Analyzing client environment for potential risk

Assignment Help Financial Accounting

Reference no: EM131211106

1) When analyzing a client's environment for potential risk, which of the following is the auditor least likely to consider?

Client's application of accounting policies

Client's objectives and strategies

Client's methods to measure performance

Client's performance compared to competitors

2) How long must audit working papers be retained for audits of public companies?

3 years

5 years

7 years

10 years

3) In which audit procedure to gather evidence does the auditor independently perform client processes?

Inspection of records and documents

Observation of processes

Recalculation of accuracy

Reperformance of procedures

4) When analyzing a client's industry for potential risks, which of the following is the auditor least likely to consider?

Bargaining power of customers

Barriers to entry

Client share of the market

Strength of competitors

Reference no: EM131211106

Questions Cloud

Determined that estimated overhead costs : At the beginning of the year, Vuncor, Inc., determined that estimated overhead costs would be $600,000, while actual overhead cost for the year totaled $650,000. Furthermore, it was determined that the estimated allocation basis would be 60,000 direc..

Depreciation under the units-of-production method : Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. What journ..

Access the accounting standards codification : Access the Accounting Standards Codification and determine the specific citation for each of the following items:

Function of audit documentation : Which of the following identities and histories is the auditor least likely to investigate when considering a new client? A function of audit documentation is that it should contain evidence of significant items. Which of the following items would be..

Analyzing client environment for potential risk : How long must audit working papers be retained for audits of public companies? In which audit procedure to gather evidence does the auditor independently perform client processes? When analyzing a client's environment for potential risk, which of the..

What is profit for year after adjusting for these? errors : After the accountant of Merkel Engineering Co had prepared the draft financial statement for the year ended 31 March Year? 5, the following errors came to? light: A trade receivable of? £3,500 was recorded as outstanding at the year end but had been ..

Best describes this accrual transaction type : Finke Company's employees are paid each Friday for hours worked the previous week. At the end of the accounting period, Finke Company accrues $3,200 for earned salaries that have not yet been paid. Which of the following best describes this accrual t..

Events is an asset exchange transaction : Which of the following events is an asset exchange transaction?

Using a horizontal financial statements model : Warner Company received $48,000 cash in advance for services to be performed over the one-year period from September 1, 2015 through August 31, 2016. Using a horizontal financial statements model, which of the following statements does not correctly ..

User Account

All Pages