Author Archives: John

What is the size of the claim relative to the size of the respondent?

How to build a disclosure system to meet the difficulties posed by third-party funding (TPF) in arbitration and compare regulations in Hong Kong and Singapore. Below are the key variables that determine a third-party funder’s assessment of the value of an arbitration claim. They are: (1) Jurisdiction—what is the strength of the legal arguments raised […]

What can you conclude from this result regarding the topic?

Mini Study Part 2 1. Treat your data just as you would one of the datasets from the homework. Be sure you include appropriate measures of central tendency and dispersion etc. 2 Construct a frequency distribution using 5 –8 classes. 3 Create 2 different but appropriate visual representations of your data (pie chart, bar graph, […]

. List the eight types of audit evidence included in this chapter and give two examples of each

AUDIT EVIDENCE CONCEPT CHECK 1. Identify the six characteristics that determine the reliability of evidence. For each characteristic, provide one example of a type of evidence that is likely to be reliable. 2. List the eight types of audit evidence included in this chapter and give two examples of each

Identify the four audit evidence decisions that are needed to create an audit program.

AUDIT EVIDENCE After studying this chapter, you should be able to 7-1 Contrast audit evidence with evidence used by other professions. 7-2 Identify the four audit evidence decisions that are needed tocreate an audit program. 7-3 Specify the characteristics that determine the persuasiveness of evidence. 7-4 Identify and apply the eight types of evidence used […]

Which of the following best describes the reason why an independent auditor reports on financial statements?

MULTIPLE CHOICE QUESTIONS FROM CPA EXAMINATIONS 6-21 (OBJECTIVE 6-1) The following questions concern the reasons auditors do audits. Choose the best response. a. The major reason an independent auditor gathers audit evidence is to (1) form an opinion on the financial statements. (2) detect fraud. (3) evaluate management. (4) assess control risk. b. Which of […]

What is the relationship of the four phases to the objective of the audit of financial statements?

AUDIT RESPONSIBILITIES AND OBJECTIVES REVIEW QUESTIONS 6-1 (OBJECTIVE 6-1) State the objective of the audit of financial statements. In general terms, how do auditors meet that objective? 6-2 (OBJECTIVE 6-2) Describe management’s responsibility for the financial statements. Do you believe the CEO and CFO of a public company perceive an even greater responsibility as a […]

Distinguish management’s responsibility for the financial statements from the auditor’s responsibility for verifying those statements.

AUDIT RESPONSIBILITIES AND OBJECTIVES After studying this chapter, you should be able to 6-1 Explain the objective of conducting an audit offinancial statements and an audit of internal controls. 6-2 Distinguish management’s responsibility for the financial statements from the auditor’s responsibility for verifying those statements. 6-3 Explain the auditor’s responsibility for discovering material misstatements due […]

Explain how an engagement letter might affect an auditor’s liability to clients under common law.

REVIEW QUESTIONS 5-1 (OBJECTIVE 5-1) Lawsuits against CPA firms continue to increase. State your opinion of the positive and negative effects of the increased litigation on CPAs and on society. 5-2 (OBJECTIVE 5-2) Distinguish between audit risk and audit failure. Why is there at least some level of audit risk on every audit engagement? 5-3 […]

What are the auditor’s possible defenses against lawsuits filed under the Securities Exchange Act of 1934?

LEGAL LIABILITY CONCEPT CHECK 1. What are the four major sources of auditors’ legal liability? 2. Compare and contrast traditional auditors’ legal responsibilities to clients and third-party users under common law. How has that law changed in recent years? 3. What are the auditor’s possible defenses against lawsuits filed under the Securities Exchange Act of […]