ACCT 5200 || WITH 100% VERIFIED SOLUTIONS.

What is evidence? correct answers - any information used by the auditor to determine whether the information being audited is stated in accordance with GAAP the two determinants of the persuasiveness of evidence correct answers appropriateness and suffciency appropriateness of evidence correct...

Materiality (definition) correct answers the magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on that information would have been changed or influenced by the omissio...

information risk correct answers the possibility that the information upon which the business risk decision was made was inaccurate causes: -remoteness of information -biases and motives of the provider -complexity -voluminous data cost of information risk is a factor in Cost of Capital; ...

preliminary audit planning correct answers -understand the client's business and industry -assess clients business risk -perform preliminary analytical procedures all of this happens before materiality is even set engagement letter correct answers A letter that formalizes the contract be...

sampling correct answers to apply an audit procedure to less than 100% of items in a population attributes sampling correct answers used to estimate the proportion of a population containing a certain characteristic, aka ATTRIBUTE for test of controls: look at control deviation for substan...

Revenue recognition criteria is outlined in correct answers Staff Accounting Bulletin 101 For revenue to be recognized: some persuasive ______________________________ has to exist, delivery has occurred or services have been __________, the sellers price to the buyer is fixed or ________________,...

Assurance Service correct answers -independent professional service that improves the quality of information for decision makers -Can be by CPAs or non-CPAs -Expresses a written or oral conclusion on reliability and relevance of information Committee of Sponsoring Organizations of the Treadway...

Ethics correct answers Deals with the concepts of right and wrong; standards of how people ought to act Morals correct answers Deals with manners, morals, character Values correct answers Basic and fundamental beliefs that guide or motivate attitudes or actions Nurse who refuses CPR to elde...

Internal control correct answers A process, effected by an entity's BOD, management, and other personnel Composed of policies and procedures designed to provide reasonable assurance that the company achieves its objectives in following: - Reliability of financial reporting - Effectiveness/e...

Operational Audits correct answers concentrates on seeking aspects of operations in which wastes could be reduced by the introduction of controls Endogenous demand for audit correct answers Audit is demanded by the actors of the economy itself, not a regulatory body Exogenous demand for audit ...

4 Steps in the Process of understanding controls correct answers (1) Obtain and document understanding of internal controls (2) Assess control risk (3) Design, perform, and evaluate tests of controls (4) decide planned detection risk and substantive tests Obtain and Document Understandin...

Perform additional tests for presentation and disclosure - Review for contingent liabilities - Review for subsequent events (post balance sheet review) - Accumulate final evidence and evaluate results - Issue audit report - Communicate with audit committee and management correct answers Steps to com...