As per APES 110, an auditor may Select one: perform advisory services for any
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- Which of the following may not be the possible sources of obtaining information in respect of client's business for the purpose of preparation of an audit plan? O a. Minutes of directors and shareholders of entity's competitors O b. Discussion of audit matters with an internal auditor OC. Discussions with client's lawyers O d. Predecessor auditor's working papersWhich of the following statements relating to internal and external auditors is correct? i) Internal auditors are required to be members of a professional body ii) Internal auditors’ scope of work should be determined by the management iii) External auditors are trusted by government agencies, investors, and public. iv) Internal auditors can never be independent of the company a. iii and iv b. i and iii c. i and ii d. ii and iiIf an auditor believes that an understanding with an audit client has not been established he or she should? State what should an auditor do and explain.
- Choose the correct.Which of the following is not a way by which the Sarbanes–Oxley Act attempts to ensure auditor independence from an audit client?a. The auditing firm must be appointed by the client’s audit committee.b. Audit fees must be approved by the Public Company Accounting Oversight Board.c. The audit committee must be composed of members of the client’s board of directors who are independent of the management.d. The external auditor cannot also perform financial information system design and implementation work.Which of the following actions would be considered as self-interest threats? Select which two options are correct. Select one or more: A. A member of the assurance team is a director of the client. B. An auditor acts as an advocate on behalf of an assurance client. C. An auditor has potential employment with an assurance client. D. One client provides a high percentage of total audit fees.Auditors must use their professional judgment_ O to distinguish if a misstatement or scope limitation is just material or pervasively material O to distinguish if a misstatement or scope limitation is just immaterial or pervasively material O to determine if the firm has the ability to pay the auditor for services rendered O in selecting the client's audit committee
- The auditor prepares the financial statements for DecoPaints SAOG while also serving as the auditor for DecoPaints SAOG Company. By having the auditor review his or her own work, the auditor cannot be expected to form an unbiased opinion on the financial statements. Which threat may occur when a previous judgment needs to be re-evaluated by the professional accountant responsible for that judgment? Intimidation threats Advocacy threats Self-review threats Self-interest threatsCharacteristics of auditing do not include: O a. Independent Examination O b. Objective of Expressing an Opinion on financial information O c. Applies to all types of entities O d. Done by the accountant of the entityA CPA audits the financial statements of an issuer. Which statement relating to CAMs is TRUE? a. If the auditor determines that no CAMs existed, the audit report includes a paragraph defining CAMs and stating that no Cams existed. b. CAMs are not required to be communicated to the TCWG (Audit Committee). c. CAMs usually alter the opinion on the financial statements. d. CAMs involve matters of most significance to the audit. e. The paragraph discussing a discovered CAM should not include how the CAM was addressed in the audit.
- Which of the following is not a way by which the Sarbanes-Oxley Act attempts to ensure auditor independence from an audit client? Multiple Choice The auditing firm must be appointed by the client's audít committee. The audit committee must be composed of members of the client's board of directors who are independent of the management. Audit fees must be approved by the Public Company Accounting Oversight Board. The external auditor cannot also perform financial information system design and implementation work.Which of the following is not a way by which the Sarbanes–Oxley Act attempts to ensure auditor independence from an audit client?a. The auditing firm must be appointed by the client’s audit committee.b. Audit fees must be approved by the Public Company Accounting Oversight Board.c. The audit committee must be composed of members of the client’s board of directors who are independent of the management.d. The external auditor cannot also perform financial information system design and implementation work.Professional skepticism is a. An attitude that includes a questioning mind. b. The auditor's application of relevant training, knowledge and experience. c. One of the professional code of ethics. d. Not necessary in auditing of the entity.
