SOLUTION MANUAL For Auditing And Assurance Services 17th Edition By Chris E. Hogan Alvin A. Arens, Randal J. Elder, Mark S. Beasley Latest Update Graded A+

SOLUTION MANUAL
For Auditing And Assurance Services 17th Edition By Chris E. Hogan Alvin
A. Arens, Randal J. Elder, Mark S. Beasley
Latest Update Graded A+

,Solution Manual For
Auditing And Assurance Services, 17th Edition By Alvin A. Arens, Randal J. Elder,
Mark S. Beasley, Chris E. Hogan

Chapter 1-26


Chapter 1

The Demand For Audit And Other Assurance Services
 Concept Checks

P. 8

1. To Do An Audit, There Must Be Information In A Verifiable Form And Some
Standards (Criteria) By Which The Auditor Can Evaluate The Information.
Determining The Degree Of Correspondence Between Information And
Established Criteria Is Determining Whether A Given Set Of Information Is In
Accordance With The Established Criteria. For An Audit Of A Company‘S
Financial Statements The Criteria Are U.S. Generally Accepted Accounting
Principles Or International Financial Reporting Standards.

2. The Four Primary Causes Of Information Risk Are Remoteness Of
Information, Biases And Motives Of The Provider, Voluminous Data, And The
Existence Of Complex Exchange Transactions.
The Three Main Ways To Reduce Information Risk Are:
1. User Verifies The Information.
2. User Shares The Information Risk With Management.
3. Audited Financial Statements Are Provided.

P. 16

1. The Three Main Types Of Audits Are Operational Audits, Compliance Audits,
And Financial Statement Audits. The Table Below Summarizes The Purposes
And Nature Of Each Type Of Audit.


Audits Of
Operational Compliance Financial
Audits Audits Statement
s




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, Purpose To Evaluate To Determine To Determine
Whether Whether The Client Whether The
Operating Is Following Overall
Procedures Are Specific Procedures Financial
Efficient And Set By A Higher Statements Are
Effective Authority Presented In
Accordance
With Specified
Criteria (Usually
Gaap)

Concept Checks (Continued)

Audits Of
Operational Compliance Financial
Audits Audits Statement
s
Users Of Management Of Authority That Different Groups
Audit Report Organization Established Rules, For Different
Regulations, And Purposes — Many
Procedures, Either Outside Entities
Internal Or External To
Auditee
Nature Highly Not Standardized, Highly
Nonstandard; But Specific And Standardized
Often Subjective Usually Objective
Performed By:
Cpas Almost
Frequently Occasionally Universally
Gao
Auditor Frequently Frequently Occasionally
s
Irs
Auditor Never Universally Never
s
Internal
Auditor Frequently Frequently Frequently*
s
* Internal Auditors May Assist Cpas In The Audit Of Financial Statements. Internal
Auditors May Also Audit Internal Financial Statements For Use By Management.

2. The Major Differences In The Scope Of Audit Responsibilities For Cpas,
Gao Auditors, Irs Agents, And Internal Auditors Are:

 Cpas Perform Audits Of Financial Statements Prepared Using U.S.
4-2

, Gaap Or Ifrs In Accordance With Auditing Standards.
 Gao Auditors Perform Compliance Or Operational Audits In Order To
Assure The Congress Of The Expenditure Of Public Funds In
Accordance With Its Directives And The Law.




4-2