Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 2, Problem 9RQ
To determine
Discuss the criticism of auditing standards.
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Auditing standards have been criticized by different sources forfailing to provide useful guidelines for conducting an audit. The critics believe thestandards should be more specific to enable practitioners to improve the quality of theirperformance. As the standards are now stated, some critics believe that they provide littlemore than an excuse to conduct inadequate audits. Evaluate this criticism of auditingstandards
Why is the audit team more concerned with controlling the exposure to the risk of overreliancethan with the risk of underreliance?a. Only the risk of overreliance results in an incorrect audit decision.b. The risk of underreliance is not related to the audit team’s study and evaluation of internalcontrol.c. The risk of overreliance can ultimately result in the audit team’s failing to reduce auditrisk to acceptable levels.d. The risk of underreliance can be controlled by performing tests of controls during theinterim period.
Which of the following is not a function or benefit of a
checklist?
Providing evidence of audit planning
Reducing workload for the auditee
Reducing risk of auditor bias
Maintaining the audit pace and continuity
Chapter 2 Solutions
Auditing And Assurance Services
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - Prob. 10RQ
Ch. 2 - Prob. 11RQCh. 2 - State what is meant by the term peer review. What...Ch. 2 - Prob. 13.1MCQCh. 2 - Prob. 13.2MCQCh. 2 - Prob. 13.3MCQCh. 2 - Prob. 14.1MCQCh. 2 - Prob. 14.2MCQCh. 2 - Prob. 14.3MCQCh. 2 - Prob. 15.1MCQCh. 2 - Prob. 15.2MCQCh. 2 - Prob. 15.3MCQCh. 2 - Prob. 16DQPCh. 2 - Prob. 17DQP
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Similar questions
- Explain the threats to professional skepticism that might influence audit judgment.arrow_forwardWhich of the following BEST (select one) describes why auditors must maintain independence? a) The value of the audit report is higher if the report is free of bias. b) The value of the audit report is lower if the report is free of bias. c) The value of the audit report is generally not impacted by the independence of the auditor. d) The value of the audit report depends on the due professional care of the auditor performing the work.arrow_forwardAudit firms are expected to establish and maintain a system of quality control. PCAOB inspections often cite the lack of quality controls as a deficiency of audit firms. What role does leadership play in developing the kind of quality control system that supports ethical decision making in audits?arrow_forward
- Which of the following is not a benefit claimed for the practice of determining materiality inthe initial planning stage of an audit?a. Being able to fine-tune the audit work for effectiveness and efficiency.b. Avoiding the problem of doing more work than necessary (overauditing).c. Being able to decide early what type of audit opinion to issue.d. Avoiding the problem of doing too little work (underauditing).arrow_forwardCan the auditor obtain more audit evidence to compensate for the lack of perceived appropriateness (quality) of the evidence which is available?arrow_forwardWhich of the following statements is NOT accurate as it relates to testing and the audit risk? professional judgement is required in determining the nature, timing, and extent of tests O the nature, timing, and extent of tests are performed to decrease audit risk to an acceptable level O the nature, timing, and extent of tests are determined by the client's management the nature, timing, and extent of tests are determined by the risk assessmentarrow_forward
- Which of the following is least likely to be considered an appropriate response relating to risks the auditors identify at the financial statement level? Assign more experienced staff, Incorporate additional elements of unperdictability in the selection of audit procedures, Increase the scope of auditor procedures, Emphasize the need to remain neutral, rather than to excercise professional skepticismarrow_forwardWhich of the following statements is not correct? A) There are many ways an auditor can accumulate evidence to meet overall audit objectives. B) Sufficient appropriate evidence must be accumulated to meet the auditor's professional responsibility. C) It is appropriate to minimize the cost of accumulating evidence. D) Gathering evidence and minimizing costs are equally important considerations that affect the approach the auditor selects. E) All of the abovearrow_forwardA CPA wishes to use representation letter as a substitute for performing other audit procedures. Doing so: Violates professional standards, Is acceptable, but should only be done when cost justified, Is acceptable, but only for non-public clients, Is acceptable and desirable under all conditionsarrow_forward
- Which of the following are common issues with benchmarking tool used by internal auditors? Benchmarking need face-to-face contact or discussion with other organizations O Benchmarking information is often proprietary and organizations are reluctant to share it with other organizations. Benchmarking can show areas of excellence within the organization but internal audits should focus on exception-based reporting O Typical metrics used in benchmarking are time, quality, and costarrow_forwardDo you think the concept of materiality is incompatible with ethical behavior? Consider in your answer how materiality judgments affect risk assessment in an audit of financial statements.arrow_forwardWhy is professional skepticism important when completing an audit? Please explain.arrow_forward
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