Health : asked on unknown6669
 18.08.2020

Which of the following statements is FALSE?

. 4

Faq

Mathematics
Step-by-step answer
P Answered by Specialist

C. reduce the probability that the sum of immaterial and/or undetected misstatements in the financial statements is less than materiality for the financial statements as a whole.

Step-by-step explanation:

This is the likely answer going by the relationship between the undetected misstatement and the materiality for the financial statements.

Mathematics
Step-by-step answer
P Answered by Specialist

C. reduce the probability that the sum of immaterial and/or undetected misstatements in the financial statements is less than materiality for the financial statements as a whole.

Step-by-step explanation:

This is the likely answer going by the relationship between the undetected misstatement and the materiality for the financial statements.

Business
Step-by-step answer
P Answered by PhD

D. The auditor should assess the risks of material mis-statement due to fraud.

Explanation:

At the time of auditor visit in a company the financial statement represent that the company has done the fraud in this scenario, the auditor should analyze the material misstatement risk that is done for fraud

Therefore in the given case, the option D is correct as the auditor responsibility is that he or she should analyze the risk with respect to the false statements presented in the financial statement

Business
Step-by-step answer
P Answered by PhD

D. The auditor should assess the risks of material mis-statement due to fraud.

Explanation:

At the time of auditor visit in a company the financial statement represent that the company has done the fraud in this scenario, the auditor should analyze the material misstatement risk that is done for fraud

Therefore in the given case, the option D is correct as the auditor responsibility is that he or she should analyze the risk with respect to the false statements presented in the financial statement

Business
Step-by-step answer
P Answered by PhD

Electronic Engineering & CPA Firm

Statements that would most likely be included in the engagement letter:

Statement 1 Our audit will be conducted with the objective of expressing an unmodified opinion on the financial statements.

Statement 5 As part of our audit process, we will request from management, written confirmation concerning representations made to us in connection with the audit.

Statement 6 Our audit will be conducted on the basis that management acknowledge and understand that they have responsibility for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America.

Statement 7 We will plan and perform an audit in accordance with GAAS, which will discover all material misstatements.

Statement 8 Management will make available to the auditor draft financial statements and any accompanying other information in time to allow us to complete the audit in accordance with the proposed timetable.

Statement 9 Management will provide us with unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence.

Statement 10 Management will provide us with access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements such as records, documentation, and other matter.

Statement 13 Circumstances may arise in which it is necessary for us to modify our opinion, add an emphasis-of-matter or other-matter paragraph(s), or withdraw from the engagement.

Explanation:

The engagement letter is a formal document which the auditor uses to accept an audit appointment.  It details the objective and scope of the audit, the auditor's and management responsibilities, and the form of any reports.

Generally, an engagement letter is an agreement, which is less formal than a contract because it avoids legal jargons but is enforceable in business relationships.

Business
Step-by-step answer
P Answered by PhD

Electronic Engineering & CPA Firm

Statements that would most likely be included in the engagement letter:

Statement 1 Our audit will be conducted with the objective of expressing an unmodified opinion on the financial statements.

Statement 5 As part of our audit process, we will request from management, written confirmation concerning representations made to us in connection with the audit.

Statement 6 Our audit will be conducted on the basis that management acknowledge and understand that they have responsibility for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America.

Statement 7 We will plan and perform an audit in accordance with GAAS, which will discover all material misstatements.

Statement 8 Management will make available to the auditor draft financial statements and any accompanying other information in time to allow us to complete the audit in accordance with the proposed timetable.

Statement 9 Management will provide us with unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence.

Statement 10 Management will provide us with access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements such as records, documentation, and other matter.

Statement 13 Circumstances may arise in which it is necessary for us to modify our opinion, add an emphasis-of-matter or other-matter paragraph(s), or withdraw from the engagement.

Explanation:

The engagement letter is a formal document which the auditor uses to accept an audit appointment.  It details the objective and scope of the audit, the auditor's and management responsibilities, and the form of any reports.

Generally, an engagement letter is an agreement, which is less formal than a contract because it avoids legal jargons but is enforceable in business relationships.

Computers and Technology
Step-by-step answer
P Answered by Master

# LargeSmall.py - This program calculates the largest and smallest of three integer values.

# Declare and initialize variables here

firstNumber = -50;

secondNumber = 53;

thirdNumber = 78;

# Write assignment, if, or if else statements here as appropriate

#Finding the Largest

if firstNumber>secondNumber and firstNumber>thirdNumber:

   largest = firstNumber

elif secondNumber>firstNumber and secondNumber>thirdNumber:

   largest = secondNumber

else:

   largest = thirdNumber

#Finding the smallest

if firstNumber<secondNumber and firstNumber<thirdNumber:

   smallest = firstNumber

elif secondNumber<firstNumber and secondNumber<thirdNumber:

   smallest = secondNumber

else:

   smallest = thirdNumber

# Output largest and smallest number.

print("The largest value is " + str(largest))

print("The smallest value is " + str(smallest))

Explanation:

Given that Most part of the code has already being written using python programming language. Our task was to add the necessary if and else statements that will check the three numbers and return the largest and smallest among them. Check the attached screenshoot for the program output, also read the comments made in  the code


Two variables named largest and smallest are assigned for you. Use these variables to store the larg
Computers and Technology
Step-by-step answer
P Answered by Specialist

# LargeSmall.py - This program calculates the largest and smallest of three integer values.

# Declare and initialize variables here

firstNumber = -50;

secondNumber = 53;

thirdNumber = 78;

# Write assignment, if, or if else statements here as appropriate

#Finding the Largest

if firstNumber>secondNumber and firstNumber>thirdNumber:

   largest = firstNumber

elif secondNumber>firstNumber and secondNumber>thirdNumber:

   largest = secondNumber

else:

   largest = thirdNumber

#Finding the smallest

if firstNumber<secondNumber and firstNumber<thirdNumber:

   smallest = firstNumber

elif secondNumber<firstNumber and secondNumber<thirdNumber:

   smallest = secondNumber

else:

   smallest = thirdNumber

# Output largest and smallest number.

print("The largest value is " + str(largest))

print("The smallest value is " + str(smallest))

Explanation:

Given that Most part of the code has already being written using python programming language. Our task was to add the necessary if and else statements that will check the three numbers and return the largest and smallest among them. Check the attached screenshoot for the program output, also read the comments made in  the code


Two variables named largest and smallest are assigned for you. Use these variables to store the larg
Business
Step-by-step answer
P Answered by PhD

Auditing

Identification of the elements of the most applicable fundamental principles:

(A) An entity has contacted you about performing its audit engagement. You have not previously served a client in the entity’s industry, which has many industry-specific accounting issues that are both technical and complex.

Professional competence and due care

(B) An entity has entered into a number of lease agreements. Based on the requirements of GAAP, you believe that these obligations meet the criteria for being classified as capital leases; however, the entity has elected to treat these leases as operating leases, providing full and complete disclosure of this treatment in the footnotes to the financial statements.

Fair presentation (truthful and accurate reporting)

(C) Because of a disagreement with its current auditors, an entity has contacted you about conducting its current-year audit. However, because the previous auditors have just recently resigned from the engagement, you have some questions as to whether an audit can be completed in time to meet the entity’s deadlines for providing audited financial statements to a lender.

Professional competence and due care

(D) Based on the effectiveness of the entity’s internal control, you have assessed control risk at low levels and decided that a smaller number of customer accounts need to be confirmed.

Due professional care

(E) An entity has contacted you about performing their audit engagement. This entity became aware of your firm because the husband of one of your partners is currently serving as the entity’s chief financial officer.

Independence

(F) One of your clients is currently a potential defendant in several cases because of the damage caused by one of its products. Because this entity does not believe that it is likely to receive an unfavorable outcome from this litigation, it did not disclose the potential litigation in the footnotes accompanying their financial statements.

Fair presentation

(G) You are performing tests of the client’s controls over the processing of revenue transactions to determine whether these controls are operating effectively and can be relied upon to prevent or detect misstatements.

Evidence-based approach (to understanding internal controls)

(H) One of your supervisors has requested a number of clarifications based on her review of your work on an audit engagement. A subsequent meeting with her has resolved these clarifications, and you both have concluded that your work supports the opinion on the client’s financial statements.

Risk-based approach (with regard to review and supervision)

Explanation:

Auditing standards are underpinned by some fundamental principles, including professional integrity, objectivity, professional competence and due care, confidentiality, and professional behavior.  According to ISO 19011, auditors should, in addition to observing the fundamental principles, discharge their audit responsibilities using risk-based and evidence-based approaches.  These two approaches enable the auditor to consider all audit risks and make reliable audit conclusions, respectively.

Business
Step-by-step answer
P Answered by PhD

c)Company is not performing well as we can observe that % change in sales and gross profit are increasing year by year. Return on equity is almost same year by year  

There is no much risk associated with company

Explanation:

1)Current Ratio  = current assets/current liability

2)return on equity= net profit/equity

3)Net Income(%)=net income/sales

4)Fixed Asset Turnover= Sales/Fixed asset

5)Debt ratio=debt/assets


Refer to the financial statement for the current year and prior two years. Analyze the year-to-year
Refer to the financial statement for the current year and prior two years. Analyze the year-to-year

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