Question 1

A public accounting firm is associated with the financial report of its client:

Accepted Answer

A)  only when it does a financial audit. 
B)  even if the firm only assists a client in preparing the financial report but does not do an audit. 
C)  only when it does attestation services, such as a review or an audit. 
D)  if it performs any services at all for the client. 
A)  only when it does a financial audit. 
B)  even if the firm only assists a client in preparing the financial report but does not do an audit. 
C)  only when it does attestation services, such as a review or an audit. 
D)  if it performs any services at all for the client.

Question 2

Explain how auditors decide whether or not a misstatement they encounter in the financial report is material.For example, in auditing ZZZ Pty Ltd, it is discovered that stock is overstated by $300 000.Is this material?

Accepted Answer

The auditors must compare the value of a

Question 3

Whenever an auditor discovers a material and pervasive violation of an accounting standard in the financial report, and the client refuses to correct it, the auditor should issue a disclaimer of opinion.

Accepted Answer

A) True 
 B)False

Question 4

ASA 700 requires that the title of the audit report:

Accepted Answer

A)  indicate whether the author is a member of a professional body. 
B)  not include any discriminatory language. 
C)  indicate whether the author is a proprietorship, partnership, or incorporated. 
D)  include the word 'independent'. 
A)  indicate whether the author is a member of a professional body. 
B)  not include any discriminatory language. 
C)  indicate whether the author is a proprietorship, partnership, or incorporated. 
D)  include the word 'independent'.

Question 5

The intent in the opinion statement is to indicate that the conclusion reached is based on fact.

Accepted Answer

A) True 
 B)False

A public accounting firm is associated with the financial report of its client:

Explain how auditors decide whether or not a misstatement they encounter in the financial report is material.For example, in auditing ZZZ Pty Ltd, it is discovered that stock is overstated by $300 000.Is this material?

Whenever an auditor discovers a material and pervasive violation of an accounting standard in the financial report, and the client refuses to correct it, the auditor should issue a disclaimer of opinion.

ASA 700 requires that the title of the audit report:

The intent in the opinion statement is to indicate that the conclusion reached is based on fact.

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Other auditing and assurance engagements

Filters

Exam 18: Audit reporting

A public accounting firm is associated with the financial report of its client:

Explain how auditors decide whether or not a misstatement they encounter in the financial report is material.For example, in auditing ZZZ Pty Ltd, it is discovered that stock is overstated by $300 000.Is this material?

Whenever an auditor discovers a material and pervasive violation of an accounting standard in the financial report, and the client refuses to correct it, the auditor should issue a disclaimer of opinion.

ASA 700 requires that the title of the audit report:

The intent in the opinion statement is to indicate that the conclusion reached is based on fact.

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Other auditing and assurance engagements

Filters