12. The audit of revenue and receivables is of significant audit risk because Select one: a. The understatement of revenue results in a corresponding overstatement of net income b. Understatement of revenue has been a factor in many instances of fraudulent financial reporting c. Overstatement of revenue has been a factor in many instances of fraudulent financial reporting, d. The overstatement of revenue results in a corresponding understatement of net income

Q: Q11 Which of the following best describes the reason why independent auditors report on financial…

A: An Auditor main duties and responsibility to verify the firm financial data and other relevant…

Q: Members of the audit engagement team are required to discuss the susceptibility of the entity's…

A: Audit frauds are conducted to hide the actual position of the financial statements of the company to…

Q: . Inflated sales and bill-and-hold transactions. b.Bill-and-hold transactions and embezzlement of…

A: A Fraud Triangle is a framework that clearly indicates the motivation for an individual to commit…

Q: The auditor is not expected to, and cannot, reduce audit risk to zero and cannot therefore obtain…

A: Auditing is described as the on-site verification activity of a process or quality systems, such as…

Q: 17.Misstatements detected in the course of an audit of financial statements fall into three…

A: Misstatements are the errors that are made while preparing a financial statement that is there would…

Q: Determine if false financial reporting or misuse of assets has occurred. Compare and contrast the…

A: Generally, fraudulent financial reporting happens when an international deception occurs in the…

Q: The auditor is not expected to, and cannot, reduce audit risk to zero and cannot therefore obtain…

A: Auditor An auditor refers to the person who is responsible for reviewing the company’s financial…

Q: financial statement fraud with asset misappropriation

A: Financial statement fraud is a deliberate attempt to conceal actual financial information so as to…

Q: ervasive effects on the financial

A: Pervasive misstatements are misstatement in financial statements that affect the essence of…

Q: Distinguish between the terms errors and fraud. Distinguish between fraudulent financial reporting…

A: Answer 1) Fraud is an intentiional act Involving the use of deceptiion that results in a materiial…

Q: Which of the following statements is invalid relating to confirmation of accounts receivable?  a. A…

A: Solution: Positive confirmation means inquiry that requires response from customer confirming the…

Q: the susceptibility of an account balance or class of transactions to misstatements that could be…

A: Internal controls: Internal controls are maintained to decline the possibility of fraud. They ensure…

Q: f the auditor believes that a misstatement is or might be intentional and the effect on the…

A: Auditor: The auditor is the professional person who is appointed to conduct the official scrutiny of…

Q: If the auditor learns before he starts the audit that the client's company uses excess cash (surplus…

A:

Q: In auditing accounts receivable, the negative form of confirmations request is used when A. Response…

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: 8 Answer is not complete. a. Evaluating the effectiveness of the client's internal control in…

A: Risk Assessment: The  client’s internal  control  is evaluated to get the effectiveness of it. It is…

Q: susceptibility of fraud r

A: Option a is wrong because susceptibility denotes the possibility of fraud, not the occurrence of…

Q: 2. Whom should the auditors contact when they suspect a fraud? A. Either the senior management or…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: Financial audit Q&A What is the risk that arises because the auditor is unable to find misstatements…

A:

Q: If an auditor believes that a misstatement might be intentional and the effect on the financial…

A: c) If the auditors prepare the procedure and if check whether the fraud have taken place or going to…

Q: Why do you think auditors were not able to detect the fraud in their previous audit

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: 17 1. By providing reasonable level of assurance on audit reports on financial statements, the…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: f the auditor obtains sufficient evidence on a client's accounts receivable balance through…

A: EOM paragraph provide by the auditor when he wants to explain some audit procedures or matter that…

Q: . Identify from the following the situation/s where auditors are removed by the client. a. All the…

A: Solution: Following are the situations where auditors are removed by the client: 1. Involve in fraud…

Q: which of the following regarding errors is correct Select one: a. intentional misstatement of the…

A: The financial statements are said to reflect the correct and accurate picture of the company when…

Q: Q10 Which of the following best describes the reason why independent auditors report on financial…

A: Auditing: It is the independent examination of book of accounts of the company to ensure quality…

Q: Choose the one correct answer Which of the following statements is valid relating to confirmation…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: Generally, audit evidence cannot be obtained entirely through substantive procedures   True or…

A: Substantive procedures are the method or audit tests designed by an auditor to evaluate the…

Q: which of the following regarding errors is correct Select one: a. it is easier for the auditor to…

A: Ans. Errors can be of two types - i. Intentional error ii. Unintentional error Intentional errors…

Q: Which of the following statements is invalid relating to confirmation of accounts receivable?  a. A…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: If the audit report states that the financial statement is not free from material misstatements , it…

A: Audit report is the statement given by the auditor on the financial statements and reports of any…

Q: tch the type of risk with the related definition. A. Detection risk B. Control risk C. Inherent risk…

A: Solution:- 1. The probability that an auditor will give an inappropriate opinion on financial…

Q: 3. Which of the following is NOT part of the control activities applicable to Financial Statement…

A: Solution Concept Financial statement audit                 During the audit of the financial…

Q: Which of the following statements is true regarding assertions in the revenue cycle?     All five…

A: under normal audit risk conditions the occurrence assertion would be more relevant than the…

Q: 6. A major purpose of the audit is to give outsiders assurance that the financial statements are…

A: An audit is an independent examination of financial statements whether the underlying entity is…

Q: Under which clause of ISA, the auditor's responsibilities relating to prevention and detection of…

A: Auditor is the person who is responsible for audit work. Audit means examination or review of books…

Q: 19-Which among the following is the most important limitation of an audit, which result in most of…

A: External audit means the examination performed by an external party who is professionally qualified…

Q: Which one of the following statements is most appropriate to Control risk? Susceptibility of account…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: Question 30 If the auditor plans to assess control risk at less than the maximum and rely on…

A: Introduction:- The auditor intends to evaluate audit risks at a reduced level than highest and…

Q: The probability that, in the absence of internal controls, material errors or frauds could enter the…

A: Inherent risk :       As the name suggests, it is the risk which is inherent in the omission or…

Q: 27) Which of the following statements are True  i. The auditor has a responsibility to plan and…

A: The auditor has a responsibility to plan and perform the audit so as to obtain reasonable assurance…

Q: Question 25 When performing an audit of a public company, PCAOB standards do not require the…

A:

Q: Question 4 The  auditor of a large public company has determined that a material weakness exists in…

A: Introduction:- A major failure in the client's internal controls over financial reporting has been…

Q: Which of the following audit findings would be considered a deficiency in internal controls in the…

A: Deficiency in the internal control generally monitored by the internal auditors. Every transactions…

Q: 2. The auditors who find that the client has committed an illegal act would be most likely to…

A: When auditors discover that a client has engaged in illegal activity, they are more likely to leave…

Q: Question 23 Which of the following statements is correct regarding accounts payable and the…

A: Find your answer below:

Q: Q. According to ISA 200, Which of the following statement is true with respect of inherent…

A: Audit is the process of verifying and examining the books of accounts and financial information in…

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.