matters auditor communicate charged governance

Which of the following matters will an auditor most likely communicate to those charged with governance?

  • School Harvard University
  • Course Title MARKETING 69
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74.Which of the following matters will an auditor most likely communicate to thosecharged with governance?A.The level of responsibility assumed by management for the preparation of thefinancial statements.B.The effects of significant accounting policies adopted by management inemerging areas for which there is no authoritative guidance.C.A list of negative trends that may lead to working capital deficiencies andadverse financial ratios.D.Difficulties encountered in achieving a satisfactory response rate from theentity's customers in confirming accounts receivables.

75.Which of the following matters is an auditor required to communicate to thosecharged with governance?I.Disagreements with management about matters significant to the entity's financialstatements that have been satisfactorily resolved.II.Material weaknesses in internal control.

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Franklin Company is a medium-sized manufacturer of bicycles. During the year a new line called "Radical" was madeavailable to Franklin's customers. The break-even point for sales of Radical is $250,000 with a contribution marginratio of 40 percent. Assuming that the profit for the Radical line during the year amounted to $80,000, total salesduringtheyearwouldhaveamountedto:

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C. $400,000.D. $475,000. CHAPTER 4The Financial Statement Audit: Client Acceptance and Planning1. In assessing whether to accept a client for an audit engagement, an auditor should consider theI.Client’s business riskII.Auditor’s business risk

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Terms in this set (7)

Which of the following matters is an auditor required to communicate to those in the entity charged with governance?
I. Disagreements with management about matters significant to the entity's financial statements that have been satisfactorily resolved
II. Initial selection of significant accounting policies in emerging areas that lack authoritative guidance
A. I only.
B. II only.
C. Both I and II.
D. Neither I nor II.

C

Which of the following matters will an auditor most likely communicate to those charged with governance?
A. A list of negative trends that may lead to working capital deficiencies and adverse financial ratios.
B. The level of responsibility assumed by management for the preparation of the financial statements.
C. Difficulties encountered in achieving a satisfactory response rate from the entity's customers in confirming accounts receivables.
D. The effects of significant accounting policies adopted by management in emerging areas for which no authoritative guidance exists.

D

Which of the following matters should an auditor communicate to those charged with governance?
A. The basis for assessing the risks of material misstatement when the auditor intends to rely on controls.
B. The process used by management in formulating sensitive accounting estimates.
C. The auditor's preliminary judgments about materiality levels.
D. The justification for performing substantive procedures at interim dates.

B

Which of the following disagreements between the auditor and management do not have to be communicated by the auditor to those charged with governance?
A. Disagreements regarding management's judgment about accounting estimates for goodwill.
B. Disagreements about the scope of the audit.
C. Disagreements in the application of accounting principles relating to software development costs.
D. Disagreements of the amount of the LIFO inventory layer based on preliminary information.

D

An auditor should communicate misstatements to those charged with governance
A. If they were not recorded before the end of the auditor's field work.
B. If they are uncorrected.
C. If they are immaterial and corrected but frequently recurring.
D. Even if they are clearly trivial.

B

In an audit engagement, should an auditor communicate the following matters to those charged with governance?

Auditor's Judgments
About the Quality
of the Client's
Accounting Principles

Issues Discussed with Management prior to the Auditor's Retention

A.
Yes
Yes
B.
Yes
No
C.
No
Yes
D.
No
No

A

An auditor is most likely to communicate to those charged with governance that
A. The turnover in the accounting department was unusually high.
B. The auditor encountered significant difficulties during the audit.
C. The auditor discovered subsequent events.
D. Management agreed with the auditor's assessed risks of material misstatement.

B

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Which of the following items should an auditor communicate to those charged with governance in a publicly traded company?

Which of the following items should an auditor communicate to those charged with governance in a publicly traded company? Significant unusual transactions, critical estimates, and management's consultation with other accountants about significant accounting matters.

What matters should be communicated to those charged with governance following the conclusion of the audit?

11 The auditor should communicate with those charged with governance an overview of the planned scope and timing of the audit, which includes com- municating about the significant risks identified by the auditor.

What should be communicated to those charged with governance?

The communication to those charged with governance should not just contain findings from the audit, but should cover the range of issues related to the audit, which the auditor may want to raise with management.

What must auditors of public companies report to those charged with governance?

What must auditors of public companies report to those charged with governance? The items to be communicated are organized into three categories: the auditor's responsibilities under generally accepted auditing standards, an overview of the planned scope and timing of the audit, and significant findings from the audit.

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Which of the following matters is an auditor required to communicate to those charged with governance audit committees at the conclusion of the audit?

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