Chapter 9 - Materiality and Risk Multiple Choice Questions From CPA Examinations 9-22 a. (4) b. (4) 9-23 a. (1) b. (1) c. (1) 9-24 a. (2) b. (3) c. (1) 9-25 a. The justification for a lower preliminary judgment about materiality for overstatements is directly related to legal liability and audit risk. Most auditors believe they have a greater legal and professional responsibility to discover overstatements of owners' equity than understatements because users are likely to be more
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Chapter 9 - Materiality and Risk ← Multiple Choice Questions From CPA Examinations 9-22 a. (4) b. (4) 9-23 a. (1) b. (1) c. (1) 9-24 a. (2) b. (3) c. (1) 9-25 a. The justification for a lower preliminary judgment about materiality for overstatements is directly related to legal liability and audit risk. Most auditors believe they have a greater legal and professional responsibility to discover overstatements of owners' equity than understatements because users are likely to be
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worth a total of 150 points Chapter Break-Down Chapter 1 * 1 MC question * 3 total points (2% of the exam) Chapter 2 * 3 MC questions * 9 total points (6% of the exam) Chapter 3 * 5 MC questions * 1 Short answer question * 20 total points (~13% of the exam) Chapter 4 * 5 MC questions * 1Short answer question * 20 total points (~13% of the exam) Chapter 5 * 6 MC questions * 18 total points (12% of the exam) Chapter 6 * 5 MC questions *
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Relationship Between Audit Risk and Audit Evidence The audit risk model is used to help the auditor develop a knowledgeable perspective about the risk of misstatement and make decisions about the sufficiency of evidential matter. In making generalizations about the audit risk model, care must be taken in specifying the risk term about which a generalization is being made. Figure 9-7 Interrelationship among Materiality, Detection Risk, and Substantive Audit Evidence There is an inverse
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Elder and Beasley 14ed Publisher Pearson/PrenHall ISBN 978013257595 |2013 |Topic |Assignment/Chapter to read | |Thursday September 5th |Introduction to the CPA Profession and the Auditing |Chapters 1 and 2 | | |Environment | | |
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Chapter #1 1. What is assurance engagement? * An engagement performed by an auditor to enhance the reliability of the subject matter * Involves auditor arriving at an opinion about the fair representation of financial statements 2. Explain why there is a demand between types of assurance services * Users demand audited financial statements because of their remoteness from the entity, accounting complexity their incentives competing with those of the entity’s manager and
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Executive Summary In the performance of a risk-based audit, adequate planning is of paramount importance as it allows to direct the audit effort towards the areas expected to be most at risk of material misstatement. Additionally, adequate planning helps identify and resolve problems on a timely basis and allows the auditor to organize the engagement, including selecting suitably experienced team members to deal with specific risks, so that it can be performed in an effective and efficient manner
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and enhance the students’ understanding in auditing. Among the topics that will be discussed are code of ethics, auditors’ liability and in-depth explanations on analytical procedures, computer assisted audit techniques, audit sampling, materiality and audit risk, group audit and current issues facing the auditing profession. This course will justify other activities than financial statement audit that can be performed by a public accountant like performance/operational audit, internal audit and
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The University of Illinois at Chicago College of Business Administration Department of Accounting
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ACC 491 Entire Course http://homeworkgallery.com/index.php/product/acc-491-entire-course/ http://homeworkgallery.com/index.php/product/acc-491-entire-course/ http://homeworkgallery.com/index.php/product/acc-491-entire-course/ ACC 491 Week 1 Individual Assignment Generally Accepted Auditing Standards Paper Write a 700- to 1,050-word paper in which you explain the nature and functions of auditing. Relate your explanation to the audit functions in your organization, or an organization
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