Match the scenario below with the audit standard(s) and the number within the standard . Some examples may have more than one standard that applies.
Audit standards:
-General #1, #2, or #3
-Field work #1, #2, or #3
-Reporting #1, #2, #3, or #4
SCENARIOS:
(a) Larry works for a CPA firm that has few supervisory auditors.
(b) Mary-Ellen becomes bored with auditing payroll, so she simply checks off the steps on a work program as being completed without doing the work.
(c) Bruce refuses to attend his firm's training sessions, attending a baseball game instead. He has another staff member sign him in and out.
(d) The audit firm runs out of time and thus stops collecting evidence despite worries that there might be errors in one account.
(e) The staff at a firm like the client, so they raise the materiality threshold beyond the limit generally set by the firm.
(f) The audit report states that GAAP was used in preparing the financial statements, even though the client deviated from GAAP in several material respects.
(g) The auditors withhold the audit report because they have not been paid.
(h) The auditors perform the tests of internal control as they perform the substantive tests in order to save the client money.
(i) The client changes accounting methods with respect to inventory, but failed to restate its financial statements for the prior periods. The auditors decided to let it go since they ran out of time.
(j) The auditors fail to audit the footnote disclosures provided by the client.
(k) The auditor is concerned that there are material errors he has not found and so refuses to issue an audit report.
Correct Answer:
Verified
(b) General #3 (could ...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q58: An auditor encounters an error and decides
Q59: As part of the proposal process the
Q60: Auditors do not provide absolute assurance in
Q61: The reporting standards addresses:
A) an expression of
Q62: Why are analytical procedures a required step
Q64: Auditors auditing nonpublic companies must follow:
A) all
Q65: List the steps required in client acceptance,
Q66: What is the value of auditors going
Q67: Auditing Standard #5 requires:
A) auditors perform tests
Q68: You are the auditor for a nonpublic
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents