Exam (elaborations)
Solutions for Auditing & Assurance Concepts and Applications 15th Canadian Edition Arens
- Course
- Institution
Solutions for Auditing & Assurance Concepts and Applications 15th Canadian Edition Arens
[Show more]
Seller
Follow
Content preview
Solutions for Auditing & AssuranceConcepts and Applications 15th
Canadian Edition Arens
Audit - ANSA systematic process of objectively obtaining and evaluating evidence regarding
assertions about the economic actions and events to ascertain the degree of correspondence
between these assertions and establish criteria and communicating the results thereof.
Audit process - ANSThe sequence of different activities involved in an audit.
Pre-Engagement Activities - ANSThe decision whether to accept a client or continue a
relationship with existing one.
Audit Planning - ANSAuditor obtains more detailed knowledge about the clients business and
industry; and develops an overall audit strategy, audit plan and audit program.
Consideration of internal controls - ANSInternal controls are evaluated if it can prevent, detect or
correct material misstatements in a timely manner.
Evidence gathering or substantive testing - ANSCould either be analytical procedures or test of
details of transactions and balances performed by the auditor to detect material misstatements
as a basis in concluding whether the entities financial statements are presented clearly in
accordance with financial reporting standards.
Completing the audit - ANSOverall opinion is formed.
Issuance of the audit report - ANSThe auditor drafts and issues the audit report which states the
author's opinion regarding the fairness of the financial statements.
Post audit responsibilities - ANSThe auditor performs procedures to determine compliance with
the quality controls and to identify areas for improvement and the current and future audit
engagements.
Preconditions of an audit - ANSThe used by management of an acceptable financial reporting
framework in the preparation of the financial statements and the agreement of management
and, where appropriate, those charged with governance to the premise on which an order is
conducted.
RID: Matters to be discussed with predecessor auditor - ANSReasons for change of auditor
, Integrity of the management
Disagreements as to accounting principles, auditing procedures, etc.
Auditing subjectively obtains and evaluates evidence - ANSWhich of the following is an incorrect
phrase regarding auditing?
a. Auditing is the systematic process.
b. Auditing subjectively obtains and evaluates evidence.
c. Auditing evaluates evidence regarding assertions.
d. Auditing communicates results to interested users.
I, V, II, III, IV, VII, VI - ANSSet the following phases in proper order.
I. Pre-engagement
II. Internal controls
III. Evidence gathering
IV. Completing the audit
V. Planning
VI. Post audit responsibilities
VII. Reporting
Analytical Procedures - ANSWhich of the following procedures is not required to be performed
by the auditor?
a. Risk assessment procedures
b. Substantive procedures
c. Tests of control
d. Analytical procedures
Both I and II - ANSWhich of the following procedures should be performed by the auditor prior to
starting an initial audit?
I. Perform procedures regarding the acceptance of the client relationship and the specific audit
engagement.
II. Communicate with the previous auditor, where there has been a change of auditors, in
compliance with the relevant ethical requirements.
Substantive testing phase - ANSConfirmation of receivable or bank balance is performed during
what phase?
a. Studying and evaluating internal controls phase
b. Substantive testing phase
c. Pre-engagement phase
d. Completing the audit phase
The client's probability of achieving an unqualified opinion. - ANSWhich of the following would
not be a consideration of a CPA firm and deciding whether to except a new client?
a. The client's financial ability.
b. The client's relations with its previous CPA firm.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller QualityPDF. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80189 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now