B) A discipline that provides assurance regarding the results of accounting and other functional operations and data. Independent auditors perform audits on the financial reports of public companies. reliability. C. The basic principles and essential procedures of the audit with general guidance contained in Guidance statements. Learning Objective: 13 Understand the nature and significance of the auditors reporting obligations. Below are a number of potential additional benefits arising from an assurance A.a discipline that assures financial information presented by management. 7. communicating different levels of assurance and appreciate the relationships between the auditor, the client and the public Topic: Attributes of accounting information and the demand for assurance, AACSB: Analytic A. Topic: The auditor-client-public relationship and the expectation gap, AACSB: Analytic Which of the following best describes why an independent auditor is asked to express an opinion on the true and fair presentation of a financial report? B. a. b.a discipline that provides assurance regarding the results of accounting and other functional operations and data. A. express an opinion as to the attractiveness of Campbell for investment purposes. B.agreed-upon procedures. Difficulty: Medium Testimonianze sulla storia della Magistratura italiana (Orazio Abbamonte), Financial Accounting: an Integrated Approach (Ken Trotman; Michael Gibbins), Database Systems: Design Implementation and Management (Carlos Coronel; Steven Morris), Contract: Cases and Materials (Paterson; Jeannie Robertson; Andrew Duke), Culture and Psychology (Matsumoto; David Matsumoto; Linda Juang), Na (Dijkstra A.J. pronouncements. 47. A. the independent auditor. Independent auditing can best be described as a. Independent CPAs perform audits on the financial statements of public companies. Under the Corporations Act 2001, if a companys financial report, when prepared in accordance with accounting standards, would not The evidence originated by the auditors is being graded as a, A: Sales management refers to the administration of the personal selling component of a companys, A: Lobbying:Building and maintainingrelations withlegislators and government officials to influence, A: Fraud is a deceptive action that is taken intentionally for unlawful gain or to deny a right to a, A: The usefulness of an information systems controls is assessed over an information systems audit. In an audit of a financial report, the criteria by which financial A.examine individual transactions so that the auditor may certify as to their validity. It is management's responsibility to seek available independent aid in the appraisal of The auditor's judgment concerning the overall fairness of the presentation of financial Section: The framework for assurance engagements and the structure of assurance standards and pronouncements, Chapter - Chapter 01 # Financial report auditing can best be described as: A A discipline that attests to the results of accounting and other functional operations and data. C. Professional competence with regards to underlying subject matter. The auditors judgment concerning the overall fairness of the presentation of financial position, results of operations and cash flows is D.Assurance can be provided on a continuum from absolute to limited. auditing standards? publicly held company rests with the: Answered: Independent auditing can best be | bartleby D. The Australian Securities and Investments Commission. with approved service: I. recommendations to improve the efficiency of operations. D. Documentation. High assurance and reasonable assurance. (I.e. The accuracy of information included in notes that accompany the audited financial A: Corporate Governance C. Integrity. The growth in assurance services has been driven in part by users demands for more relevant and reliable information. B. information can vary in its relevance. Information about material contingent liabilities relevant for audited financial statements. Evidence is any information used by the auditor to determine whether the information being audited is stated in accordance with the established criteria. User shares information risk with management, Audited financial statements are provided, Audit of Internal Control over Financial Reporting, Review of Historical Financial Statements, Attestation Services on Information Technology, Controls over and risks related to investments, including policies related to derivatives, Assess risks of accumulation, distribution, and storage of digital information, Compliance with entertainment royalty agreements, Corporate responsibility and sustainability, Financial Accounting and Reporting (FAR) - 4 hours, Business Environment and Concepts (BEC) - 3 hours. b) Relevant B. Illegal act Select one: Difficulty: Easy B. the stock exchange officials. What is the meaning of the auditing standard that requires the auditor be independent? Difficulty: Easy C. improve the consistency of information. ; Jager R. de; Koops Th. B) A discipline that provides assurance regarding the results of accounting and other functional operations and data. The growth in assurance services has been driven in part by users' demands for more A decrease in the desired level of assurance. Chapter 1 Flashcards by Pochie Bash | Brainscape We reviewed their content and use your feedback to keep the quality high. D. All of the given answers are correct. objective of an audit? Independent auditing can best be described as: A discipline that provides assurance regarding the results of accounting and other functional operations and data. Topic: Auditingdefinition and fundamental principles. The primary responsibility for the adequacy of disclosures in the financial report of a publicly held company rests with: A. those charged with the governance of the company. 21. An increase in the desired level of assurance. Under the Corporations Act 2001, if a company's financial report, when prepared in Which of the following best describes the reason why an independent auditor reports on financial statements? B. attaching an auditor's opinion to the client's financial report. D. I, II and III. managing the affairs of the business. expertise of an independent auditor. II. Independent external auditing can best be describes as a a. professional activity that measures and communicates financial accounting data. responsibilities extend to: D. A poorly designed internal control system may be in place. Client satisfaction. requires the management accountant to mitigate actual conflicts of interest.b. B. C. Assurance engagements other than audits or reviews of historical financial financial information. C.Evidence. Learning Objective: 1 Understand the framework for assurance engagements and the structure of assurance standards and (3) prohibited under the AICPA rules of conduct. Solved Independent auditing can best be described as A - Chegg It is difficult to prepare a financial report that fairly presents a company's financial (4) a violation of generally accepted auditing standards. A) A branch of accounting. Topic: Attributes of accounting information and the demand for assurance. Independent auditing can best be described as a, b. Management presents its written assertion about the effectiveness of internal control. B. Deficient standards and deficient performance. See Answer Question: Independent CPAs perform audits on the financial statements of issuers. Only b, Which of the following statements are True about auditors responsibilities to the financial statements? Management do not provide complete information to the auditors intentionally e) The right to examine and evaluate financial and information systems, recommending controls to ensure system reliability and data integrity The correct answer for each question is indicated by a. C.assure the consistent application of correct accounting procedures. The examination or audition of the financial statements by an independent auditor is known as independent auditing, and it is best described as a discipline that provides assurance regarding the results of accounting and other operations and data of a company. D.Objectivity. C. listing rules of the Australian Securities and Investments Commission. A performance audit on a government department. 16. Below are a number of potential areas where a gap between societys expectations of auditors and the perceived performance of Learning Objective: 01 Appreciate the attributes of accounting information and understand the reasons giving rise to the demand for assurance C. It is a customary courtesy that all shareholders of a company receive an independent D. The opinion of an independent party is needed because a company may not be A. (1) a branch of accounting. Which of the following is not an element of an assurance engagement? D. I, II and III. C. make a 100% examination of Campbells records. A.management of the company. A professional activity that measures and communicates financial and business data. Experts are tested by Chegg as specialists in their subject area. The external auditor is expected to: C) A professional activity that measures and communicates financial and business data. B. Communication. Learning Objective: 01 Define auditing and appreciate the fundamental principles underlying an audit Est Time: < 1 min Governmental auditing often extends beyond examinations leading to the First week only $4.99! Which of the following is not considered to be a value added to financial information B.Communication. with a relevant requirement in an auditing standard. D. Communications gap and deficient performance. 2003-2023 Chegg Inc. All rights reserved. C. It is a customary courtesy that all shareholders of a company receive an independent report on managements stewardship in D. certify the correctness of Campbells financial report. Learning Objective: 1 Understand the framework for assurance engagements and the structure of assurance standards and D. stating in the auditors communication of internal-control-related matters that the audit was made in accordance with Australian Money management is not an easy task. TBCH01 - Inttermediate Accounting - CHAPTER 1 MULTIPLE - Studocu B.Relevance. B. A regulatory function that prevents the issuance of improper financial information. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. be adhered b 22. and accompanying footnotes? C. A separate report to the independent audit regulatory pronouncements. Information Asymmetry Refers to an imbalance of information between stockholders and the management of the company. Only a) , b) and, One essential of a good audit evidence which can also be regarded as a limitation when the auditor is drawing his conclusions is: C. The auditor is required to document the circumstances in the auditor's report. (3) a professional activity that measures and communicates financial and business data. The entitys Board of Directors. Select the most appropriate statement. Learning Objective: 16 Understand the characteristics of engagements involving the assurance of reports on internal controls, and Operational audits generally have been conducted by internal auditors and governmental audit agencies but may be performed by certified public accountants.