Question

ACC 491 Audit Question 1: Statements on Auditing Standards are non-authoritative statements, enforced through the Code of Professional Conduct. True or False 2: Can differing interests exist between the company preparing the financial statements and the persons using the statements? True or False 3: The serially-numbered pronouncements issued by the ASB (Auditing Standards Board) over a period of years are known as what? 4: What organization is charged with protecting investors and the public by requiring full disclosure of financial information by companies offering securities to the public? 5: What kind of report from a CPA firm would have a summary of findings rather than assurance? 6: Does management and the auditors have the responsibility for the preparation of the financial statements in accordance with the applicable financial reporting framework? True or False 7: The risk associated with a company’s survival and profitability is referred to as control risk. True or False 8: In an Independent Auditor’s Report (non-public), an integral part of management’s responsibility in an unmodified (clean) report is the design, implementation and maintenance of internal control. (page 43) True or False 9: Which of the following is not included as a part of the description of the auditor's responsibility in a nonpublic company unmodified report? (a) The audit was performed in accordance with generally accepted accounting principles. (b) An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. (c) The procedures selected depend on the auditor's judgment. (d) An audit includes evaluating the appropriateness of accounting policies used. 10: In an Independent Auditor’s Report (non-public), an integral part of management’s responsibility in an unmodified (clean) report is the design, implementation and maintenance of internal control. (page 43) True or False

Answer 1

As per policy only first four questions should be answered. However, I am ready to help you with all your questions

1. False. Statements on Auditing Standards are authoritative statements, enforced through the Code of Professional Conduct.

2. True. There can exist differing interests between the company preparing the financial statements and the persons using the statements because there perception of view financial statements is totally different.

3. Statements on Auditing Standards (SASs). The serially-numbered pronouncements issued by the ASB (Auditing Standards Board) over a period of years are known as Statements on Auditing Standards (SASs).

4. Securities and Exchange Commission. The organization is charged with protecting investors and the public by requiring full disclosure of financial information by companies offering securities to the public Securities and Exchange Commission.

5. Agreed-upon procedures report. A CPA firm would have a summary of findings rather than assurance most likely to be included in an Agreed-upon procedures report.

6. True. Management and the auditors have the responsibility for the preparation of the financial statements in accordance with the applicable financial reporting framework. The requirements of the applicable financial reporting framework determine the form and content of the financial statements, and what constitutes a complete set of financial statements.

7. False. The risk associated with a company's survival and profitability is referred to as Business risk.

8. True. In an Independent Auditor’s Report (non-public), an integral part of management’s responsibility in an unmodified (clean) report is the design, implementation and maintenance of internal control.

9. Answer is option A. The audit was performed in accordance with generally accepted accounting principles.

10. True. In an Independent Auditor’s Report (non-public), an integral part of management’s responsibility in an unmodified (clean) report is the design, implementation and maintenance of internal control.