susceptibility of fraud r
Q: Write a memo to Mr Mika discussing the audit objective and an auditor's responsibility in detecting…
A: Fraud can be defined as an intentional misstatement or misrepresentation of facts by the company or…
Q: 20. Below is an internal control associated with some financial statement audit cycle that the…
A: Internal controls are the procedures, rules and system which is established by the company to…
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: The essence of the audit function is to: Select one: a. Examine individual transactions so that…
A: Audit simply means to examine as to whether the financial statements of the entity are free from…
Q: An audit opinion of a company’s fi nancial reports is most likely intended to:A . detect fraud.B .…
A: Audit opinion: The opinion present by an auditor of findings of the audit examination is known as…
Q: When planning to perform an audit, an accountant must have a clear understanding of audit risk and…
A: Audit risk It is the risk that financial statements are materially incorrect, even though financial…
Q: From the following statements, identify the statement/s that will not participate in the audit of an…
A: Bank Reconciliation Statement The purpose of preparing the bank reconciliation statement to know the…
Q: t kind of report must an auditor submit
A: Persuasive audit evidence enables the auditor to express audit opinion without confusions.
Q: 1) To obtain reasonable assurance about whether the financial statements as a whole are free…
A: Question 1: Answer is a In Financial statement the auditor has to express a fair opinion of audit,…
Q: Which of the following statements best describes auditors’ responsibility for detecting a client’s…
A:
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: Which of the factors below is NOT one of the purposes of the audit report? A. Indicate any scope…
A: The management of the company is the main responsible for preparing the financial statements which…
Q: 4. a) The primary responsibility for the prevention and detection of fraud rests with both those…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following types of audit evidence provides the least assurance of reliability?
A: Answer: Option B
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: In accordance with ISA 315, the auditor shall identify and assess the risks of material misstatement…
A: ISA 315 -IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING…
Q: egarding the confirmation of accounts payable is true? Group of answer choices The confirmation of…
A: it is important to understand the client account payable and account receivable valences in order to…
Q: Which of the following statements is correct with regards to the auditor's responsibility concerning…
A: The answer is option (c) [ The auditor is responsible for obtaining reasonable assurance that the…
Q: Which of the following control objectives would be least likely be considered by the internal…
A: Option 1 This will be considered by the auditor in drafting the audit procedures as it can lead to…
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: SAS No. 99 (now PCAOB AS 2401) states that the auditor has the responsibility to plan and perform…
A: Professional skepticism is the attitude of critically identifying and assessing the audit evidence
Q: Select the correct answer(s) for the following multiple choice questions. Note that there may be…
A: SAS No.99: SAS No.99 stands for Statement on Auditing Standards No.99: Consideration of Fraud. It is…
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: 32. Which of the following statements best describes the competency requirement for an auditor…
A: Auditor is the person who is responsible for examining and verifying books of account and financial…
Q: ISA 240 the Auditor’s responsibilities relating to Fraud in an audit of financial statements,…
A: Part (i): The purpose is what distinguishes fraud from error. In s imple terms, fraud is a…
Q: An auditor's engagement letter most likely would include a statement regardıng: 1. Conditions under…
A: Auditing involves an independent examination of financial records of an entity with a view to…
Q: Accounting Which of the following statements is true regarding the identification and assessment of…
A: While undertaking audit for a client, auditor shall try to identify the potential areas of risk to…
Q: Questions - Images to these questions are attached below. (a) Recommend SIX tests of controls the…
A: (a) Test of control Objective of the test The auditor should attempt to verify the validity of…
Q: With respect to fraudulent financial reporting, which one of the following statements is not…
A: Auditor can obtain reasonable assurance only, not an absolute assurance.
Q: In forming the auditor’s opinion, the auditor is required to obtain reasonable assurance about…
A: Reasonable Assurance: When it comes to major misstatements, reasonable assurance is a high degree of…
Q: Write a memo to Mr Mika discussing the audit objectives and an auditor's responsibilities in…
A: Auditor's objectives regarding Fraud in an audit of financial statements : The primary objective of…
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: Which of the following circumstances would most likely cause an auditor to suspectthat material…
A: Audit Planning: For efficient performance of auditing, the auditor must plan the work with gaining…
Q: QUESTION 22 Match the term on the left with the appropriate definition or description on the left.…
A: An audit is when an auditor examines or inspects numerous accounting records, accompanied by a…
Q: will not participate in the audit
A: The scope of audit include verification of books and accounts to ensure they are free from material…
Q: The following questions concern the auditor’s responses to thepossibility of fraud.a. When fraud…
A: Auditor's responses should focus on how the groups will obtain will acquire proof to lessen the…
Q: perform in auditing
A: The statement S1 is true because the auditors plan the substantive procedures based on the result of…
Q: Select from the following the main object of an audit. a. Expression of expert opinion b. Detection…
A: Audit means checking and verifying the authenticity of financial statements by examining them. It…
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 two of the following characterize the work of fraud examiners?a. Analysis of control…
A: Audit: Audit is the process of verification of the compliance of the financial statements. It…
Q: Which of the following statements describes why a properly designed and executedaudit may not detect…
A: Auditing: Auditing is the process by which assertions made by management about financial…
Q: Which of the following is/are the least persuasive type of audit evidences? 1. Photocopies of sales…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : Audit…
Q: b. Management is secondarily responsible for prevention and detection of fraud
A: The following factors are responsible for fraud to occur in an organization: Pressure- Pressure can…
Q: Which of the following substantive procedures should auditors ordinarily perform regarding…
A: The question is multiple choice question. Required Choose the Correct Option.
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- Question 19 If an auditor believes that a misstatement might be intentional and the effect on the financial statements could be material the auditor should do which of the following? Resign from the engagement Discuss with the audit committee what should be done to prevent possible future future misstatements. Perform additional procedures to obtain additional evidence to determine whether fraud has occurred or is likely to have occurred and whether there is a material impact on the financial statements. Contact local authorities.29-Members of the audit engagement team are required to discuss the susceptibility of the entity's financial statement due to fraud. The susceptibility of fraud refers to_ O a. None of the options O b. Likelihood of fraud in the financial statement O c. Pre-existing fraud in the financial statements O d. Non-deliberate misstatement of financial statements{Auditing} 20. The audit is done to assure the users of the financial statements that all the financial information is properly and completely presented in the financial reports that depicts true and fair view of the entity supported by sufficient and reliable evidence.What kind of report must an auditor submit if he is not able to obtain audit evidence of possible material misstatement that is pervasive? a. He can form qualified opinion b. Disclaimer of opinion c. None of the options d. He can form unmodified opinion
- Select the correct answer(s) for the following multiple choice questions. Note that there may be more than one correct answer. SAS No. 99 requires auditors to: Understand fraud and why it is committed. Due to confidentiality concerns, limit discussion among audit team members of how and where the company’s financial statements have been susceptible to fraud in prior years. Identify, assess, and respond to risks by varying the nature, timing, and extent of audit procedures. Evaluate the results of their audit tests to determine whether misstatements indicate the presence of fraud. Document and communicate findings to the general public. Limit the use of technology in the audit due to management’s ability to change or manipulate electronic records. honesty2. Whom should the auditors contact when they suspect a fraud? A. Either the senior management or the audit committee B. Senior management C. Audit committee of the board of directors D. Expected perpetrators of the fraudwhom should the auditors contact when they suspect a fraud? a. senior management b. audit committee of the board o directors c. expected perpetrators of the fraud d. either the senior management or the audit committee
- 40-In accordance with ISA 315, the auditor shall identify and assess the risks of material misstatement due to fraud at which one of the following level s of management assertions? O a. All the levels O b. Assertion level for classes of transactions O c. Financial statements level assertions O d. Account balances level assertionsChapter 10: Assessing and Responding to Fraud Risks Assessing the risk of fraud in a financial statement audit is a difficult audit judgment. Auditing standards require the auditor to perform several audit procedures to accumulate information to assess the risk of fraud. You are the in-charge auditor responsible for planning the financial statement audit of Spencer, Inc. Two new staff auditors are assisting you with the initial audit planning and have asked you the questions below. Please summarize your responses to these staff auditor questions: a. What is the purpose of the audit team's brainstorming session? b. Who should attend the brainstorming session and when should the session be held? c. What is the role of the two staff auditors in the brainstorming session? d. What is the auditor's responsibility under auditing standards for detecting fraud? e. What must the auditor document in the working papers related to the brainstorming session?32 Which of the following statements regarding the confirmation of accounts payable is true? Group of answer choices The confirmation of accounts payable must be done exclusively by the internal audit staff. The confirmation of accounts payable is an important method of establishing the existence of unrecorded accounts payable. The confirmation of accounts payable contributes little or nothing in determining unrecorded accounts payable exist. The confirmation of accounts payable must be done exclusively by the independent auditor.
- Question 34 If the auditor believes that a misstatement is or might be intentional and the effect on the financial statements could be material or cannot be readily determined, the auditor should do which of the following? Inquire of management as to the possibility of fraud Discuss with the audit committee what shoud be done to prevent possible future misstatements. Perform procedures to obtain additional evidence to determine whether fraud has occurred or is likely to have occured. None of the answers presented9. . _________ is an unintentional misstatement that can be found in a financial statement during the audit. Question 9 options: a) Fraud b) Excess detail c) Assessment d) ErrorTrue or false: 1. Auditors use substantive analytical procedures and tests of details of balances to satisfy plannedcontrol risk 2. The Securities and Exchange Commissions will set up the Office of the Whistleblower sometime inthe near future in an effort to combat fraud and offer monetary rewards for being a whistleblower 3. Transactions with related parties must be disclosed in the financial statements if they are deemed tobe material.
