Last Updated on January 30, 2022 by Admin 3
Explanation:
Which of the following circumstances most likely would cause the auditor to suspect that there are material misstatements in the entity’s financial statements? Significant differences between the physical inventory count and the accounting records are not investigated. Which of the following circumstances most likely would cause an auditor to suspect that material misstatements exist in a client’s financial statements?Which of the following circumstances most likely will cause an auditor to suspect that material misstatements exist in a client’s financial statements? Differences between reconciliations of control accounts and subsidiary records are not investigated. What are the 3 audit risks?There are three primary types of audit risks, namely inherent risks, detection risks, and control risks. Which of the following procedures would a CPA likely perform during the planning stage of an audit?Which of the following procedures would a CPA most likely perform during the planning stage of the audit? Evaluate the reasonableness of management’s allowance for doubtful accounts. Determine areas where there is a higher risk of material misstatement. Evaluate the significance of uncorrected misstatements. Which of the following circumstances would most likely cause an auditor to suspect that material?Which of the following circumstances most likely would cause the auditor to suspect that there are material misstatements in the entity’s financial statements? Significant differences between the physical inventory count and the accounting records are not investigated. Which of the following circumstances most likely would cause an auditor to suspect that material misstatement exist in a client’s financial statements?Which of the following circumstances most likely will cause an auditor to suspect that material misstatements exist in a client’s financial statements? Differences between reconciliations of control accounts and subsidiary records are not investigated. Which characteristics would concern an auditor about the risk of material misstatements arising?The nature of the company; The company’s selection and application of accounting principles, including related disclosures; The company’s objectives and strategies and those related business risks that might reasonably be expected to result in risks of material misstatement; and. Under which circumstances is a misstatement material?A material misstatement is information in the financial statements that is sufficiently incorrect that it may impact the economic decisions of someone relying on those statements. What can cause misstatements in the financial statements?Which of the following circumstances most likely would cause the auditor to suspect that there are material misstatements in the entity’s financial statements? Significant differences between the physical inventory count and the accounting records are not investigated. What are risks of material misstatements?The nature of the company; The company’s selection and application of accounting principles, including related disclosures; The company’s objectives and strategies and those related business risks that might reasonably be expected to result in risks of material misstatement; and. What are 3 types of risk controls?Risk control methods include avoidance, loss prevention, loss reduction, separation, duplication, and diversification. What are examples of audit risks?The common cause of detection risk is improper audit planning, poor engagement management, wrong audit methodology, low competency, and lack of understanding of audit clients. What are the 5 audit risks?Risk elements are (1) inherent risk, (2) control risk, (3) acceptable audit risk, and (4) detection risk. What are the 3 main types of audits?There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits. External audits are commonly performed by Certified Public Accounting (CPA) firms and result in an auditor’s opinion which is included in the audit report. Which of the following procedures would a CPA most likely perform during the planning stage?Which of the following procedures would a CPA most likely perform during the planning stage of the audit? Evaluate the reasonableness of management’s allowance for doubtful accounts. Determine areas where there is a higher risk of material misstatement. Evaluate the significance of uncorrected misstatements. Which of the following procedures would a CPA most likely perform in the planning phase of a financial statement audit?Which of the following procedures would a CPA most likely perform in the planning stage of a financial statement audit? Compare recorded financial information with anticipated results from budgets and forecasts. Which of the following is one of the procedures in the planning phase of an audit?Which of the following is one of the procedures in the planning phase? Determine materiality. Determine need for other professionals. Prepare client proposal. What are the steps in planning the audit?Audit Process What causes material misstatement?Which of the following circumstances most likely will cause an auditor to suspect that material misstatements exist in a client’s financial statements? Differences between reconciliations of control accounts and subsidiary records are not investigated. What happens if an auditor finds a material misstatement?Factors that can increase the risk of material misstatement on a financial statement level include: Managerial incompetence. Poor oversight by the board of directors. Inadequate accounting systems and records. What are examples of risk of material misstatement?Which of the following circumstances most likely would cause the auditor to suspect that there are material misstatements in the entity’s financial statements? Significant differences between the physical inventory count and the accounting records are not investigated. Which of the following matters would an auditor most likely consider when establishing the scope of the audit?The nature of the company; The company’s selection and application of accounting principles, including related disclosures; The company’s objectives and strategies and those related business risks that might reasonably be expected to result in risks of material misstatement; and. Which characteristics would concern an auditor about the risk?In risk assessment, auditors consider the following risks:
What is the auditor required to identify and assess the risks of material misstatement?Having obtained and documented an understanding of the entity including its internal control, the auditor is now in a position to identify and assess the risks of material misstatement, which should be done at the financial statement level, and at the assertion level for classes of transactions, account balances and What is the risks of material misstatement?What is the Risk of Material Misstatement? The risk of material misstatement is the risk that the financial statements of an organization have been misstated to a material degree. Which of the following circumstances most likely would cause an auditor to suspect that there are material misstatements in an Entitys financial statements?Which of the following circumstances most likely would cause the auditor to suspect that there are material misstatements in the entity's financial statements? Significant differences between the physical inventory count and the accounting records are not investigated.
What are the 3 factors of audit risk?From an auditor's viewpoint, the three components of audit risk are inherent risk, control risk and detection risk.
Which of the following procedures would a CPA most likely perform during the planning stage?Which of the following procedures would a CPA most likely perform during the planning stage of the audit? Evaluate the reasonableness of management's allowance for doubtful accounts.
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