Please access PCAOB Auditing Standard No. 12 "Identifying and Assessing Risks of Material Misstatements" (pcaobus.org). Use...

Please access PCAOB Auditing Standard No. 12 "Identifying and Assessing Risks of Material Misstatements" (pcaobus.org). Use this standard to answer each of the questions below. For each answer, document the paragraph(s) in AS No. 12 supporting your answer.

a. What types of information does AS No. 12 suggest the auditor should consider when obtaining an understanding of the company and its environment?

b. What types of performance measurements might affect the risk of material misstatement?

c. What specific issues should be included in the discussion among engagement team members regarding the risk of material misstatement?

d. What factors should the auditor consider to determine if a risk is a "significant risk"?

e. What guidance is provided about revising the risk assessment as the audit continues?

Expert Solution

Ans A

Introduction

1. This standard establishes requirements regarding the process of identifying and assessing risks of material misstatement1/ of the financial statements

2. Paragraphs 4-58 of this standard discuss the auditor's responsibilities for performing risk assessment procedures.2/ Paragraphs 59–73 of this standard discuss identifying and assessing the risks of material misstatement using information obtained from performing risk assessment procedure

Objecti

3. The objective of the auditor is to identify and appropriately assess the risks of material misstatement, thereby providing a basis for designing and implementing responses to the risks of material misstatement.ves..

Ans B

The company's operating characteristics, including its size and complexity; Note: The size and complexity of a company might affect the risks of misstatement and how the company addresses those risks.

Ans C

The discussion among the audit team members about the susceptibility of the entity's financial statements to material misstatement due to fraud should include a consideration of the known external and internal factors affecting the entity that might (a) create incentives/pressures for management and others to commit ...

ekkarill92 answered 2 years ago

18 (a) ISA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity...

18 (a) ISA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment requires auditors to obtain an understanding of control activities relevant to the audit. Control activities are the policies and procedures which help ensure that management directives are carried out. Required: Describe FOUR different types of control activities and, for each type, provide an example control a company may implement. Equestrian Co manufactures smartphones and tablets. Its main customers are retailers who...

NEED PARAGRAPH NUMBERS!!!!!! This problem requires you to access PCAOB Auditing Standards (pcaobus.org) to answer each...

NEED PARAGRAPH NUMBERS!!!!!! This problem requires you to access PCAOB Auditing Standards (pcaobus.org) to answer each of the following questions. You can access those standards by viewing content found under the link “Standards.” For each answer, document the paragraph(s) in the relevant standard supporting your answer. Review PCAOB auditing standards related to the auditor’s consideration of fraud in a financial statement audit, to answer questions in parts a. through d. Review PCAOB Auditing Standard No. 12, Identifying and Assessing Risks...

Suppose you want to find the auditing standard issued by the PCAOB that discusses audit evidence...

Suppose you want to find the auditing standard issued by the PCAOB that discusses audit evidence Which auditing standard is this? Give the official name What are the 7 types of evidence discussed in this standard?

10-30 (Objectives 10-2, 10-5, 10-8) This problem requires you to access PCAOB Auditing Standards (pcaobus.org) to...

10-30 (Objectives 10-2, 10-5, 10-8) This problem requires you to access PCAOB Auditing Standards (pcaobus.org) to answer each of the following questions. You can access those standards by viewing content found under the link “Standards.” For each answer, document the paragraph(s) in the relevant standard supporting your answer. Review PCAOB auditing standards related to the auditor’s consideration of fraud in a financial statement audit, to answer questions in parts a. through d. Review PCAOB Auditing Standard No. 12, Identifying and...

Using the standard, provide the criteria for each of the following sub-standards. 1.Screening and assessing risks...

Using the standard, provide the criteria for each of the following sub-standards. 1.Screening and assessing risks 2.Preventing falls 3.Communicating with patients and cares

An auditor is auditing the client’s 12/31/2019 financial statements. The client’s foreign assets, which are material,...

An auditor is auditing the client’s 12/31/2019 financial statements. The client’s foreign assets, which are material, are nationalized by another government on 1/26/2020. The client argues that this event should be recognized in the 12/31/2019 financial statements because it is misleading for the balance sheet to show assets at 12/31/2019 that the client no longer owns three weeks later. What opinion should the auditor give on these financial statements?

Please use an Access database with two tables to answer the following: use an example to...

Please use an Access database with two tables to answer the following: use an example to discuss the difference between a right, left, and inner join. Next, perform the left joint, right joint, and inner joint all on the each of the two tables.

Please explain the methodology for assessing property and calculating property tax for a residence. Use examples...

Please explain the methodology for assessing property and calculating property tax for a residence. Use examples with calculations as part of your answer.

Use the References to access important values if needed for this question. Please specify states such...

Use the References to access important values if needed for this question. Please specify states such as (aq) or (s). h. Consider the reaction when aqueous solutions of calcium chloride and sodium hydroxide are combined. The net ionic equation for this reaction is: j. Consider the reaction when aqueous solutions of potassium carbonate and nickel(II) acetate are combined. The net ionic equation for this reaction is: k. Consider the reaction when aqueous solutions of potassium sulfide and sodium phosphate are...

Aquafloat Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor...

Aquafloat Corporation manufactures rafts for use in swimming pools. The standard cost for material and labor is $89.20 per raft. This includes 8 kilograms of direct material at a standard cost of $5.00 per kilogram, and 6 hours of direct labor at $8.20 per hour. The following data pertain to November: Work-in-process inventory on November 1: none. Work-in-process inventory on November 30: 800 units (75 percent complete as to labor; material is issued at the beginning of processing). Units completed:...

Question