Describe the objective of audits of financial statements, the types of audit reports, and the importance of effective internal controls. B is correct. Fora publicly traded firm in the United States, the auditormust express an opinion as to whether the company’s internal control system is in ac...
Which of the following statements is most accurate about the responsibilities of an auditor for a publicly traded firm in the United States? The auditor must: A.state that the financial statements are prepared according to generally accepted accounting principles. B.ensure that the financial statement...
A minimum amount of technical knowledge of and experience in the industry in which the audit operates.
and create a tone from the top that deters fraudulent activity. This holds both management and employees accountable to execute their roles and responsibilities. In this post, we will review a number of topics to gain an understanding of an auditor’s responsibilities in completing an audit ...
Which of the following is not one of the responsibilities of an auditor under the principles underlying an audit? A. possess appropriate competence and capabilities B. comply with ethical requirements C. plan work and supervise assistants D. maintain professional skepticism and exercise ...
Auditor independence.This is a shared responsibility of the audit firm, the issuer and its audit committee. The SEC statement suggests that audit committees consider corporate changes or other events that could affect independence. U.S. Generally Accepted Accounting Principles (GAAP).The audit committe...
Michael R. Young
Given the risks of an expensive audit, paying strict attention to the rules is the only smart decision you can make ~ Kathy Burlison Auditors are the experts who collect and review audited financial statements. An auditor accountant regularly monitors financial processes and ensures that companies ...
Auditor Responsibilities and the Law Geoffrey Aronow and Hartwell Harris* The pressure to establish increased auditor responsibility has been stronger in some decades and weaker in others. Recently, it has tended toward the former. The Sarbanes-Oxley Act of 2002 and its implementation are the latest...
Avoid Familiarity If an auditor has been with a firm for a long period of time, then his objectivity can come into question. It is mandatory for companies to rotate lead auditors after a period of 5 years.