B.Analytical procedures are powerful tools that arerequired to be used during the planning andtesting phases of the audit.C. Analytical procedures may be used to identifymisstatements in a client’s accounts.D.Analytical procedures are required to be usedduring the planning and completion phases of theaudit.45.Which of the following is not an information sourcefor developing analytical procedures used in theaudit? Show
Get answer to your question and much more 46.Which of the following results from analyticalprocedures might indicate obsolete inventory? Get answer to your question and much more 47.Auditors try to identify predictable relationships whenusing analytical procedures. Which of the followingaccounts would most likely yield the highest level ofevidence regarding relationships that involvetransactions? Get answer to your question and much more 78. Which of the following is most correct with respect to the use ofanalytical procedures? 79. One purpose of performing preliminary analytical procedures in theplanning phase of an audit is to help the auditor make a preliminaryassessment of control risk.
81.When are auditors likely to encounter judgment problems in the use ofanalytical procedures? 82.An auditor has accessed client business risk and the risk of materialmisstatements to the clients financial statements. These are done inorder to: 83.Analytical procedures: 84.Management is the primary source for identifying client business risks. 85.The most widely used profitability ratio is return on assets. 86. Which of the following is a correct statement regarding analyticalprocedures? 87. Which of the following statements isnot correct with respect toanalytical procedures? 88.Determining materiality requires professional judgment. 89.Auditors are responsible for determining whether financial statementsare materially misstated, so upon discovering a material misstatementthey must bring it to the attention of: 90.If an auditor establishes a relatively high level for materiality, then theauditor will: 91.The preliminary judgment about materiality and the amount of auditevidence accumulated are ________ related. Upgrade to remove ads Only ₩37,125/year
Terms in this set (42)A measure of how willing the auditor is to accept that the financial statements may be materially acceptable audit risk A measure of the auditor's assessment of
the likelihood that there are material misstatements in an inherent risk In what order should the following steps occur? B, A, D, C The auditor uses knowledge gained from the understanding of the client's business and industry to client business risk Initial audit planning involves four matters. Which of the following is not one of these? Request that bank balances be confirmed. Rodgers CPA
has requested permission to communicate with predecessor auditor in order to review integrity of management concerning possible accounting misstatements Which of the following is not correct regarding an auditor's decision that a
lower acceptable audit risk Less evidence is accumulated. If an auditor is requested to perform nonaudit services for a public company audit client, who is the client's audit committee Which of the following statements is true regarding
communications between predecessor and The predecessor's response can be limited to stating that no information will be provided. The purpose of an engagement letter is to: document the terms of the engagement. Written communication that the auditor will provide reasonable assurance for the detection of
fraud engagement letter. Which of the following normally signs the engagement letter for an audit of a private company? Management. The first standard of field work, which states that the work is to be adequately planned and that early appointment of the auditor is advantageous to the auditor and the client An engagement letter sent to a publicly held audit client usually would not include a: statement that management advisory services would be made available upon request Jennings and Company has repositioned the firm's business strategy from the basis of
competing on Audit risk The purpose of the requirement in having communication between the predecessor and successor help the successor auditor to evaluate whether to accept the engagement The predecessor auditor is
required to respond to the request of the successor auditor for information, there are actual or potential legal problems between the client and the predecessor. Which of the following best expresses the requirement to establish with the client an understanding of Auditors assert that their primary responsibility is to plan and perform the audit in order to provide Early appointment of the independent auditor will enable: a more efficient examination to be planned. An auditor
who accepts an audit engagement and does not possess the industry expertise of the obtain a knowledge of matters that relate to the nature of the entity's business In making client acceptance decisions the audit firm will consider: the client's business risk and the CPA Firm's engagement risk. Most auditors assess inherent risk as high for related parties and related-party transactions because: of the lack of independence between the parties The audit team gathers information about a new client's business and industry in order to obtain: an understanding of how economic events and transactions have an effect on the company's financial The auditor determines that Mathews Company occupies the 3rd floor of an office tower for which it related party transaction in which a major shareholder owns the office tower. An official record of meetings of the board of directors and stockholders is included in the corporate: minutes. Related party transactions may be indicated when another company Subsidizes certain operating expenses of the company Which one of the following is not an inherent risk factor in the financial statements? The company's inventory, because of multiple locations, is difficult to count. An auditor should examine minutes of the board of directors' meetings through the date of the audit report Which of the following would not likely be classified as a related-party transaction? an advance of one week's salary to an employee Which of the following best describes the coporate minutes of an entity? official record of the meetings of the board of directors and the stockholders An auditor searching for related party transactions should obtain an understanding of each this may reveal whether transactions would have taken place if the parties had been unrelated An auditor has accessed
client business risk and the risk to material misstatements to the clients apply the audit risk model in determining the appropriate audit procedures to perform Which of the following statements is most correct concerning audit risk? Audit risk cannot be quantified with certainty During audit planning, the auditor uses analytical procedures primarily to: understand the client's business and industry and to indicate possible misstatements. Which of the following is most correct with respect to the use of analytical procedures? Analytical procedures are performed by studying plausible relationships between financial and Which of the following best describes the first standard of field work? The auditor must maintain independence in mental attitude in all matters relating to the audit Which of the following would not be classified as an analytical procedure? Reconciling fixed asset dispositions with the fixed asset ledger
Which of the following statements is not correct with respect to analytical procedures? Analytical procedures must be performed throughout the audit. When performing planning analytical procedures for a client the auditor detected that the gross profit investgate the possibility the client may have made an error in their cost of goods sold computation. When are auditors likely to encounter judgment problems in the use of analytical procedures? The auditor is likely to encounter judgment problems in each of the above instances The major concern when using nonfinancial data in analytical procedures is the: accuracy of the nonfinancial data Which is a liquidity activity ratio? Inventory turnover Students also viewedAuditing Chapter 855 terms ambertavenner Chapter 1132 terms lcnx Chapter 650 terms mason_settle7 Audit chapter 916 terms mike_brown3438 Sets found in the same folderChapter 8A25 terms Hamley25 ACCT415 - AUDIT - ch 8 quiz16 terms clpikunas Audit Ch 743 terms ralphimbar Auditing Chapter 8146 terms Hadu911 Other sets by this creatorAudit Chapter 1873 terms cl2631 Audit Chapter 1461 terms cl2631 Audit Chapter 1348 terms cl2631 Audit Chapter 1069 terms cl2631 Verified questions
algebra **Suppose that the number of crates of an agricultural product is given by** $$ z=\frac{11 x y-0.0002 x^2-5 y}{0.03 x+3 y} $$ **where $x$ is the number of hours of labor and $y$ is the number of acres of the crop.** Find and interpret the marginal productivity of the number of acres of the crop $(y)$ when $x=300$ and $y=500$. Verified answer finance Describe the two methods used to determine the amount of an adjustment. Verified answer
finance Consider the Triple Creek Golf Complex discussed in Problem 25.1B. The manager of the Restaurants Department complains that sales and resulting earnings for the restaurants are not higher due to the poor reputation of the Pro Shops. Because the Pro Shops' staff is apparently rude and uninviting and because the Pro Shops seem shabby and are not tidy, the overall reputation of the total complex is slipping. The manager of the Pro Shops Department counters that, to keep operating expenses under control and improve ROI, staff wages have been cut. The manager of the Restaurant Department has requested that other evaluation techniques such as residual income or a balanced scorecard approach be considered in an effort to resolve this problem. **Instructions** Consider which balanced scorecard measures might be useful to the Triple Creek Golf Complex in evaluating the Pro Shops Department. In doing so, identify: a. The organizational goal that the measure is designed to support. Verified answer
question The director of graduate admissions at a local university is analyzing the relationship between scores on the Graduate Record Examination (GRE) and subsequent performance in graduate school, as measured by a student's grade point average (GPA). She uses a sample of seven students who graduated within the past five years. A portion of the data is shown in the accompanying table. $$ \text { b. At the } 5 \% \text { significance level, are GRE and GPA positively correlated? } $$ Verified answer Recommended textbook solutions Human Resource Management15th EditionJohn David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine 249 solutions Human Resource Management15th EditionJohn David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine 249 solutions
Information Technology Project Management: Providing Measurable Organizational Value5th EditionJack T. Marchewka 346 solutions Information Technology Project Management: Providing Measurable Organizational Value5th EditionJack T. Marchewka 346 solutions Other Quizlet setsCombo with EUH3205: Prof. Raymond, 19th Century Eu…89 terms wf11 Show me, tell me14 terms Teanna_MDL EMT Chapter 7- life span development130 terms Kajal_Prasad22 ECO 203, Handout #447 terms quizlette57214Plus Which of the following is the most important step in analytical procedures?According to AICPA (2008) guidance, the most important analytical procedure step for the auditor to complete is to form the expectation for the client's reported balance. This statement is true. Forming an expectation (Step 2 in analytical process) is the most important analytical step.
Which of the following is an analytical procedure that should be applied to the income statement?Which of the following is an analytical procedure that should be applied to the income statement? Compare the actual revenues and expenses with the corresponding figures of the previous year and investigate significant differences.
What are the five steps involved in analytical procedure?There are four elements that comprise distinct steps that are inherent in the process to using substantial analytical procedures:. STEP 1: Develop an independent expectation. ... . STEP 2: Define a significant difference (or threshold) ... . STEP 3: Compute difference. ... . STEP 4: Investigate significant differences and draw conclusions.. Which of the following is an analytical procedure that can be used to test revenue?Within those two broad areas, analytical procedures examples can include balance sheet and leverage ratios, cash flow statement analysis and rates of return and profitability analysis.
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Which of the following is most correct with respect to the use of analytical procedures?
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