The CPA's role in performing audits is important to our society because: an audit of financial statements helps investors and others know that they can rely on the information presented in the financial statements. O auditors have the primary responsibility for the information contained in the financial statements. O auditors issue reports on the accuracy of each financial transaction. Oauditors provide direct financial advice to potential investors.

The CPA's role in performing audits is important to our society because: an audit of financial statements helps investors and others know that they can rely on the information presented in the financial statements. O auditors have the primary responsibility for the information contained in the financial statements. O auditors issue reports on the accuracy of each financial transaction. Oauditors provide direct financial advice to potential investors.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter1: Quality Auditing: Why It Matters

Section: Chapter Questions

Problem 3CYBK

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Similar questions

Professional guidance indicates that the auditor should consider revenue recognition to be high risk in planning an audit of a company’s financial statements. a. Identify the activities that affect the revenue cycle. b. Identify the financial statement accounts typically associated with the revenue cycle.
Financial statements are based on generally accepted accounting principles (GAAP) and are audited by CPA firms. Do investors need to worry about the validity of those statements? Explain your answer.
The external auditor: Group of answer choices Tests the underlying transactions that form the basis of the financial statements. In this way, they may state that these statements show a true and fair view. Tests the underlying transactions that form the basis of the financial statements. In this way, they may ensure that these statements show a true and fair view. Tests the underlying transactions that form the basis of the financial statements. In this way, they may form an opinion on whether or not these statements show a true view. Tests the underlying transactions that form the basis of the financial statements. In this way, they may form an opinion on whether or not these statements show a true and fair view.
Financial statement are based on generally accepted accounting principles (GAAP) and are audited by CPA firms. Do investors need to worry about the validity of those statements? Explain
Explain the auditor's role in ensuring that rules and regulations are being followed. For laws and regulations that have a direct impact on financial reporting, how is this obligation different from other laws and regulations that have no direct impact on financial reporting?
Financial statement are based on generally accepted accounting principles (GAAP) and are audited by CPA firms. Do investors need to worry about the validity of those statements? Explain your answer.
The auditor has a responsibility to the various users of financial statements including shareholders, debtors, creditors etc. for ensuring the fairness of these statements. In this regard, the auditor is governed by an audit framework as well as a regulatory environment that includes standards. Also, the auditor performs a risk assessment so that the audit strategy is adapted for detecting fraud or error that can contribute to a material misstatement of these financial statements. Please evaluate the impact information technology can have on the audit process focusing on the risks associated with internal controls?
Analyze the risks associated with auditing accounts payable. Explain the process of auditing accounts payable using confirmations. Determine why third parties are important to the audit of debt and equity. How do auditors interact with third parties to gain audit evidence when auditing debt and equity? Why is it important that auditors determine if the client is complying with debt provisions?
Outline the reasons why auditor independence is considered of fundamental importance for confidence in financial statement auditing and evaluate the case for and against recent regulatory changes that affect the relationship between the auditor and the reporting company. Any help?
External auditors are obviously responsible for the audit of the financials. However what is their responsibility for the preparation of the financials?
Which of the following is a reason that an entity may receive an audit? Select the best response and then click "Submit". O The entity has publicly traded stock. O The entity is required by regulators. O The entity is required by its lenders. Management wants assurance around accounting procedures and to reduce the risk of fraud. O All of the above
Which of the following is the most important responsibility of the external auditor? a. To ensure that financial statements comply with applicable financial reporting framework b. To ensure compliance with laws and regulations applicable to the entity c. To design, implement and maintain a system of internal control d. To express an opinion on a true and fair view of the financial statements