which fixed alerts, if any, require audit course hero

When an Auditor sets a low acceptable audit risk?

f7) When an auditor sets a low acceptable audit risk, it means that he wants to be more certain that the financial statements are not materially misstated. 8) As acceptable audit risk is decreased, the likely cost of conducting an audit increases.

What is auditing the course?

Yes, that’s right – you can watch all the videos and access all the content for FREE. This is called auditing the course. It allows you to smash through the course and watch the videos when you want so you can still learn a lot with this method.

What should an auditor look for in a potential client?

The auditor should investigate and consider the prospective client's standing in the business community, financial stability, management's integrity, and relations with its bankers, attorneys, and previous CPA firm. The auditor should also determine whether he or she possesses the required competence and independence to do the audit.

Why does Smith request permission to communicate with the predecessor auditor?

f4) Smith, CPA, has requested permission to communicate with the predecessor auditor in order to review certain workpapers for high risk accounts for a new audit client. The new audit client's refusal to allow this communication to occur would impact Smith's decision concerning A) the auditor's ability to design audit tests.

What happens if the auditor concludes that acceptable audit risk is low but the client is still acceptable?

What does it mean when an auditor sets a low acceptable audit risk?

Why did Smith ask permission to communicate with the predecessor auditor?

What is the purpose of notification to audit staff of an upcoming engagement?

Do you need permission from the client before communicating with the successor auditor?

Should audit risk be a factor when determining if a new client should be accepted?

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What happens if the auditor concludes that acceptable audit risk is low but the client is still acceptable?

D) if the auditor concludes that acceptable audit risk is low, but the client is still acceptable, the auditor may still accept the engagement but increase the fee proposed to the client.

What does it mean when an auditor sets a low acceptable audit risk?

f7) When an auditor sets a low acceptable audit risk, it means that he wants to be more certain that the financial statements are not materially misstated.

Why did Smith ask permission to communicate with the predecessor auditor?

f4) Smith, CPA, has requested permission to communicate with the predecessor auditor in order to review certain workpapers for high risk accounts for a new audit client. The new audit client's refusal to allow this communication to occur would impact Smith's decision concerning

What is the purpose of notification to audit staff of an upcoming engagement?

C) notify the audit staff of an upcoming engagement so that personnel scheduling can be facilitated.

Do you need permission from the client before communicating with the successor auditor?

D) The predecessor auditor of a public company does not need permission from the client before communicating with the successor auditor.

Should audit risk be a factor when determining if a new client should be accepted?

A) audit risk should not be a factor when determining if a new client should be accepted.

What is an auditor test?

An auditor is observing cash sales to determine if customers are given written receipts. The objective of this test is to ensure that:

What to discuss with the audit committee?

Discuss the matter with the audit committee and make inquires as to the nature of the requirements and the audit committee's objectives for the audit.

How to test payroll bank reconciliation?

Test the payroll account bank reconciliation by tracing outstanding checks to the payroll register.

What is a Course Audit?

Coursera is one of the rare e-learning platforms that offer you the chance to access to sign up for free, and access all the courses, no matter if they are paid or free.

How to access a course?

There are two ways you can access a course for free: 1 With a 7-day free trial that you get when you sign up 2 By auditing the course

What is the first step in a course?

The first and most obvious step is to select a course that you find helpful or useful or the one that looks interesting to you.

How long is the free trial for a course?

With a 7-day free trial that you get when you sign up. By auditing the course. The first method is nice, but you only get 7 days for free, which is not enough for many students to get a lot out of a course. In this period, you get access to all of the contents, including quizzes and certifications.

Can you audit a course in a specialization?

If we click on this particular course, we’ll see that it’s comprised of several courses; we cannot audit complete specializations – instead, we’d have to audit each course within the specialization, one by one.

Is auditing a course good?

Auditing the course is very neat as you can get a lot out of it for free. You can make notes on your own and still learn a lot.

Can you audit a course?

As you can see, there is no option to audit the course, as it should be there when you try to audit an individual course. What you have to do instead is go to the “Courses” section of the specialization and select the course you’d like to audit from there: This is what pops up when we click on “Courses”.

What are the risks associated with auditing fixed assets?

Before we can determine what procedures to perform on Fixed Assets, we need to first identify the risks associated with auditing Fixed Assets: 1 Risk of Material Misstatement: Management estimates are involved in determining useful lives, the timing of recognition or derecognition, revaluations, residual values, and impairment. Biasness and human errors can lead to misstatements in asset value. Other inherent risks related to existence and rights and obligations should also be taken into account. For instance, Fixed Assets recorded may not exist at the reporting date either due to fraud or theft or the entity may not be the rightful owner of the items shown on the Fixed Assets register. 2 Control Risk: Control Risk includes failure to recognize a Fixed Asset, lack of safeguard on Fixed Assets, no authorization or approval obtained for the purchase of a large value asset based on the entity’s policy, etc.

What are the procedures for testing fixed assets?

Audit Procedures for testing Fixed Assets include Test of Controls and Substantive Tests.

What is a fixed asset review?

Reviewing the financial statements prepared by the entity and identifying if information regarding Fixed Assets have been sufficiently disclosed.

What is detection risk?

Detection Risk: Detection Risk is basically the risk that the auditor may not be able to detect the material misstatements in the reported amounts of Fixed Assets. For example, a low-value asset that has been omitted by the entity from the register may not have been detected by the auditor due to its value being lower than the testing threshold.

What is impairment policy?

Impairment Policy: Having this control in place allows the entity to properly identify assets that need to be impaired on a timely basis. Without this in place could lead to an overstatement of assets especially when there is a downturn in the entity’s business.

What is control risk?

Control Risk: Control Risk includes failure to recognize a Fixed Asset, lack of safeguard on Fixed Assets, no authorization or approval obtained for the purchase of a large value asset based on the entity’s policy, etc.

Is all fixed asset transactions recorded in the financial statements?

Completeness: All Fixed Asset transactions during the accounting period have been properly recorded in the financial statements.

What happens if the auditor concludes that acceptable audit risk is low but the client is still acceptable?

D) if the auditor concludes that acceptable audit risk is low, but the client is still acceptable, the auditor may still accept the engagement but increase the fee proposed to the client.

What does it mean when an auditor sets a low acceptable audit risk?

f7) When an auditor sets a low acceptable audit risk, it means that he wants to be more certain that the financial statements are not materially misstated.

Why did Smith ask permission to communicate with the predecessor auditor?

f4) Smith, CPA, has requested permission to communicate with the predecessor auditor in order to review certain workpapers for high risk accounts for a new audit client. The new audit client's refusal to allow this communication to occur would impact Smith's decision concerning

What is the purpose of notification to audit staff of an upcoming engagement?

C) notify the audit staff of an upcoming engagement so that personnel scheduling can be facilitated.

Do you need permission from the client before communicating with the successor auditor?

D) The predecessor auditor of a public company does not need permission from the client before communicating with the successor auditor.

Should audit risk be a factor when determining if a new client should be accepted?

A) audit risk should not be a factor when determining if a new client should be accepted.