in creating lead schedules for an audit engagement

What is the nature of the three generally accepted auditing standards classified as standards of field work? Tests of controls. Appropriate evidence supporting management's assertions should be convincing rather than persuasive. D. Occurrence, rights and obligations, completeness, classification and understandability, accuracy and valuation. B. Include a list of items or invoices that constitute the customers account balances. B. Completeness. B. According to Conduct Rule 502, advertising or other forms of solicitation that are false, misleading, or deceptive are not in the public interest, and AICPA members in public practice shall not seek to obtain clients in such a manner. Relationships involving balance sheet accounts. Existence or occurrence. A. C. Audit documents may be regarded as a substitute for the company's accounting records. Which of the following matters does the auditor and management agree upon at this time? Such activities include all the following except those that. C. Reliability of audit evidence refers to the amount of corroborative evidence obtained. C. Rights and obligations. A. Tracing transactions through the system to determine whether procedures are being applied as prescribed. The ISAs do not differentiate between violations of laws and regulations having direct and indirect effects. C. Audit plan. documentation software. D. A working paper prepared by the entity's controller and reviewed by the entity's treasurer. B. D. Statement of Cash Flows. In the Grouping content field, use the Insert Formula button or the drop down menu to select one or more codes or subcodes. . A. C. Tests of ratios. Ledger entries. In creating lead schedules for an audit engagement, a CPA often uses automated audit. C. Company's year-end date. The company uses commission agents for such sales and pays them 6% of their net sales 30 days after the sales are made. Quick assets divided by accounts payable. Lead schedules are summaries of detailed schedules. For example, encryption, electronic signatures, or procedures to verify website authenticity may be used. D. All of these. Which of the following is required for a CPA firm to designate itself as Members of the American Institute of Certified Public Accountants on its letterhead? In creating lead schedules for an audit engagement, a CPA often uses automated work paper software. Audit documentation may not contain readily observable details of calculations. Below is a list of items to consider for the checklist: 1. Observe the entity's distribution of payroll checks. D. Preparation be the responsibility of assistants whose work is reviewed by seniors, managers, and partners. Accounting records by themselves do not provide sufficient appropriate evidence. D. Audit documents should be designed to facilitate the review and supervision of work done by auditors assigned to the engagement. B. The auditor gathers audit evidence to test management's assertions. Our continued learning packages will teach you how to better use the tools you already own, while earning CPE credit. Audit documents that record the procedures used by the auditor to gather evidence should be A. Since the primary concern is whether equipment remaining on the records as assets has been retired, the auditor would2, 1 Select items of equipment from the accounting records for testing, 2) these equipment items would be located in the plant andDetermined if they are still in use, When equipment remains on the records as an asset when it has been retired this results in, Inspecting certain items of equipment in the plant and tracing those items to the accounting records are tests of completeness, which would show if the equipment account is, A weakness in internal control over recording retirements of equipment may cause an auditor to, Select certain items of equipment from the accounting recordsAnd locate them in the plant, If a difference of opinion on a practice problem existed between engagement personnel and a specialist or other consultant, was the difference resolved in accordance with firm policy and appropriately documented?. C. Copies of company sales invoices inspected by the auditor. B. Cost-benefit of gathering evidence. A lead schedule is a working paper that lists the detailed general ledger accounts comprising a line item in the financial statements. Also, confirmations may not be designed to provide assurance about information not given in the request forms. The third general standard states that due professional care is to be exercised in the planning and performance of the audit and the preparation of the report. C. Interest payable divided by interest receivable. In creating lead schedules for an audit engagement, a CPA often uses automated work paper software. An auditor's analytical procedures performed during the overall review stage indicated that the entity's accounts receivable balance had doubled since the end of the prior year. Which set of assertions is tested when, during completion of the audit, the audit partner conducts a final review of the format of the entity's balance sheet? This is an attitude that includes (1) a questioning mind, (2) being alert to possible misstatements, and (3) a critical assessment of audit evidence (AU-C 500). C. Original source documents. 71. Identify internal control weaknesses more prominently. Assign the new grouping schedule to your client's Chart of Accounts using Setup > Chart of Accounts or Actions > Enter Trial Balance. must be available to begin creating automated lead schedules. Objectivity in the Code refers to a CPAs ability. For example, confirmations of accounts receivable do not necessarily provide reliable evidence about the completeness assertion because customers may not report understatements. A. A General ledger information, such as account numbers, prior-year account balances, and current-year unadjusted information. B. The permanent (continuing) file of an auditors audit documentation most likely would include copies of the. control. B. Following are several statements regarding accounting records or audit documentation. Recipients are likely to sign other types of positive confirmations without careful investigation. Confirmation of an account payable balance mailed by and returned directly to the auditor. Interim financial information, such as third quarter sales, net income, and inventory and receivables balances. Positive confirmation requests obtain evidence only when responses are received. Which of the following is required documentation in an audit in accordance with generally accepted auditing standards? Statement of Changes in Stockholders' Equity and Retained Earnings. B. Completeness. D. SEC. D. The entity opened a second retail outlet in the current year and its credit sales approximately equaled the older, established outlet. Reasonable assurance of achieving this basic objective is provided through. [Solved] In creating lead schedules for an audit engagement, what financial information is needed to begin? In creating lead schedules for an audit engagement, a CPA often uses automated audit documentation software. Serves as an executor and trustee of the estate of an individual who owned the majority of the stock of a closely held client corporation. The auditor notified the clients board of directors, but the board decided to take no action because the amounts involved were immaterial to the financial statements. Shipping documents and receiving reports. The total on a lead schedule should match the total for the corresponding line item in a clients financial statements. D. Auditee personnel responses to auditor inquiries. The third general auditing standard requires that due professional care be exercised in the performance of the examination and the preparation of the report. In designing written audit plans, an auditor should establish specific audit objectives that relate primarily to the. An accountant can perform, with preapproval of the audit committee of the board of directors, which of the following non-audit services during the audit of an issuer? When the auditor exercises professional skepticism with respect to the risks of material misstatement due to fraud, the auditor should consider the reliability of information to be used as audit evidence. This procedure most likely could indicate that. Consider withdrawing from the audit engagement and disassociating from future relationships with the client. Bank statements. Which of the following is a correct statement regarding the nature and timing of communications between an accounting firm performing an initial audit of an issuer and the issuers audit committee? D. Lead schedules. A. Some of the store merchandise is held on consignment. Disclosure of fraud to parties other than a clients senior management and its audit committee ordinarily is not part of an auditors responsibility. B. Organizational chart. Is the sole shareholder in a professional accountancy corporation and uses the designation and company in the firm title. C. Cutoff. Smith, CPA, is a partner of Johnson Accounting Firm. Audit documents record the results of the auditor's evidence-gathering procedures. C. Selected audit techniques. An auditors opinion, to be economically useful, is formed within reasonable time and based on evidence obtained at a reasonable cost. Kars sibling is the director of internal auditing for Fort. A difference between International Standards on Auditing (ISAs) and GAAS relating to violations of laws and regulations is that. In obtaining an understanding of a manufacturing entitys internal control over inventory balances, an auditor most likely would. Timing of audit procedures. The AICPA assurance service, called CPA Performance Review, attempts to provide users with. Which of the following types of audit evidence is the most persuasive? Choose File > Save As and name the new Financial Statement. Chat - Best option for simple questions An auditor's opinion, to be economically useful, is formed within a reasonable time and based on evidence obtained at a reasonable cost. The entitys auditor recognizes that the documentation of the transactions will be retained for only a short period of time. Which of the following would an auditor most likely use in determining materiality for the statements as a whole when establishing the overall audit strategy? B. Analytical procedures. C. Verify a representation from a third party. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. The firm recommended an aggressive tax position to the client that is more likely than not to be legally allowed. Which of the following should an auditor obtain from the After making inquiries about credit granting policies, an auditor selects a sample of sales transactions and examines evidence of credit approval. Thus, it is related to the valuation assertion that accounts receivable are recorded at net realizable value. During the confirmation of accounts receivable, an auditor receives a confirmation via the clients fax machine. In auditing accounts receivable, the negative form of confirmation request most likely would be used when. "I would not undertake that procedure because at best the results would only be persuasive and I'm looking for convincing evidence." To create these summaries, general ledger information is needed. Prohibited under the AICPA Code of Professional Conduct. Using personal computers in auditing may affect the methods used to review the work of staff assistants because. Must be in paper form only. The CPA does not audit the company and has no other business connection with the company. Which of the following tends to be most predictable for purposes of analytical procedures applied as substantive procedures? B. C. Assertions about presentation and disclosure. An auditor using audit software probably would be least interested in which of the following fields in a computerized perpetual inventory file? Which of the following documentation is required for an audit in accordance with PCAOB standards? Which of the following factors most likely would cause a CPA to not accept a new audit engagement? C. Chart of accounts.

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