Auditing

1. Which is better, statistical sampling or nonstatistical sampling? Why? 2. Should Generally Accepted Auditing Standards prescribe specific risk levels that auditors must use? Why or why not?

First Auditing Multiple Choice Questions

1. Which of the following factors most likely would cause a CPA to not accept a new audit engagement? a. The prospective client has already completed its physical inventory count b. The CPA lacks an understanding of the prospective client’s operations and industry c. The CPA is unable the review the predec ...continues

Second Auditing Multiple Choice Questions

11.When obtaining an understanding of an entity’s internal control procedures, an auditor should concentrate on the substance of the procedures rather than their form because a. The procedures may be operating effectively but may not be documented b. Management may implement procedures whose costs exceed their benefi ...continues

Third Auditing Multiple Choice Questions

20. Sound internal control procedures dictate that defective merchandise returned by customers should be presented initially to the a. Accounts receivable supervisor. b. Receiving clerk. c. Shipping department supervisor. d. Sales clerk. 21. If a control total were computed on each of the f ...continues

Auditing - Public role of auditors in America

In a discussion between Peters and Ferrel, Two auditing students, Peters made the following statement: “A CPA is a professional person who is licensed by the state for the purpose of providing an independent expert opinion on the fairness of financial statements. To maintain an attitude of mental independence and objectivity in ...continues

Internal Control

•Research current periodicals and journals (between 2005 and 2007-published year,) : You pick one article related to Internal Control. -> not too long article •Prepare your summary (2 pages ->see below) based on your research. (You need to consider the summary contents as the form of presentation skills) You have to attach ...continues

Auditing

12.48 Departures from GAAP. On January 1, Graham Company purchased land (the site of a new building) for $100,000. Soon thereafter, the Highway Department announced a new feeder roadway route that would run alongside the site. The effect was a dramatic increase in local property values. Nearby comparable land sold for $700,000 i ...continues

Five Discussion Questions for Auditing - ethics, regulation, integrity

1. How much should the government regulate the CPA profession? 2. Given the recent accounting scandals, how much confidence should the public really have in financial statement audits? 3. Are audits as important for internal managers as they are for outside investors? Why or why not? 4. In light of recent audit failures, are ...continues

Why should high risk audit clients for high audit fees be avoided?

Explain how the acceptance of large, high-risk audit clients for relatively high audit fees may threaten an audit firm's de facto and perceived independence. Under what circumstances should such prospective clients be avoided?

How is an auditor's examination affected when a client engages in significant related party transactions?

How is an auditor's examination affected when a client engages in significant related- party transactions? What measures should an auditor take to determine that such transactions have been properly recorded by a client?