18 Questions
What must the auditor conclude on when evaluating the results of the audit?
Whether sufficient appropriate audit evidence has been obtained to support the opinion on the financial statements.
According to PCAOB standards, what role do management representations play in the audit process?
Management representations are part of the evidential matter obtained by the auditor, but they do not substitute the necessary auditing procedures.
Why is inquiry of company personnel alone not sufficient as audit evidence?
Inquiry of company personnel, by itself, does not provide enough evidence to reduce audit risk to an appropriately low level for a relevant assertion.
What are the two key characteristics that audit evidence must possess to be considered appropriate?
Relevance and reliability.
What is the main focus when determining whether audit evidence is appropriate?
To support the conclusions on which the auditor's opinion is based.
Why must the auditor ensure that the audit evidence obtained is both relevant and reliable?
To have a reasonable basis for the opinion on the financial statements.
What is the importance of the auditor's understanding of the company's selection and application of accounting principles in the audit process?
To assess risks of material misstatement
What is the significance of evaluating whether a company's selection and application of accounting principles are in conformity with the applicable financial reporting framework?
To ensure fair presentation of financial statements
Why is it crucial for auditors to assess whether financial statements are presented fairly in all material respects?
To determine compliance with auditing standards
What is the role of due professional care in the performance of audit work?
To ensure thoroughness and accuracy
Why is inquiry of company personnel alone insufficient as audit evidence?
Risk of bias or manipulation
What are the key characteristics that audit evidence must possess to be considered appropriate?
Relevance and reliability
When did the Firm issue an audit report for Power America's 2018 financial statements?
May 25, 2022
What is the date the Firm belatedly filed a Form AP for the audit report on Power America's 2019 financial statements?
January 26, 2023
When was the audit report issued for Power America's 2020 financial statements?
June 17, 2022
For Alterola Biotech, Inc.'s 2022 financial statements, when did the Firm issue the audit report?
June 10, 2021
When was the Form AP belatedly filed for Marquie Group, Inc.'s 2022 financial statements?
February 6, 2023
What is the date the Firm included the audit report for Marquie Group, Inc.'s 2022 financial statements in the Form 10-K filing with the SEC?
August 30, 2022
Test your knowledge on The Auditor’s Responses to the Risks of Material Misstatement and Consideration of Fraud in a Financial Statement Audit as per the accounting standards. Questions include topics such as audit evidence, identifying and assessing risks of material misstatement, and PCAOB releases.
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