Which of the following conditions most likely would pose the greatest risk in accepting a new integrated audit engagement?
Which of the following conditions most likely would pose the greatest risk in accepting a new integrated audit engagement? Staff will need to be rescheduled to cover this new client.
Which of the following factors most likely would cause a CPA to not accept a new audit engagement?
Which of the following factors would most likely cause a CPA to decide not to accept a new audit engagement? Management’s disregard for internal control. Which of the following matters is generally included in an auditor’s engagement letter? Limitations of the engagement.
Which of the following circumstances is most likely to cause an auditor to consider whether a material misstatement exists *?
Which of the following circumstances is most likely to cause an auditor to consider whether a material misstatement exists? Transactions selected for testing are not supported by proper documentation.
What are the risks that the auditor must consider before accepting a client for an audit engagement?
Assuming independence and requisite technical abilities, the pre- acceptance evaluation of a prospective audit engagement normally focuses on three factors: 1) personal integrity of the prospective client’s management and principals, 2) presence of circumstances pointing towards unusual risks in the engagement or …
Which of the following most likely would give the most assurance concerning the valuation of accounts receivable?
Which of the following most likely would give the most assurance concerning the valuation assertion about accounts receivable? Assessing the allowance for uncollectible accounts for reasonableness.
Which of the following factors would most likely influence the form and extent?
The complexity and size of the entity will most likely influence the form and extent of the auditor’s documentation of an entity’s internal control environment.
Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement should be rejected?
Choice “b” is correct. A CPA cannot render an opinion on financial statements unless he or she has obtained sufficient appropriate audit evidence supporting that opinion. If such evidence were unlikely to be available, the CPA would most likely reject the potential audit engagement.
Which factor is most likely to increase an auditor awareness?
Diversity of experience, perspectives and expertise, as well as industry knowledge are also extremely important, particularly given the widening mandates of audit committees beyond financial reporting oversight.
Which of the following risk factors indicates an increased risk of misappropriation of assets?
Which of the following risk factors indicates an increased risk of misappropriation of assets? High turnover of senior management.
Which of the following circumstances most likely would cause an auditor to believe that material?
Which of the following circumstances most likely would cause an auditor to believe that material misstatements may exist in an entity’s financial statements? Accounts receivable confirmation requests yield significantly fewer responses than expected.
Which characteristics would concern an auditor about the risk?
In risk assessment, auditors consider the following risks:
- Fraud risk. …
- Economic, accounting risk, or other developmental risks. …
- Complex transactions. …
- Significant transactions with related parties. …
- Degree of subjectivity in measurement. …
- Non-routine transactions.
Which of the following is least likely a condition necessary for revenue recognition?
which of the following is least likely a condition necessary for revenue recognition? collection of cash is not required to recognize rev.
What factors should an auditor consider before accepting a company as an audit client?
Client acceptance evaluation should include General Considerations, Management Integrity, Management Commitment to GAAP, Management Internal Control Consciousness, Financial Strength of the Client, and Other Risk Factors.
What should an auditor do before accepting a client?
Before accepting an engagement to audit a new Service organization, the service auditor must perform their due diligence around the client acceptance process, anticipate acceptance issues, address the client risk, and perform risk acceptance procedures.
What are the two 2 pre conditions of an audit?
ISA 210 defines preconditions for an audit as follows: ‘The use 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 audit is conducted’.