An auditor may achieve audit objectives related to particular assertions by
An auditor may achieve audit objectives related to particular assertions by. -Meet PCAOB requirements that analytical procedures be performed relating to every major account. Meet PCAOB requirements that analytical procedures be performed relating to every major account. c. 02 The objective of an audit of a financial report is to enable the auditor to express an opinion whether the financial report is prepared, in all material respects, in accordance with an identified financial reporting framework. D) Increasing the level of detection risk. B. increasing the level of detection risk Study with Quizlet and memorize flashcards containing terms like Which is not a financial statement assertion made by management. Performing analytical procedures b. files has allowed audit strategies where the auditor can target procedures on high-risk subpopulations. In case of assertions whose ROMM has been assessed as significant and no tests of control are planned to be performed, the substantive procedures should include tests of detail (i. Option1 is correct. Study with Quizlet and memorize flashcards containing terms like An internal auditor's work would most likely affect the nature, timing, and extent of an independent CPA's auditing procedures when the internal auditor's work relates to assertions about the:, If an auditor performs an inspection of documentation supporting a client's account balances, he or she would most likely be testing any that may exist. , all items in the income statement are assured to be complete and accurate, etc. -Increase the level of detection risk. . Analytical procedures are used for the following purposes: To assist the auditor in planning the nature, timing, and extent of other auditing procedures. increasing the level of detection risk. In addition, in performing risk assessment procedures, the auditor may obtain audit evidence about the relevant assertions related to classes of transactions, account balances, or dis- An auditor may achieve audit objectives related to particular assertions by: A) Performing analytical procedures. Study with Quizlet and memorize flashcards containing terms like Financial statement assertions include:, An internal auditor's work would most likely affect the nature, timing, and extent of an independent CPA's auditing procedures when the internal auditor's work relates to assertions about the:, While performing tests of details on client's investment transactions, the auditor's test starts The auditor's reliance on substantive tests to achieve an audit objective related to a particular assertion fn 1 may be derived from tests of details, from analytical procedures, or from a combination of both. Whether you’re using accounting software or recording transactions in multiple ledgers, the audit assertion process remains the same. Achieve audit objectives related to a particular assertion. To comply with the SEC c. (4) Increase the level of detection risk. Increasing the level of detection risk. 8 For some assertions, SAPs may provide persuasive audit evidence to address the auditor’s assessed risk. More For You What Is Included For example, computer-assisted audit techniques may be used to test automated controls or data related to assertions. e. For example, the auditor may choose to combine the assertions about transactions and events with the assertions about account balances. Preparing audit documentation. The decision about which procedure or procedures to use to achieve a particular audit objective is based on the auditor's judgment on An auditor may achieve audit objectives related to particular assertions a. 14. Substantive tests are performed to identify material misstatements at the assertion level. 4. physical examination by the auditor. D. 2 Audit evidence, which is cumulative in nature, includes audit evidence obtained from audit procedures performed during the course of the audit and may include audit evidence obtained from other sources, such as pre-vious audits and a firm's quality control procedures for client acceptance and continuance. The main objective of the work performed by the auditor in an audit engagement is that of obtaining reasonable assurance as to whether the financial statements, as a whole, are free from material misstatement, so that the auditor is able to express an opinion on the financial statements and report accordingly in the auditor’s report. A. C) Preparing audit documentation. C) Analytical procedures have revealed no unusual or unexpected results. Adhering to a system of quality control Which of the following explanations best describes why an auditor may decide to reduce tests of details for a particular audit objective? A) The audit is being performed soon after the balance sheet date. An auditor may achieve audit objectives related to particular assertions by: a. 2 Financial statements assertions. C. Increasing the level of detection risk Study with Quizlet and memorize flashcards containing terms like when an analytical procedure is used as the principal substantive test of a significant financial statement assertion, the auditor is required to, the most likely analytical review procedure involving costs and expenses would be to compare, the auditor relies on substantive tests to achieve and more. Audit Objectives; Audit objectives are the specific goals that the auditor has to accomplish in relation to the audit assertions. (3) Meet PCAOB requirements that analytical procedures be performed relating to every major account. A Chapter 7 Overview of the Financial Audit Process D. Obtain evidence from details tested to corroborate particular assertions B. adhering to a system of quality management. Oct 7, 2023 · Performing analytical procedures may help an auditor to achieve audit objectives related to a particular assertion and develop an effective system of quality control. adhering to a system of quality control c. The correct statement is (1) Achieve audit objectives related to a particular assertion. Jul 29, 2022 · An auditor may achieve audit objectives related to particular assertions by A. performing substantive tests b. g. 8. Increasing the level of detection risk (11/95, AUD, #38, ID: 5985) Jul 29, 2022 · An auditor may achieve audit objectives related to particular assertions by A. Jan 15, 2021 · An auditor may achieve audit objectives related to particular assertions by Performing analytical procedures. Analytical procedures are one type of substantial procedure that the auditor could perform-I is wrong, Audit documentation is used to record the results of audit procedures that have been performed to achieve audit objectives. -Develop an effective system of quality control. S1 – The auditor shall design and perform analytical procedures near the end of the audit that assist the auditor when forming an overall conclusion as to whether the financial statements are consistent with the auditor’s understanding of the entity. d. (2) Develop an effective system of quality control. Mar 10, 2024 · An auditor may achieve audit objectives related to particular assertions by A. Question: Performing analytical procedures may help an auditor to:Multiple ChoiceIncrease the level of detection risk. An auditor may achieve audit objectives related to particular assertions by A. , Which of the following business characteristics is not indicative of high inherent To gather corroborative audit evidence about management’s assertions regarding the client’s financial statements d. Performing analytical assertions b. The assertion is that the The primary objective of final analytical procedures is to: A. Get a hint. Evidence gathered by auditors must be both valid and relevant to be considered appropriate. docx from ACCT 405 at Boise State University. Also, the auditor may use other automated tools or reports produced by IT to test the operating effectiveness of general controls, such as program change controls, access controls, and system software controls. Management assertions fall into the following three classifications. preparing auditor working papers. 26 provides illustrative audit objectives for inventories of a manufacturing company for each of the broad categories of assertions listed in paragraph . . Transaction-Level Assertions. Types of assertions An audit assertions graph showing various Performing analytical procedures may help an auditor to: Meet PCAOB requirements that analytical procedures be performed relating to every major account. Develop an effective system of quality control. (2) Develop an effective system of quality control. Paragraph . b. Identify areas that represent specific risks relevant to the audit C. Audit evidence and the objectives of an audit. (3)Valuation of assets and liabilities. See full list on pcaobus. A company sells a product only in the last month of its fiscal year. (4)Effectiveness of internal control. Audit Chapter 5. Relevant to Foundations in Audit (FAU) and Audit and Assurance (AA) This article will focus on assertions as identified by ISA 315 (Revised 2019) and also provides useful guidance to candidates on how to tackle questions dealing with these. B) Adhering to a system of quality control. 11. Answer (a) is correct because an auditor may perform analytical procedures to achieve an audit objective related to a particular assertion. An auditor may achieve audit objectives related to particular assertions by . Explanation: Analytical procedures play a vital role in the audit process , helping auditors assess the reasonableness of financial information and achieve An auditor may achieve audit objective related to particular assertions by a from BUSINESS A 101 at University of the East, Manila When performing an audit, it is the auditor’s job to obtain the necessary evidence to verify the assertions made in the financial statements. 21. Develop an effective system of quality control. 01 This section addresses the independent auditor's overall responsibili-ties when conducting an audit of financial statements in accordance with gen-erally accepted auditing standards (GAAS). The audit of assertions. Performing analytical procedures may help an auditor to: A. Aug 15, 2024 · (1) Achieve audit objectives related to a particular assertion. a) Achieve audit objectives related to a particular assertion. such procedures may be used by the auditor as audit evidence to support as-sessments of the risks of material misstatement. The processes involved in establishing objectives and the scope of an audit are critical and there are IPPF standards for each (Standard 2210 – Engagement Objectives and 2220 – Engagement Scope) that provide guidance for both assurance and consulting engagements. Objective of an Audit . preparing auditor working papers d. Meet PCAOB requirements that analytical procedures be preformed relating to every major account. The correct option is (1) achieve audit objectives related to a particular assertion. The objective of audit testing is to assist the auditor in coming to a conclusion as to whether the financial statements are free from material misstatement. 24. (4) Increase the level of detection risk. Dec 17, 2023 · The auditors test the validity of these assertions by conducting a number of audit tests. 32. substantive analytical procedures alone cannot be considered as sufficient and appropriate audit evidence for assertions Standards on Audit and Audit Related Services”. Audit Programs Audit program–states the audit procedures that the auditor believes are necessary to accomplish the objectives of the audit. Apr 30, 2022 · An auditor may achieve audit objectives related to particular assertions by - 27913623 Mar 30, 2023 · achieve an audit objective related to a particular assertion may be derived from tests of details, from SAPs, or from a combination of both. However, the auditor does not simply design tests with the broad objective to identify material misstatement. The audit program also documents audit strategy. An auditor may achieve audit objectives related to particular assertions by performing analytical procedures In addition to evaluating the frequency of deviations in tests of controls, an auditor should also consider certain qualitative aspects of the deviations. 22. Answer (b) is incorrect because a system of quality control provides the CPA firm with reasonable assurance of conforming with professional standards. An auditor may achieve audit objectives related to particular assertions by: A. Scope of This Section. Adhering to a system of quality control. (3) Meet PCAOB requirements that analytical procedures be performed relating to every major account. Meet PCAOB requirements that analytical procedures be performed relating to everymajor account. Analytical procedures performed near the end of the audit to assist the auditor in forming an overall conclusion on the financial statements are aimed primarily at: a) Gathering evidence concerning account balances that have not changed from the prior year. On the II only The auditor relies on substantive tests to achieve audit objectives related to particular assertions. Assist the auditor in assessing the validity of the conclusions reached on the audit D. performing analytical procedures. 03 and examples of substantive tests that may achieve those audit objectives. 15. An auditor may achieve audit objectives related to particular assertions by. Preparing auditor working papers. An auditor may achieve audit objectives related to particular assertions by a from ACG ACG-4651 at University of North Florida Questions on assertions may often be included in the objective test questions (OTs) in the AA and FAU exams and may also appear in the constructed response questions where candidates may be required to demonstrate knowledge of the assertions and procedures that are linked to particular transaction or account balance assertions in more detail. Increase the level of detection risk. B) Audit staff are experienced in performing the planned procedures. The most reliable type of audit evidence that an auditor can obtain is A. To gather corroborative audit evidence about management’s assertions regarding the client’s financial statements d. Performing analytical procedures may help an auditor to: Achieve audit objectives related to a particular assertion. As a substantive test to obtain evidential matter about particular assertions related to account balances or classes of transactions. Question: . An auditor may achieve audit objectives related to particular assertions by Performing analytical procedures. An auditor may achieve audit objectives related to particular assertions by a. Adhering to a system of quality control c. To determine the amount of errors in the balance sheet accounts in order to adjust the accounts to actual. Performing analytical procedures may help an auditor to:-Achieve audit objectives related to a particular assertion. The moment the financial statements are produced, the assertions or the claims of management also exist, e. Satisfy doubts when questions arise about an entity's ability to continue in existence An auditor may accomplish a particular objective by inspecting documents, questioning knowledgeable sources, or recalculating the accuracy of figures in the records. org Introduction. adhering to a system of quality control. Achieve audit objectives related to a particular assertion. For other assertions, it may be necessary for the auditor to obtain Audit assertions, financial statement assertions, or management’s assertions, are the claims made by the management of the company on financial statements. An auditor may achieve audit objectives related to particular assertions by: Performing analytical procedures. Preparing auditor working papers d. Mere Mar 18, 2024 · An auditor may achieve audit objectives related to particular assertions by a. Apr 12, 2021 · (Answer (a) is correct because an auditor may perform analytical procedures to achieve an audit objective related to a particular assertion. The following five items are classified as assertions related to transactions, mostly in regard to the income statement: Accuracy. Performing analytical procedures may help an auditor to:(1) Achieve audit objectives related to a particular assertion. a. that there is a lower risk that a material misstatement may occur because of the particular characteristics of a class of transactions (without consideration of the related controls), the auditor may determine that substantive analyti-cal procedures alone may provide sufficient appropriate audit evidence. Analytical procedures may be effective and efficient tests for assertions. (2)Completeness of recorded assets and liabilities. View Section E Practice Exam. Performing analytical procedures. Audit assertions and audit objectives should be congruent with one another. (1)Existence of recorded assets and liabilities. Performing analytical procedures may help an auditor to achieve audit objectives related to a assertion. In selecting particular substantive tests to achieve the audit objectives he or she has developed An auditor may achieve audit objectives related to particular assertions by: a. gufgjechebcgmizrzrwjpgsrazgdsfbuhuuzdnomfwcwuarwph
