Press "Enter" to skip to content

Start Searching the Answers

The Internet has many places to ask questions about anything imaginable and find past answers on almost everything.

What are the components of audit?

Top 5 Key Components Of Audit Planning Process

  • Resource planning and allocation. The first thing that your auditor will look into is the amount of time you are willing to provide them to carry out the complete audit process. …
  • Understanding internal control. …
  • Risk assessment. …
  • Materiality assessment. …
  • Identification of conflict of interest.

Which of the following is an example of a qualitative materiality factor?

Which of the following is an example of a qualitative materiality factor? The client is experiencing a slowdown in sales and is struggling to pay vendors on time. An attitude of professional skepticism means: any indicator of fraud is properly investigated.

Is performance materiality the same as tolerable misstatement?

Tolerable misstatement (performance materiality) is the base for determining the lower limit for individually significant items in the financial statements taken as a whole, ranging from 10 percent to 100 percent of tolerable misstatement, depending high risk or low risk respectively.

Which of the following activities is the responsibility of the auditor?

Auditors should perform the following activities to reduce risk: 1-perform procedures regarding the acceptance or continuance of the audit client relationship, 2-determine compliance with independence and ethical requirements, and 3-reach a contractual understanding with the client for the terms and conditions of the …

What does professional Scepticism mean?

To show professional scepticism means: having a questioning mind. being alert to anything that may indicate misstatement due to error or fraud. critically assessing audit evidence.

What is reasonable assurance in auditing?

The term “reasonable assurance,” as used in the interim auditing standards, describes the level of assurance auditors are required to obtain by performing audit procedures and evaluating the resulting audit evidence when expressing an opinion that the financial statements are fairly presented in conformity with GAAP.

What is meant by audit evidence?

Auditing evidence is the information collected for review of a company’s financial transactions, internal control practices, and other items necessary for the certification of financial statements by an auditor or certified public accountant (CPA).

What is the role of professional skepticism in auditing financial statements?

Professional skepticism is an essential attitude that enhances the auditor’s ability to identify and respond to conditions that may indicate possible misstatement. It includes a critical assessment of audit evidence. … This critical assessment is necessary in order for the auditor to draw appropriate conclusions.

What are the objectives of auditing?

The objective of an audit is to form an independent opinion on the financial statements of the audited entity. The opinion includes whether the financial statements show a true and fair view, and have been properly prepared in accordance with accounting standards.

What are the six elements of professional skepticism describe two of those six elements?

Describe two of those six elements. What are the six elements of professional skepticism? (1) Questioning mindset; (2) Suspension of judgment; (3) Search for knowledge; (4) Interpersonal understanding; (5) Autonomy; and (6) Self-esteem.