- Study guides, Class notes & Summaries

Existence or Occurrence - correct answer Assets, liabilities, and equity interests exist and recorded transactions have occurred. Rights and Obligations - correct answer The company holds rights to the assets, while liabilities are the obligations of the company. Completeness - correct answer All assets, liabilities, equity interests, and transactions that should have been recorded have been recorded. Cutoff - correct answer Transactions and events have been recorded in the correct acco...

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8 pages

Written in 2023/2024

Grade A+

brittton

3. Which of the following is not a reason that the auditor must gain an understanding of the client's internal control system? a. Better understand the client, its risks, and how it manages those risks. b. Assess control risk and identify the types of financial statement misstatements that are most likely to occur. c. d. Plan direct tests of account balances to determine if misstatements have occurred. All are reasons why auditors must gain an understanding of the client...

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12 pages

Written in 2025/2026

Grade A

Ivie

1. In determining auditor independence, the SEC considers which of the following as an independence impairment? (pg. 137) a. An auditor performs the accounting work and then audits it. b. An auditor has no conflicting interest with the client. c. An auditor does not act as an advocate for the audit client. d. An auditor does not act as an employee of the audit client. Ans: An auditor performs the accounting work and then audits it. 2. Mark Pulley is an auditor at Pulley an...

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21 pages

Written in 2025/2026

Grade A+

Ivie

Audit Theory - Review of Audit Process Questions and Answers Multiple Choice/Audit Theory - Review of Audit Process Questions and Answers Multiple Choice/Audit Theory - Review of Audit Process Questions and Answers Multiple Choice

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44 pages

Written in 2023/2024

Grade A+

examsetters

LOGO HERE Auditing Theory rae Introduction to Assurance and Non-assurance Engagements 1. Which of the following Philippine Standards are to be applied to compilation engagements, agreed-upon procedures and other related standards as specified by the AASC? a. PSAs b. PSREs c. PSAEs d. PSRSs 2. These are issued to provide interpretative guidance and practical assistance to professional accountants in implementing PSAs and to promote good practice. a. Practice statements b. PREPSs, and PRSP...

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44 pages

Written in 2023/2024

Grade A+

atiexpert

LOGO HERE Auditing Theory rae Introduction to Assurance and Non-assurance Engagements 1. Which of the following Philippine Standards are to be applied to compilation engagements, agreed-upon procedures and other related standards as specified by the AASC? a. PSAs b. PSREs c. PSAEs d. PSRSs 2. These are issued to provide interpretative guidance and practical assistance to professional accountants in implementing PSAs and to promote good practice. a. Practice statements b. PREPSs, and PRSP...

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44 pages

Written in 2023/2024

Grade A+

gradebooster

The auditor should consider contingent liabilities up until __ date - correct answer Audit Report Date A letter of inquiry to the client's attorney should include (IDPUDC) - correct answer IDENTIFICATION of client DATE of audit List of PENDING litigation List of possible UNASSERTED claims Request that the attorney comment on DISAGREEMENTS Statement that client will CONSULT attorney about need for disclosures Auditor is only required to inquire an attorney about - correct answer Mater...

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8 pages

Written in 2023/2024

Grade A+

brittton

Which of the following is not a financial statement assertion made by management? a. Existence of recorded assets and liabilities. b. Completeness of recorded assets and liabilities. c. Valuation of assets and liabilities. d. Effectiveness of internal control. - correct answer d. Effectiveness of internal control Which of the following business characteristics is not indicative of high inherent risk? a. Operating results that are highly sensitive to economic factors. b. Large likely...

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38 pages

Written in 2023/2024

Grade A+

brittton

Standard Audit Procedures Acronym - correct answer C FIVE CARROT WARS C - correct answer Confirmations - receive independent confirmations from 3rd party sources F - correct answer Footing, Cross-footing, recalculation- verifying totals for accounts are correct I - correct answer Inquiry- Inquire management V - correct answer Vouching- looking at support evidence E - correct answer Examination & Inspection- Examining or inspecting records or tangible assets C - correct answer C...

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4 pages

Written in 2023/2024

Grade A+

brittton

What is accounting? - correct answer Process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of information What is auditing? - correct answer the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria Auditing should be done by a competent, independent person What is attestation? - correct answer service in whic...

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32 pages

Written in 2023/2024

Grade A+

brittton

What are the two preconditions for an audit? - correct answer 1) Acceptable financial reporting framework must be in place 2) Management must acknowledge it's responsibility for preparing FS, maintaining IC, and promises to provide access to information necessary to complete the audit Audit __ __ need to be documented in writing so that they can be referred back to - correct answer Audit Engagement Terms What 6 things must be covered in the engagement letter? - correct answer -Scope and ...

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12 pages

Written in 2023/2024

Grade A+

brittton