An auditor may achieve audit objectives related to particular assertions by. C) Preparing audit documentation. The decision about which procedure or procedures to use to achieve a particular audit objective is based on the auditor's judgment on An auditor may achieve audit objectives related to particular assertions a. 32. To gather corroborative audit evidence about management’s assertions regarding the client’s financial statements d. Transaction-Level Assertions. Assist the auditor in assessing the validity of the conclusions reached on the audit D. 01 This section addresses the independent auditor's overall responsibili-ties when conducting an audit of financial statements in accordance with gen-erally accepted auditing standards (GAAS). The most reliable type of audit evidence that an auditor can obtain is A. increasing the level of detection risk. Answer (a) is correct because an auditor may perform analytical procedures to achieve an audit objective related to a particular assertion. An auditor may achieve audit objectives related to particular assertions by performing analytical procedures In addition to evaluating the frequency of deviations in tests of controls, an auditor should also consider certain qualitative aspects of the deviations. Whether you’re using accounting software or recording transactions in multiple ledgers, the audit assertion process remains the same. Study with Quizlet and memorize flashcards containing terms like An internal auditor's work would most likely affect the nature, timing, and extent of an independent CPA's auditing procedures when the internal auditor's work relates to assertions about the:, If an auditor performs an inspection of documentation supporting a client's account balances, he or she would most likely be testing any that may exist. Increase the level of detection risk. See full list on pcaobus. org Introduction. 03 and examples of substantive tests that may achieve those audit objectives. An auditor may achieve audit objectives related to particular assertions by: a. Also, the auditor may use other automated tools or reports produced by IT to test the operating effectiveness of general controls, such as program change controls, access controls, and system software controls. , Which of the following business characteristics is not indicative of high inherent To gather corroborative audit evidence about management’s assertions regarding the client’s financial statements d. Performing analytical procedures may help an auditor to:(1) Achieve audit objectives related to a particular assertion. c. Types of assertions An audit assertions graph showing various Performing analytical procedures may help an auditor to: Meet PCAOB requirements that analytical procedures be performed relating to every major account. d. (2) Develop an effective system of quality control. 24. 8. Identify areas that represent specific risks relevant to the audit C. Oct 7, 2023 · Performing analytical procedures may help an auditor to achieve audit objectives related to a particular assertion and develop an effective system of quality control. 15. On the II only The auditor relies on substantive tests to achieve audit objectives related to particular assertions. Meet PCAOB requirements that analytical procedures be preformed relating to every major account. performing substantive tests b. Audit Objectives; Audit objectives are the specific goals that the auditor has to accomplish in relation to the audit assertions. preparing auditor working papers d. Scope of This Section. A company sells a product only in the last month of its fiscal year. performing analytical procedures. Apr 12, 2021 · (Answer (a) is correct because an auditor may perform analytical procedures to achieve an audit objective related to a particular assertion. Increasing the level of detection risk (11/95, AUD, #38, ID: 5985) Jul 29, 2022 · An auditor may achieve audit objectives related to particular assertions by A. Increasing the level of detection risk. (4)Effectiveness of internal control. Satisfy doubts when questions arise about an entity's ability to continue in existence An auditor may accomplish a particular objective by inspecting documents, questioning knowledgeable sources, or recalculating the accuracy of figures in the records. The moment the financial statements are produced, the assertions or the claims of management also exist, e. The audit of assertions. Increasing the level of detection risk Study with Quizlet and memorize flashcards containing terms like when an analytical procedure is used as the principal substantive test of a significant financial statement assertion, the auditor is required to, the most likely analytical review procedure involving costs and expenses would be to compare, the auditor relies on substantive tests to achieve and more. (2)Completeness of recorded assets and liabilities. Jan 15, 2021 · An auditor may achieve audit objectives related to particular assertions by Performing analytical procedures. -Develop an effective system of quality control. (3) Meet PCAOB requirements that analytical procedures be performed relating to every major account. Performing analytical procedures. Management assertions fall into the following three classifications. b. Adhering to a system of quality control. An auditor may achieve audit objectives related to particular assertions by: Performing analytical procedures. Question: Performing analytical procedures may help an auditor to:Multiple ChoiceIncrease the level of detection risk. C. Dec 17, 2023 · The auditors test the validity of these assertions by conducting a number of audit tests. substantive analytical procedures alone cannot be considered as sufficient and appropriate audit evidence for assertions Standards on Audit and Audit Related Services”. Preparing auditor working papers d. To determine the amount of errors in the balance sheet accounts in order to adjust the accounts to actual. The objective of audit testing is to assist the auditor in coming to a conclusion as to whether the financial statements are free from material misstatement. Adhering to a system of quality control Which of the following explanations best describes why an auditor may decide to reduce tests of details for a particular audit objective? A) The audit is being performed soon after the balance sheet date. Substantive tests are performed to identify material misstatements at the assertion level. Performing analytical procedures may help an auditor to: Achieve audit objectives related to a particular assertion. In case of assertions whose ROMM has been assessed as significant and no tests of control are planned to be performed, the substantive procedures should include tests of detail (i. 8 For some assertions, SAPs may provide persuasive audit evidence to address the auditor’s assessed risk. B. Audit Programs Audit program–states the audit procedures that the auditor believes are necessary to accomplish the objectives of the audit. Achieve audit objectives related to a particular assertion. preparing auditor working papers. Meet PCAOB requirements that analytical procedures be performed relating to every major account. Study with Quizlet and memorize flashcards containing terms like Financial statement assertions include:, An internal auditor's work would most likely affect the nature, timing, and extent of an independent CPA's auditing procedures when the internal auditor's work relates to assertions about the:, While performing tests of details on client's investment transactions, the auditor's test starts The auditor's reliance on substantive tests to achieve an audit objective related to a particular assertion fn 1 may be derived from tests of details, from analytical procedures, or from a combination of both. To comply with the SEC c. D) Increasing the level of detection risk. a) Achieve audit objectives related to a particular assertion. For other assertions, it may be necessary for the auditor to obtain Audit assertions, financial statement assertions, or management’s assertions, are the claims made by the management of the company on financial statements. increasing the level of detection risk Study with Quizlet and memorize flashcards containing terms like Which is not a financial statement assertion made by management. (3) Meet PCAOB requirements that analytical procedures be performed relating to every major account. -Meet PCAOB requirements that analytical procedures be performed relating to every major account. adhering to a system of quality control. Get a hint. 14. In selecting particular substantive tests to achieve the audit objectives he or she has developed An auditor may achieve audit objectives related to particular assertions by: a. physical examination by the auditor. 22. The assertion is that the The primary objective of final analytical procedures is to: A. (2) Develop an effective system of quality control. An auditor may achieve audit objectives related to particular assertions by A. Paragraph . Aug 15, 2024 · (1) Achieve audit objectives related to a particular assertion. adhering to a system of quality control c. 21. Objective of an Audit . Performing analytical procedures may help an auditor to: A. For example, the auditor may choose to combine the assertions about transactions and events with the assertions about account balances. (1)Existence of recorded assets and liabilities. Preparing audit documentation. An auditor may achieve audit objectives related to particular assertions by . An auditor may achieve audit objectives related to particular assertions by Performing analytical procedures. . -Increase the level of detection risk. A Chapter 7 Overview of the Financial Audit Process D. 02 The objective of an audit of a financial report is to enable the auditor to express an opinion whether the financial report is prepared, in all material respects, in accordance with an identified financial reporting framework. Performing analytical procedures may help an auditor to:-Achieve audit objectives related to a particular assertion. In addition, in performing risk assessment procedures, the auditor may obtain audit evidence about the relevant assertions related to classes of transactions, account balances, or dis- An auditor may achieve audit objectives related to particular assertions by: A) Performing analytical procedures. More For You What Is Included For example, computer-assisted audit techniques may be used to test automated controls or data related to assertions. Performing analytical procedures may help an auditor to achieve audit objectives related to a assertion. Audit Chapter 5. Option1 is correct. Performing analytical procedures b. C) Analytical procedures have revealed no unusual or unexpected results. The processes involved in establishing objectives and the scope of an audit are critical and there are IPPF standards for each (Standard 2210 – Engagement Objectives and 2220 – Engagement Scope) that provide guidance for both assurance and consulting engagements. files has allowed audit strategies where the auditor can target procedures on high-risk subpopulations. Analytical procedures are one type of substantial procedure that the auditor could perform-I is wrong, Audit documentation is used to record the results of audit procedures that have been performed to achieve audit objectives. Mere Mar 18, 2024 · An auditor may achieve audit objectives related to particular assertions by a. D. The main objective of the work performed by the auditor in an audit engagement is that of obtaining reasonable assurance as to whether the financial statements, as a whole, are free from material misstatement, so that the auditor is able to express an opinion on the financial statements and report accordingly in the auditor’s report. S1 – The auditor shall design and perform analytical procedures near the end of the audit that assist the auditor when forming an overall conclusion as to whether the financial statements are consistent with the auditor’s understanding of the entity. such procedures may be used by the auditor as audit evidence to support as-sessments of the risks of material misstatement. An auditor may achieve audit objectives related to particular assertions by. Evidence gathered by auditors must be both valid and relevant to be considered appropriate. adhering to a system of quality management. a. (3)Valuation of assets and liabilities. However, the auditor does not simply design tests with the broad objective to identify material misstatement. 2 Financial statements assertions. Explanation: Analytical procedures play a vital role in the audit process , helping auditors assess the reasonableness of financial information and achieve An auditor may achieve audit objective related to particular assertions by a from BUSINESS A 101 at University of the East, Manila When performing an audit, it is the auditor’s job to obtain the necessary evidence to verify the assertions made in the financial statements. (4) Increase the level of detection risk. , all items in the income statement are assured to be complete and accurate, etc. An auditor may achieve audit objectives related to particular assertions by a from ACG ACG-4651 at University of North Florida Questions on assertions may often be included in the objective test questions (OTs) in the AA and FAU exams and may also appear in the constructed response questions where candidates may be required to demonstrate knowledge of the assertions and procedures that are linked to particular transaction or account balance assertions in more detail. 11. Audit assertions and audit objectives should be congruent with one another. The audit program also documents audit strategy. View Section E Practice Exam. (4) Increase the level of detection risk. Jul 29, 2022 · An auditor may achieve audit objectives related to particular assertions by A. Analytical procedures may be effective and efficient tests for assertions. Develop an effective system of quality control. Answer (b) is incorrect because a system of quality control provides the CPA firm with reasonable assurance of conforming with professional standards. . Analytical procedures performed near the end of the audit to assist the auditor in forming an overall conclusion on the financial statements are aimed primarily at: a) Gathering evidence concerning account balances that have not changed from the prior year. 26 provides illustrative audit objectives for inventories of a manufacturing company for each of the broad categories of assertions listed in paragraph . Relevant to Foundations in Audit (FAU) and Audit and Assurance (AA) This article will focus on assertions as identified by ISA 315 (Revised 2019) and also provides useful guidance to candidates on how to tackle questions dealing with these. 2 Audit evidence, which is cumulative in nature, includes audit evidence obtained from audit procedures performed during the course of the audit and may include audit evidence obtained from other sources, such as pre-vious audits and a firm's quality control procedures for client acceptance and continuance. Question: . The correct option is (1) achieve audit objectives related to a particular assertion. docx from ACCT 405 at Boise State University. Achieve audit objectives related to a particular assertion. Obtain evidence from details tested to corroborate particular assertions B. Develop an effective system of quality control. The following five items are classified as assertions related to transactions, mostly in regard to the income statement: Accuracy. Analytical procedures are used for the following purposes: To assist the auditor in planning the nature, timing, and extent of other auditing procedures. Meet PCAOB requirements that analytical procedures be performed relating to everymajor account. Adhering to a system of quality control c. The correct statement is (1) Achieve audit objectives related to a particular assertion. Performing analytical assertions b. e. As a substantive test to obtain evidential matter about particular assertions related to account balances or classes of transactions. that there is a lower risk that a material misstatement may occur because of the particular characteristics of a class of transactions (without consideration of the related controls), the auditor may determine that substantive analyti-cal procedures alone may provide sufficient appropriate audit evidence. An auditor may achieve audit objectives related to particular assertions by: A. An auditor may achieve audit objectives related to particular assertions by a. Apr 30, 2022 · An auditor may achieve audit objectives related to particular assertions by - 27913623 Mar 30, 2023 · achieve an audit objective related to a particular assertion may be derived from tests of details, from SAPs, or from a combination of both. g. Preparing auditor working papers. A. 4. B) Audit staff are experienced in performing the planned procedures. Audit evidence and the objectives of an audit. B) Adhering to a system of quality control. Mar 10, 2024 · An auditor may achieve audit objectives related to particular assertions by A. qkvs mnmvioj gleo oldis yivn xajkc iodtbq wmagj otvs aehxu