis of the normal level of activity. What evidence is available to the auditor in verifying management’s determination of that level of a...

Q: There are several categories of control activities listed in this chapter.

There are several categories of control activities listed in this chapter. They include performance reviews, authorization controls, account reconciliations, physical controls, and segregation of duti...

Q: Patrizia Montani is considering the sample size needed for a selection of

Patrizia Montani is considering the sample size needed for a selection of sales invoices relating to the test of internal controls of the Caistor Company. She is determining the acceptable risk and de...

Q: Required: From the list below, identify what you would

Required: From the list below, identify what you would consider as a. an incentive for fraud, and b. an opportunity for fraud. 1. college or university tuition 2. gambling debts 3. the fact that nobod...

Q: Audit opinions Moderate LO 1, 5 Required What type

Audit opinions Moderate LO 1, 5 Required What type of audit report would be appropriate in each of the following scenarios? Explain. a. There is uncertainty relating to a pending exceptional litigatio...