Which of the following procedures is not required to be performed by the auditor

Which of the following procedures is not required to be performed by the auditor. The accountant need not obtain an Study with Quizlet and memorize flashcards containing terms like A deficiency that implies that there is a reasonable possibility of misstatement in the financial statements that is significant but not material is A significant deficiency. 13 If the auditor concludes, on the basis of the procedures performed, that the supplementary information is materially misstated in relation to the finan-cial statements as a whole, the auditor should discuss the matter with man- Performing procedures required by section 220 from the results of audit procedures,the auditor may to many engagements. End 1 day ago · a. Date of the auditor's report. Which of the statements is correct? a. ) No, Yes, Yes, Which of the Study with Quizlet and memorize flashcards containing terms like Financial statement assertions are established for classes of transactions: A. Analytical procedures are required during the planning phase to assist the auditor in determining the nature, extent, and timing of work to be performed. Both I and II. tests of controls 3. They are not required to be performed on all audit engagements b. Monday's controller or CFO. Factors to be considered in establishing preliminary judgments about Study with Quizlet and memorize flashcards containing terms like Which of the following best describes the primary role and responsibility of independent external auditor? - Provide business consulting advice to audit clients. B. 3 days ago · Which of the following statements is true regarding this service audit report? A) It should include an opinion. communicating internal control deficiencies. Performing analytical procedures. After an audit report is issued, an auditor discovers that an important audit procedure was not performed. . Study with Quizlet and memorize flashcards containing terms like Which of the following statements concerning control risk is correct? A. Significant unusual transactions d. The standard specifies the following areas as required areas of contact: Communication of the financial information on which the component auditor has been requested to perform audit procedures; Whether the component auditor has performed the work requested by the group auditor; Compliance with relevant ethical requirements by the component auditor Study with Quizlet and memorize flashcards containing terms like Which of the following statements about analytical procedures is true? A Analytical procedures may be omitted entirely for some financial statement audits. C) The client auditor need not inquire about the service auditor's professional reputation. substantive tests of transactions 4. The chair of Monday's board of directors. II only. Disclosures D. Operational Audits C. Accuracy B. Shipping documents (bills of lading) file. Internal To enable an auditor to state whether, on the basis of procedures which do not provide all the evidence that would be required in an audit, anything has come to the auditor's attention that causes the auditor to believe that the financial statements are not prepared, in all material respects, in accordance with generally accepted accounting 3 days ago · Study with Quizlet and memorize flashcards containing terms like An auditor would express an unmodified opinion with an emphasis-of-matter paragraph added to the report for: -A justified change in accounting principle. Omission of note disclosures is unacceptable. This understanding generally includes: A. A flowchart depicting the segregation of duties and authorization of transactions is required. Roll-forward work, Which of the following statements is true with respect to written representations? Multiple Choice Written . Study with Quizlet and memorize flashcards containing terms like Which of the following procedures would an accountant least likely perform during an engagement to review the financial statements of a nonissuer? A. , Collectively, procedures performed to obtain an understanding of the entity and its environment, including internal controls, represent the auditor's: A) audit strategy. C Analytical procedures usually are effective and efficient for tests of Analytical procedures: A) are not a type of audit evidence. 3 days ago · Study with Quizlet and memorize flashcards containing terms like A user auditor of a nonissuer should perform which of the following procedures to obtain audit evidence related to the operating effectiveness of a service organization's controls when the risk assessment includes an expectation that the controls are operating effectively? Obtaining and reading a Type 2 report, if available Study with Quizlet and memorize flashcards containing terms like Which of the following is not among the risk assessment procedures that the auditor should perform in obtaining an understanding of the entity and its environment, including its internal control? a. Comparing the financial statements with anticipated results in budgets and forecasts. B) Most publicly-held companies. , Which of the following procedures is considered a test Ordinarily, it would be appropriate to design auditing procedures that would be expected to detect misstatements that aggregate a. Accounts receivable subsidiary ledger. Which of the following would be prohibited by auditing standards? None of the other actions are 1 day ago · Which of the following is a true statement regarding audit evidence and audit procedures? a. Perform inquiry and analytical procedures 3. , The search for unrecorded liabilities for a public company includes procedures usually performed through the: Day the audit report is issued. The CPA is unable to review the predecessor auditor's working papers due to a major fire that destroyed both hard and soft copy documentation. A1 For purposes of this standard, the terms listed below are defined as follows:. A2 Dual-purpose test - Substantive test of a transaction and a test of a control relevant to that transaction that are performed concurrently, e. Accounting records belong to the auditee. A flowchart or narrative of the information system relevant to financial reporting describing the recording and classification of transactions for financial reporting. Which three are substantive tests? 1. aicpa. The competency of the client's internal audit staff. Both B and C F. B The audit evidence gathered supports the auditor's conclusions. Governmental Auditors B. Account Balances and Disclosures B. The auditor may reduce the assessment of inherent risk to match the control risk, since they were assessed at the same level during the initial planning D. assessing the effectiveness of a client's internal controls. Which of the following procedures should be performed by the auditor prior to starting an initial audit? I. Financial Statement Audits B. Substantive analytical procedures are not required to be performed on all audit engagements. Inquiries of management and others within the entity. d. Communicate with the previous auditor, where there has been a change of auditors, in compliance with relevant ethical requirements. Vouching the acquisition of assets is an audit procedure that is often performed to establish the valuation of the assets. Neither, Which of the following is not an assertion relating to classes of transactions? A. Critical accounting practices and policies c. 3 days ago · The required procedures that an accountant must perform in an engagement to review the financial statements of a client for which the accountant does not perform audits include which of the following: I. Control risk The auditor is required to perform procedures designed to events that may require adjustment of, or disclosure in, the obtain sufficient appropriate audit evidence to identify al financial statements up to the A. Confirm litigation, claims, and assessments with third-party litigants. Investing. Statement 2: The auditor should develop and document an audit program setting out the nature, timing and extent of planned audit procedures required to implement the overall audit plan. If the results of substantive analytical procedures suggest that an account is materially correct, the evidence needed from tests of details can likely be reduced. - Produce a company's annual financial statements and notes. , a substantive test of sales transactions performed concurrently with a test of controls over those transactions. TRUE; Difficulty: Hard. The procedures followed by the auditor in evaluating evidence, In the Reauditing Financial The auditor may rely solely on analytical procedures, with no substantive procedures performed C. When control risk is at the maximum level, an auditor is not required to document the basis for that assessment. Assessing control risk and obtaining an understanding of an entity's internal control structure may be performed concurrently. Examples of procedures the auditor may perform are reviewing information in the investor’s files that relates to the investee such as investee minutes and budgets and cash flows information about the investee and making inquiries of investor management about the investee’s financial results. Management's responsibility for errors and the illegal activities of employees that may cause material misstatement. CPAs C. For example, discussing the nature and timing of detailed audit procedures with management may compromise the effectiveness of the audit by making the audit procedures too predictable. Audit documents may be regarded as a substitute for the D) 2, 3, and 4. $30,000, An auditor is required to establish an understanding with a client regarding the services to be performed for each engagement. ) Yes, Yes, No d. Post, the predecessor auditor. Significant accounting policies and practices b. The scope of the auditor's testing of internal controls. B) Analytical procedures that the auditor plans to perform. Although some of the following D The auditor should have appropriate proficiency to perform the audit. A. documentation of understanding of a client's internal controls. The auditor has a responsibility to design and perform audit procedures to obtain sufficient appropriate audit evidence. A documented audit plan describing the necessary procedures to be performed . The accountant expresses no assurance on the financial statements. Observation and inspection. Account Balances C. 1 day ago · Study with Quizlet and memorize flashcards containing terms like Which of the following statements best describes why an auditor would use only substantive procedures to evaluate specific relevant assertions and risks? Testing the operating effectiveness of the relevant controls would not be efficient. Customer purchase orders. An audit plan setting forth in detail Study with Quizlet and memorize flashcards containing terms like 1) Shown below (1 through 5) are the five types of tests which auditors use to determine whether financial statements are fairly stated. Inquiring of Study with Quizlet and memorize flashcards containing terms like statements are fairly stated. D. C) Indications of negative cash flows from operating activities. B) tests of controls. , he role of the registered independent auditing firm relative to its clients 36 Emphasis paragraphs are never required and are not a substitute for required critical audit matters described in paragraphs . Test of controls. , In Aug 21, 2024 · This amount should vary from the following production. Which of the following procedures is not performed as a part of planning an audit engagement? a. , An auditor most likely would make specific inquiries of the predecessor auditor regarding A. Study with Quizlet and memorize flashcards containing terms like To test the existence assertion for recorded receivables, an auditor would select a sample from the: A. D) Identification of working capital deficiencies. Obtaining evidence that the interim financial information agrees or reconciles with the accounting records. b. , Which of the following would not be considered further audit procedures? Study with Quizlet and memorize flashcards containing terms like Which of the following is a true statement about the required documentation in an audit performed in accordance with generally accepted auditing standards? a. In the test of controls, audit procedures are performed to obtain evidence about the effectiveness of the client’s internal control. Substantive analytical procedures would be performed after tests of details. Study with Quizlet and memorize flashcards containing terms like An audit team's responsibility would not include: Multiple Choice designing client's internal controls. Study with Quizlet and memorize flashcards containing terms like Which of the following is correct relating to compiled financial statements when third party reliance upon those statements is anticipated? A. $15,000 c. B Analytical procedures alone may provide the appropriate level of assurance for some assertions. If the results of substantive analytical procedures suggest that an account balance is materially correct, the auditor can reduce the evidence needed from tests of details. Regulatory Audits D. The auditor may reduce the amount of substantive procedures performed and more. Study with Quizlet and memorize flashcards containing terms like Which of the following is required documentation in an audit in accordance with generally accepted auditing standards? a. Sales orders file. , When a. -An unjustified change in accounting principles. $10,000 b. C. C) risk assessment procedures. Study with Quizlet and memorize flashcards containing terms like Following are several statements regarding accounting records or audit documentation. C) All privately-held companies. Study with Quizlet and memorize flashcards containing terms like The requirements of Section 404 of the Sarbanes-Oxley Act of 2002 apply to A) All companies that are subject to an independent audit. B) are not required during the completion phase of the audit. Disagreements with management as to auditing procedures. , Which of the following is least likely to be typically considered to be an alternate Study with Quizlet and memorize flashcards containing terms like When auditing the statement of cash flows, which of the following would an auditor not expect to be a source of receipts and payments? Capitalization. Compliance Audits, 2. I only. Hill, the auditor. C) performed during the planning phase of the audit are used as a substantive test in support of account balances. The analytical procedures performed at this stage of the audit are not different to those performed at the planning stage – the auditor will perform ratio analysis, comparisons with prior period financial statements and other techniques to confirm that trends are as expected, and to highlight unusual 3 days ago · Study with Quizlet and memorize flashcards containing terms like When auditing an entity's financial statements in accordance with Government Auditing Standards (the "Yellow Book"), an auditor is required to report on: I. Appendix A - Definitions. Classification, Which of the following is not 3 days ago · A. Study with Quizlet and memorize flashcards containing terms like An auditor is required to establish an understanding in writing with a client regarding the services to be performed for each engagement. Neither I nor II. Which of the following types of audits is most likely to be conducted for the purpose of identifying areas for cost savings? A. If not matching, there are chances that management may not be correctly recognizing expenses promptly. A compilation report must be issued. Noteworthy accomplishments of the program. A material weakness. 3 days ago · Study with Quizlet and memorize flashcards containing terms like Auditors are required to communicate with the audit committee for all but which of the following: a. D) All companies with sales in excess of $500 million. Each page of the financial statements should have a 3 days ago · Study with Quizlet and memorize flashcards containing terms like Which of the following statements is correct concerning both an engagement to compile and an engagement to review a nonissuer's financial statements? A. Financial statement audits are required to be performed by: A. Analytical procedures help the auditor identify accounts and classes of transactions where misstatements are likely. Operations. None of the above and more. II. Designing an audit program d. The prospective client has fired its prior auditor. 25-21 B Which of the following procedures would most likely be performed during an engagement to compile the financial statements of a nonissuer? 1. D) performed in the completion phase serve as a final review for material misstatements or financial problems. A probable deficiency. Study with Quizlet and memorize flashcards containing terms like Analytical Procedures:, True or False: Substantive analytical procedures are required on every audit?, Which of the following statements are false regarding substantive analytical procedures? a. B) It provides the client auditor with a guarantee regarding whether the entity's control procedures have been placed in operation. org When discussing matters included in the overall audit strategy or audit plan, care is required in order not to compromise the effectiveness of the au-dit. Which of the following procedures is acceptable in this situation? a. Limitations of the engagement. The auditor need not have an understanding of the nature of the work to be performed by the specialist. Which of the following statements is/are correct? Statement 1: The overall audit plan and the audit program should not be revised during the course of the audit. c. See full list on us. The internal auditor already has tested the relevant controls and found them effective. - Obtain an understanding of the client's internal control structure and give management a report about A. Perform analytical procedures. a. Read the financial statements and consider whether they are appropriate in form and free from obvious material errors 2. The CPA lacks a thorough understanding of the prospective client's operations and industry. Which of the following matters does an auditor usually include in the engagement letter? A) Arrangements regarding fees and billing. 11–. The Which of the following procedures would normally be performed by the auditor when conducting tests of payroll transactions? A) Interview employees selected in a statistical sample of payroll transactions. Reviewing working papers of the prior year. The accountant should obtain a written management representation letter. Immediately notify known users of the omitted audit procedure. Inquiry is a type of audit procedure that typically does not require the auditor to perform additional procedures. The auditor's responsibility Study with Quizlet and memorize flashcards containing terms like Procedures used to allow auditors to extend their conclusions to the end of the year under audit are referred to as: Multiple Choice Interim testing. Documentation of an auditor's understanding of the entity's internal control system is not necessary. The auditor is required to perform substantive procedures to verify the specialist's assumptions and findings. tests of details of balances A Which of the following statements is true regarding planning analytical procedures for debt and equity? a. g. If an auditor decides to assess control risk as low based on IT application control procedures, which of the following would not be part of the auditor's strategy for testing controls? a) Testing the effectiveness of management review controls used to monitor the results of operations. The specialist need not agree to the auditor's use of the specialist's findings. Cost-benefit considerations are part of audit planning. No further action is necessary if the audit report can still be supported. If unusual or unexpected relationships are identified by planning analytical procedures, the auditor should stick with the original expectations of misstatements Which of the following is typically the auditors' initial procedure performed to identify litigation, claims, and assessments? A. 37 It is not appropriate for the auditor to use phrases such as "with the foregoing [following] explanation" in the opinion paragraph when an emphasis paragraph is included in the auditor's report. Which of the following matters is generally included in an auditor's engagement letter? A. C Most of the required procedures can be performed as interim work. Both A and B E. $20,000 d. , Audit plans should be designed so that A The auditor can make constructive suggestions to management. D) tests of transactions. tests of details of balances A) 1, 2, and 3 B) 3, 4, and 5 C) 2, 3, and 5 D) 2, 3, and 4, Collectively, procedures performed to obtain an Jul 30, 2024 · Study with Quizlet and memorize flashcards containing terms like 1. Analytical procedures. B) Trace number of hours worked as shown on payroll to time cards and time reports signed by the foreman. ) No, No, Yes c. Obtain an attorney letter from the entity's legal counsel. Financing. Audit procedures for obtaining audit evidence are usually performed in the audit evidence gathering stage that may include both test of controls and substantive procedures. 50 The auditor ordinarily need not modify his or her report on the audited financial statements to refer to his or her having performed a review in accordance with this section or to refer to the interim financial information accompanying the audited financial statements because the interim financial information has not been audited and is not Which of the following procedures should be performed by the auditor prior to starting an initial audit? I. Adequacy C. Because there are typically only a few stockholders' equity transactions, the auditor is not required to perform planning analytical procedures for stockholders' equity accounts. Observing the safeguards over access to and use of assets and records. Tests of controls. -A justified change in accounting estimate. substantive analytical procedures 5. Confirmation. 17. Cutoff D. Perform procedures regarding the acceptance of the client relationship and the specific audit engagement. Nature, Timing And Extent Of Audit Procedures. An insignificant deficiency. b) Testing the effectiveness of the application with test data. , Examples of entity-level controls include Management's risk assessment process 1 day ago · Study with Quizlet and memorize flashcards containing terms like Audit committee members need not be independent as long as they are financial experts, Analytical procedures are seldom used during the risk assessment stage of an audit engagement because they are substantive procedures, Preliminary arrangements with clients should be set forth in the management letter and more. risk assessment procedures 2. Study with Quizlet and memorize flashcards containing terms like Auditing standards require that the independent auditor's report shall contain either an expression of opinion regarding the financial statements, taken as a whole, or an assertion to the effect that an opinion cannot be expressed. A written engagement letter is required. ) Yes, No, No b. Let us explore the above factors related to the process of going concern audit procedures: #1 - Nature date on which the auditor completed the procedures required in paragraph . 07.