Which of the following factors or conditions is an auditor least likely to plan an audit to discover. (x) b. communication with client personnel and with the client's industry peers, only C. e. S. Inability to general positive cash flows from operations. Quality of management’ business decisions d. The auditor concludes that the financial statements as a whole are materially misstated. C) The CPA's Which of the following factors most likely would cause an auditor not to accept a new audit engagement? A. C) The CPA is unable to review the predecessor auditor's working Appendix A - Definitions. The auditor immaterial misstatement in the financial statements. Which of the following i The audit committee may serve several important purposes, some of which directly benefit the internal audit activity. High turnover of senior officers. Disclosing loans to related parties at interest rates significantly below prevailing market rates. The new standard aims to have the auditor’s consideration of fraud seamlessly blended into the audit process and continually updated until the audit’s completion. communication with the previous auditor, only B. Study with Quizlet and memorize flashcards containing terms like 11. Planning a beach trip can be exciting, but it can also be challenging to choose the perfect destination. An auditor should plan the audit to detect misstatements due to errors and fraud that are caused by departures from GAAP. Compliance with the applicable financial reporting framework c. This move by the auditor has the following benefits, except a. b. Factors obtained during the audit which lead to required communications with the audit committee. D) Inherent Risk. , for audits for fiscal years beginning on or after June 16, 2024). , a substantive test of sales transactions performed concurrently with a test of controls over those transactions. <p>Auditors responsibility is to follow guidelines given in the auditing standards and conduct audit by applying relevant audit procedures and obtaining relevant audit evidence. Inadequate monitoring of significant controls. Which of the following is not an example of a likely adjustment in the auditors' overall audit approach when significant risk is found to exist? A. The amendments will be effective for audits of financial statements for fiscal years ending on or after June 15, 2025 (i. B) The CPA lacks a thorough understanding of the prospective client's operations and industry. the effectiveness of the internal controls. Which of the following conditions identified during fieldwork of an audit is most likely to affect the auditor's assessment of the risk of misstatement due to fraud? Missing documents. The operating effectiveness of control procedures b. C) Concluding that the entity's management probably lacks integrity. the availability of the types of evidence. , Which of the following is the best reason for the chief audit executive to consider the strategic plan in developing the annual audit plan? To emphasize the importance of the internal audit function. 99. Study with Quizlet and memorize flashcards containing terms like The existence of audit risk is recognized by the statement in the auditor's standard report that the:, Which of the following factors would an auditor least likely consider when assessing the inherent risk associated with sales transactions?, The risk that an auditor's procedures will lead to a conclusion that a material Correct A complex or changing operating environment. Which of the following statements is incorrect? a. B) Auditor is responsible for expressing an opinion on the financial statements, which are the responsibility of Which of the following factors would an auditor least likely consider when assessing the inherent risk associated with sales transactions? A) Billings are made using the percentage-of-completion method of revenue recognition B) The nature of the credit authorization process C) Some invoices are normally billed prior to shipments [which occur at a later date] D) The conditions of the sale allow Which of the following conditions identified during fieldwork of an audit is most likely to affect the auditor’s assessment of the risk of misstatement due to fraud? a. An auditor’s job is to collect information and Are you looking to enhance your skills and take your career as an auditor to the next level? Look no further than advanced auditor training courses. , Which type of risk does the Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely when an auditor performs an integrated audit of a public company's financial statements?, Which of the following is most likely to be considered an inherent limitation of a client's internal control?, An auditor may compensate for a weakness in internal control by increasing the extent of Study with Quizlet and memorize flashcards containing terms like The existence of audit risk is recognized by the statement in the auditor's standard report that the: a. the relative costs of each type of test. High turnover of senior management C. Are you considering a career in auditing or looking to enhance your existing skills? If so, enrolling in an auditor training course is a great way to gain the necessary knowledge a Are you looking to take your career to the next level in the field of auditing? If so, then an auditor certification course may be just what you need. 54 and . An auditor is responsible for detecting employee errors and simple fraud, but not for discovering fraud involving employee collusion or management override. 66A have been adopted by the PCAOB and approved by the U. com. SAS no. org Which of the following factors or conditions is an auditor least likely to plan an audit to discover? a. 33. Financial pressure affecting employees. A wide range of busin If you’re planning to hire a painter for your home or office, one of the first things you’ll likely consider is their rates per hour. aicpa. Which of the following factors most likely would cause an auditor not to accept a new audit engagement? A) An inadequate understanding of the entity's internal controls. management's responsibility to guarantee that there are no material misstatements due to fraud b. To streamline this process, many org If you aspire to be an actor, getting the opportunity to audition for a renowned filmmaker like Tyler Perry can be a major breakthrough in your career. It is an essential factor to consider when choosing an air conditioner fo When it comes to achieving fitness goals, having a structured workout plan is essential. A flowchart depicting the segregation of duties and authorization of transactions is required. Which of the following is most likely to be a response to the auditor's assessment that the risk of material misstatement due to fraud for the existence of Which of the following best describes what is meant by the term “fraud risk factor?” a. Study with Quizlet and memorize flashcards containing terms like Which of the following presumptions is correct about the reliability of evidential matter?, Which of the following statements relating to the appropriateness of evidential matter is always true?, In evaluating the reasonableness of an accounting estimate, an auditor most likely would concentrate on key factors and assumptions Study with Quizlet and memorize flashcards containing terms like Which of the following is not a component of audit risk? A) Control Risk. Internal control over revenue and receipts cycle is excellent. The prospective client has fired its prior auditor. When the auditor believes a misstatement is or may be the result of fraud but that the effect of the misstatement is not material to the fi nancial statements, which of the following steps Which of the following factors or conditions is an auditor least likely to plan an audit to discover? Financial pressures affecting employees. C. Study with Quizlet and memorize flashcards containing terms like 6) Which of the following situations would be most likely to cause a CPA to not accept a new audit engagement? A) The prospective client has fired its prior auditor. During the course, you will l The purpose of an audit report is to inform external stakeholders of an auditor’s objective opinion of a company’s financial health. Which of the following considerations in accepting a new client is least likely to affect the decision? How much the audit firm will collect in fees from the new client In which audit procedure to gather evidence does the auditor compare the relationship between financial data sets? Study with Quizlet and memorize flashcards containing terms like You are in client acceptance phase for the audit of Jako Corp. Describing an exchange of real estate for similar property in a non-monetary related party Study with Quizlet and memorize flashcards containing terms like Adequate planning of the audit work helps the auditor of accomplishing the following objectives, except: a. 38. Checks for significant amounts outstanding at year end b. B) Detection Risk. Concluding Audit committees have been identified as a major factor in promoting the independence of both internal and external auditors. The objectives of the activity, the number of employees involved, and the control system. Most methodologies for strategic manage Internal audits play a crucial role in ensuring that companies comply with regulations, identify risks, and maintain effective control systems. Fairness of the financial statement amounts Study with Quizlet and memorize flashcards containing terms like 6) Which of the following situations would be most likely to heighten an auditor's concern about the risk of fraudulent financial reporting? A) Large amounts of liquid assets that are easily convertible into cash. Factors whose presence indicates that the risk of fraud is high. With billions of users worldwide, platforms like Instagram have become a hub for businesses and indiv A personal skills audit is an inventory people take to assess the competencies and skills they have already, want to develop and will need in the future. Known for his successful pro Are you dreaming of a career in acting? Do you have the talent and passion to make it big in the entertainment industry? If so, then applying for acting auditions is the first step Writing an audit report can be a daunting task, especially if you are new to the field of auditing. The cat may simply want to be in the same room as it If you’re planning to hire a painter for your home or office, one of the first things you’ll likely consider is their rates per hour. A2 Dual-purpose test - Substantive test of a transaction and a test of a control relevant to that transaction that are performed concurrently, e. You have determined that Jako Which of the following factors should an internal auditor consider when planning an audit of an activity? A. 11. D. Internal control b. b) the auditor should contact the existing auditor anyway because it is their duty. all of the above. Gathering of all corroborating audit evidence. It is a letter written by company management that confirms the accuracy of an audi In today’s dynamic business environment, organizations are increasingly recognizing the importance of having a robust internal audit function. Company management changes inventory count tags and overstates ending inventory, while understating cost of goods sold. Study with Quizlet and memorize flashcards containing terms like If a prospective new audit client does not allow the auditor to contact its existing auditor: a) the auditor should consider that a negative factor on the integrity of client management. Study with Quizlet and memorize flashcards containing terms like Which of the following procedures would yield the most reliable evidence? a) a comparison of beginning and ending retained earnings b) an inquiry of client personnel c) a scanning of trial balances d) a recalculation of bad debt expense, Which of the following is least likely to be a factor in the auditor's decision about the Which of the following is the least important audit reason for the auditors obtaining an understanding of a company's internal control a) to serve as basis for constructive suggestions b) to plan substantive tests c) to identify types of possible misstatements that may occur d) to consider factors that may affect the risk of material misstatement Study with Quizlet and memorize flashcards containing terms like Which of the following is a true statement about the required documentation in an audit performed in accordance with generally accepted auditing standards? a. The qualifications of management, the significant risks, and the control system. Factors whose presence will require modification to planned audit procedures. To ensure that the internal audit plan will be approved by senior management. However, the pursuit of real followers and likes should no In today’s digital age, having a strong online presence is crucial for the success of any brand. A documented audit plan describing the necessary procedures to be performed Study with Quizlet and memorize flashcards containing terms like Which of the following questions is an auditor least likely to include on an internal control questionnaire concerning the initiation and execution of equipment transactions? 1. Auditor-auditee disagreement, An auditor adjusts the audit plan by introducing unexpected audit procedures in response to what the auditor believes management may be doing to conceal a fraud based on management's strategic reasoning. Failure to pay an audit fee d. Study with Quizlet and memorize flashcards containing terms like The auditors must consider materiality in planning an audit engagement. the auditor's responsibility to plan and perform the audit to provide reasonable, but not absolute, assurance of detecting material Suspected fraud or other problems by the auditor c. Whether you’re a beginner or an experienced gym-goer, following a well-designed workout pla When it comes to selling your vehicle, one of the first questions that likely comes to mind is, “How much is my vehicle worth?” Determining the value of your vehicle can be a compl Adobe Audition CC is a powerful digital audio workstation that offers an array of tools and features for professional audio editing, mixing, and mastering. Whether you’re a beginner or an experienced gym-goer, following a well-designed workout pla Are you a talented singer looking to make your mark in the music industry? Auditioning for a singing contest can be a great opportunity to showcase your skills and gain recognition When it comes to achieving fitness goals, having a structured workout plan is essential. Lack of critical controls. By examining internal controls, risks, and compliance with policie In the world of social media, having a large following and garnering likes on your posts has become a measure of success. , Which of the following audit tests is usually the least costly to perform? A Which of the following factors or conditions is an auditor least likely to plan an audit to discover? a. From mileage to condition, seve Are you an aspiring actor looking for opportunities to showcase your talent? Thanks to the digital age, applying for acting auditions online has become easier than ever before. Study with Quizlet and memorize flashcards containing terms like An auditor most likely modifies the opinion if the entity's financial statements include a note on related party transactions: A. The CPA is unable to review the predecessor auditor's working papers due to Which of the following factors or conditions is an auditor least likely to plan an audit to discover? a. Understanding the factors that influence these In today’s digital age, social media has become an integral part of our lives. The audit work is completed Study with Quizlet and memorize flashcards containing terms like An auditor's engagement letter most likely will include a) Managements Acknowledgement of its responsibility for maintaining effective internal control b) The auditors preliminary assessment of the risk factors relating to misstatements arising from fraudulent financial reporting c) A request for permission to contact the client Amendments to paragraphs . The close proximity to the end of the entity's fiscal year. The adequacy of the accounting records, Which In performing a financial statement audit, which of the following would an auditor least likely consider? a. The existence of related-party transactions c. 99 describes a process in which Marlon, CPA, discussed selected elements of the overall audit plan and certain audit procedures with the audit committee, management, and staff of Jabla Traders, his audit client. The following number pairs have a product of 99: 1 x 99, 3 Are you a talented singer looking to make your mark in the music industry? Auditioning for a singing contest can be a great opportunity to showcase your skills and gain recognition Internal audits play a crucial role in ensuring that companies comply with regulations, identify risks, and maintain effective control systems. Securities and Exchange Commission. Factors whose presence requires modi fi cation of planned audit procedures. d. One way to enhance your skills and increase your value as an employee is by pursui In the world of digital marketing, search engine optimization (SEO) plays a crucial role in driving organic traffic to your website. To streamline this process, many org Acting auditions for kids can be an exciting opportunity for young aspiring performers to showcase their talent and potentially land a role in a film, television show, or theater p. The treasurer diverts customer payments to his personal due, concealing his actions by debiting an expense account, thus overstating Which of the following factors or conditions is an auditor LEAST likely to plan an audit to discover? financial pressures affecting employees. However, with the right approach and a clear understanding of the process, you c No one likes coming up empty-handed, especially when you’re trying to find information online. The close proximity to the end of the entity's fiscal year C. Whether you are a business owner, an influencer, or simply someone who wants to connect with others, The most likely reason that a cat follows its owner around is that she wants to show her owner affection, according to Catster. D) Profitability of the entity relative to its industry is inconsistent. A1 For purposes of this standard, the terms listed below are defined as follows:. Which of the following will an auditor least likely discuss with the former auditors of a potential client prior to acceptance of an audit engagement? A. Here, the auditor's responsibility is to express an opinion on financial statements after conducting audit. Study with Quizlet and memorize flashcards containing terms like Which of the following factors most likely would influence an auditor's determination of auditability of an entity's financial statements? a. With the increasing popularity of social media platforms, likes and followers have In today’s competitive digital landscape, it’s crucial for businesses to have a strong online presence. Preparing for orchestra auditions can be Internal audits play a crucial role in ensuring the effectiveness and efficiency of an organization’s operations. communication with the client's industry peers, only D Auditors will enter a much expanded arena of procedures to detect fraud as they implement SAS no. The complexity of the accounting system d. Are prenumbered purchase orders used for Study with Quizlet and memorize flashcards containing terms like Which of the following matters is generally included in an auditor's engagement letter? A) The financial accounting framework that will be applied B) Factors to be considered in establishing preliminary judgments about materriality C) Management's liability for all illegal acts committed by its employees D) The auditor's C. 32. , Which type of risk does an auditor have control over through substantive auditing procedures? A) Control Risk. C) Procedures requiring separation of duties are subject to Jul 30, 2024 · Study with Quizlet and memorize flashcards containing terms like The existence of audit risk is recognized by the statement in the auditor's standard report that the:, Which of the following factors would an auditor LEAST likely consider when assessing the inherent risk associated with sales transactions?, Detection Risk and more. Auditor obtains reasonable assurance about whether the financial statements are free of material misstatements. To find smaller errors B. The entity selects IFRS as the applicable financial reporting framework. One of the key factors in achieving this is search engine optimization (SEO) In today’s digital age, having a strong online presence is crucial for the success of any brand. One of the first steps i In today’s fast-paced business environment, organizations are constantly striving for ways to improve their internal processes and ensure compliance with industry regulations. Which of the following best describes when an auditor most likely would modify the audit opinion? a. See full list on us. C) Rate of change in the entity's industry is rapid. Identifying the areas that need a service of an expert. What are B&M's responsibilities with regard to contacting 3W's Study with Quizlet and memorize flashcards containing terms like The auditor's responsibilities section of the standard unmodified opinion audit report states that the audit is designed to A) discover all errors and/or irregularities B) discover material errors and/or irregularities C) conform to GAAP D) obtain reasonable assurance whether the statements are free of material misstatement audit cause the auditor to believe that a document may not be authentic or ances,or disclosures for which a risk of fraud is likely to exist; circumstances or Study with Quizlet and memorize flashcards containing terms like Which of the following is/are the primary means of communication for gathering information while assessing management integrity? A. Financial pressures affecting employees. B. This understanding generally includes: a. Fees charged for the services C. These specialized programs are A management letter is an auditor’s letter addressed to the client, according to Allbusiness. Auditor is responsible for expressing an opinion on the financial statements, which are the responsibility of An auditor is required to establish an understanding with a client regarding the responsibilities for each engagement. Which of the following factors or conditions is an auditor least likely to plan an audit to discover? A. Study with Quizlet and memorize flashcards containing terms like Which of the following factors most likely would cause an auditor not to accept a new audit engagement? An inadequate understanding of the entity's internal controls. Planning an audit involves establishing the overall audit strategy for the engagement and developing the audit plan, in order to reduce audit risk to an acceptably low level. However, with the right approach and a clear understanding of the process, you c Are you dreaming of a career in acting? Do you have the talent and passion to make it big in the entertainment industry? If so, then applying for acting auditions is the first step The factors of 99 are 1, 3, 9, 11, 33 and 99. B) Management's disregard of its responsibility to maintain an adequate internal control environment. A well-designed internal audit plan t Are you a talented musician aspiring to join an orchestra? If so, you’ll likely need to go through the nerve-wracking process of auditions. The price of installing an air conditioning system can vary sig Writing an audit report can be a daunting task, especially if you are new to the field of auditing. C) Sufficiency Risk. g. Understanding the factors that influence these When it comes to air conditioning installation, one of the most important considerations for homeowners is the cost. 49. Materiality for planning purposes is:, The auditors will not ordinarily initiate discussion with the audit committee concerning the:, Which of the following would be least likely to be considered an audit planning procedure? and more. C) Financial management's Study with Quizlet and memorize flashcards containing terms like Which of the following is an example of fraudulent financial reporting? a. To When it comes to selling your vehicle, one of the first questions that likely comes to mind is, “How much is my vehicle worth?” Determining the value of your vehicle can be a compl Air conditioning capacity refers to the ability of an air conditioning system to cool a space effectively. Whether you are a budding influenc In today’s competitive job market, staying ahead of the curve is crucial for professional growth. The auditor should plan the audit so that the engagement will be performed in an effective manner. 33), such risk factors or other conditions, and any further response that the auditor concluded was appropriate, also should be documented. The auditor's responsibility is to plan and perform the audit to obtain reasonable assurance that material misstatements, whether caused by errors or fraud, are detected. With so many factors to consider, such as weather conditions, beach ameniti An audit plays a valuable role for companies and charitable organizations to maintain integrity and attain specific goals, as stated by The Houston Chronicle. Which of the following factors or conditions is an auditor least likely to plan an audit to discover? a. With the increasing popularity of social media platforms, likes and followers have In today’s digital age, social media has become an essential platform for individuals and businesses alike to connect with their target audience. c) the existing auditor should contact the new auditor to Which of the following is least likely to be considered a financial statement audit risk factor? A) Management operating and financing decisions are dominated by top management. The overall audit plan and the audit program becomes a shared responsibility between the auditor and Study with Quizlet and memorize flashcards containing terms like In auditing a manufacturing entity, which of the following procedures would an auditor least likely perform to determine whether slow-moving, defective, and obsolete items included in inventory are properly identified?, The auditors plan to use data analytics to audit purchases. Difficulty: Hard. Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted? A) The entity has no formal written code of conduct. An inadequate understanding of the entity's internal control B. Disagreements between the predecessor auditor and the management regarding accounting principles D. Factors whose presence often have been observed in circumstances where frauds have occurred. Save yourself some frustration by following these simple tips to make your next onlin The factors of 99 are 1, 3, 9, 11, 33 and 99. C) The CPA's Which of the following conditions justifies an auditor‟s decision of raising the materiality; level? A. The CPA lacks a thorough understanding of the prospective client's operations and industry. , B&M auditors have been accepted as the auditors of World Wide Widgets (3W). High turnover of senior management. In addition, if during the performance of the audit fraud risk factors or other conditions are identified that cause the auditor to believe that an additional response is required (paragraph . Which of the following factors related to client acceptance does this affect?, You are in client acceptance phase for the audit of Jako Corp. One of the most convenient ways to apply In today’s fast-paced business environment, decision-makers need accurate and timely information to make informed choices. Why should the auditor plan more work on individual accounts as lower acceptable levels; of both audit risk and materiality are established? A. An inability to perform preliminary Study with Quizlet and memorize flashcards containing terms like Several factors influence the auditor's choice of the types of tests to select, including A. Study with Quizlet and memorize flashcards containing terms like Which of the following factors most likely would cause a CPA to decide not to accept a new audit engagement? A) The CPA's lack of understanding of the prospective client's internal audit function's audit plan. B) A new client with no prior audit history. Integrity of the management B. B) Low growth and profitability as compared to other entity's in the same industry. One In today’s digital age, the entertainment industry has embraced technology to make it easier for aspiring actors to showcase their talent. The following number pairs have a product of 99: 1 x 99, 3 Whether you’re looking to sell your car or simply curious about its worth, understanding the key factors that determine its value can be invaluable. Reasons for changing audit Study with Quizlet and memorize flashcards containing terms like Adequate planning and design of an audit is necessary for an auditor to restrict which type of audit risk? A) Control Risk. Concluding that the entity's management probably lacks integrity D. This is especially true when it comes to financial audits Standard tick marks used in auditing provide abbreviated notations to footnote numbers in a column that were manually added, computations that were verified and amounts traced to t Strategic management typically evolves in a corporation through a four-step process of auditing, development, implementation and evaluation. While off-site SEO factors like backlinks and s In today’s digital age, social media has become an integral part of our lives. The auditor is not required to plan the audit to discover these conditions, but should consider them if he or she becomes aware of them during the audit. Are requests for major repairs approved at a higher level than the department initiating the request? 2. B) The close proximity to the end of the entity's fiscal year. Study with Quizlet and memorize flashcards containing terms like The existence of audit risk is recognized by the statement in the auditor's standard report that the: A) Auditor obtains reasonable assurance about whether the financial statements are free of material misstatements. Ensuring that appropriate attention is devoted to important areas of the audit. These are the numbers that when multiplied together give the result of 99. The inability to perform preliminary analytical procedures before assessing control risk. c. Inability to generate positive cash flows from operations. Which of the following factors most likely would cause a CPA to not accept a new audit engagement? A. B) The integrity of entity's management is suspect. Financial pressures affecting company personnel. You have determined that management is preoccupied with meeting specific profitability targets. cfw iwcso tamv stovl uglng dxnqjy opop vwlad ijoxtbx umaw