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Name the three categories of inquiry and describe the purpose of each when used by an auditor to obtain additional information about a suspected fraud.
Identify three verbal and three nonverbal cues that may be observed when making inquiries of an individual who is being deceitful.
New accounting pronouncements have resulted in explanatory paragraphs for consistency for the company and other firms in the industry.
Who should attend the brainstorming session and when should the session be held?
Cash paid on accounts receivable that had been prelisted by a secretary was stolen by the bookkeeper who records cash receipts and accounts receivable.
What are the benefits of a prelisting of cash? Who should prepare the prelisting and what duties should that person not perform?
List the most important deficiency in internal control and state the misstatements that are likely to result from the deficiency.
What is the auditor's responsibility for discovering this type of embezzlement?
The company did not record credit memos for returns received in the last month of the year. The goods received were counted as part of the company.
Describe the type of fraud risk that is likely associated with the need for this audit procedure.
The client engages in several material transactions with entities owned by family members of several of the client's senior executives.
During 2013, WRS changed its method of preparing its financial statements from the cash basis to generally accepted accounting principles.
A CPA firm should decrease acceptable audit risk for audit clients when external users rely heavily on the statements.
Explain how audit risk and materiality are related and why they need to be considered together in planning an audit.
Explain what is meant by the term acceptable audit risk. What is its relevance to evidence accumulation?
What is meant by the term quality control as it relates to a CPA firm?
What is the main objective of the audit of an entity's financial statements?
What is the process the AICPA Auditing Standards Board (ASB) uses to develop AICPA auditing standards?
Briefly describe each of the principles underlying AICPA auditing standards and indicate how the action(s) of Holmes resulted in a failure to comply .
List the eight parts of a standard unqualified audit report for a nonpublic entity and explain the meaning of each part.
What are the purposes of the opinion paragraph in the auditor's report? Identify the most important information included in the opinion paragraph.
On February 17, 2014, a CPA completed all the evidence gathering procedures on the audit of the financial statements for the Buckheizer Technology Corporation.
What four circumstances are required for a standard unqualified report to be issued?
Describe what is meant by reports involving the use of other auditors. What are the three options available to the primary auditor responsible for the opinion.
List the three conditions that require a departure from an unqualified opinion and give one specific example of each of those conditions.