100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Solutions for Auditing: The Art and Science of Assurance Engagements, 15th Canadian Edition Arens CA$43.12   Add to cart
Quickly navigate to
Preview
  2.  
  3. Auditing
  4.  
  5. Auditing
  6.  
  7. Auditing

Exam (elaborations)

Solutions for Auditing: The Art and Science of Assurance Engagements, 15th Canadian Edition Arens
 73 views  3 purchases

Complete Solutions Manual for Auditing: The Art and Science of Assurance Engagements 15ce 15th Canadian Edition by Alvin A. Arens, Randal J. Elder, Mark S. Beasley. ISBN-13: 2089 Full Chapters Solutions are included The Demand for Audit and Other Assurance Services The Public Accounting Prof...

[Show more]

Preview 1 out of 434  pages

Document information

  • July 19, 2023
  • 434
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

All documents for this subject (140)

Seller

avatar-seller
StepsSol

Reviews received

Content preview

Chapter 1
The Demand for Audit and Other Assurance
Services


Concept Checks
C1-1 What is meant by determining the degree of correspondence between information and
established criteria? What are the criteria for the audit of a company’s financial statements?

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 International Financial Reporting Standards, Accounting Standards for Private
Enterprises, Accounting Standards for Not-for-Profits.

C1-2 What are the major causes of information risk. How can information risk be reduced?
Information risk reflects the possibility that the information upon which the business risk decision
was made was inaccurate. The major causes of information risk are: remoteness of information,
biases and motives of the provider, voluminous data, and complex exchange transactions. Users
can reduce information risk by examining the information directly, sharing the risk with the
information preparer, or requesting some assurance over the information (either an audit or a
review engagement).
C1-3 Explain how and why the auditor makes information trustworthy and credible.
External users value the auditor’s assurance because of the auditor’s integrity, independence,
expertise, and knowledge of the subject matter. This makes the information credible and
trustworthy.
C1-4 Describe and explain the differences and similarities between financial statement,
compliance, and operational audits.

Differences—are based upon the information and criteria being audited: a financial statement
audit (e.g., historical financial statements) assesses evidence with respect to potential material
misstatements; a compliance audit (e.g., compliance with environmental legislation) assesses the
organization’s ability to comply with legislation; and an operational audit (e.g., effective factory
production) helps to provide good quality control and manage costs.
Similarities—The auditor is acting with due care, meaning that he/she is following some type of
systematic process governed by auditing standards (financial statements: CPA Canada Handbook
(GAAS); compliance: CPA Canada Handbook or IIA standards, depending upon whether a public
accountant is conducting the audit; and operational: most likely IIA standards). The auditor is also
independent and competent (although the degree of independence will vary according to who is
conducting the audit).

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 StepsSol. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$43.12. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80364 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$43.12  3x  sold
  • (0)
  Add to cart