which of the following account would a cpa likely not confirm during the course of an audit?

What would most likely cause a CPA not to accept an audit?

Question: 1. Which of the following factors most likely would cause a CPA not to accept a new audit engagement? 1 point Management reputation for failing to provide schedules to prior auditors on a timely basis. The CPA's inability to review the predecessor auditor's working papers.

What should a CPA consider in assessing whether to accept a client?

In assessing whether to accept a client for an audit engagement, a CPA should consider: A) the current financial health of the prospective client. B) the integrity of management. C) the CPA's overall engagement risk. D) All of these choices are correct.

When should a CPA make inquiries of the predecessor auditor?

When a CPA is approached to perform an audit for the first time, the CPA should make inquiries of the predecessor auditor. This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor in determining: A) whether the predecessor's work should be utilized.

Why does the CPA firm believe the client’s investments are undervalued?

The CPA firm believes that the client will never ultimately realize a substantial portion of the investments because the market value is much lower than the cost; the client has fully disclosed the facts in notes to the financial statements.

What factors most likely cause a CPA to decide not to accept a new audit engagement?

Which of the following factors most likely would cause a CPA to decide not to accept a new audit engagement? The CPA's lack of understanding of the prospective client's internal auditor's computer-assisted audit techniques.

Which situation would likely make an accountant not accept a new audit engagement?

Auditor shall not accept an audit engagement if the management imposes any limitation on the scope which will result in the auditor disclaiming an opinion on the financial statements, unless required by law or regulation to do so.

What characteristics should an audit confirmation response possess if a CPA firm is to consider it to be valid evidence?

What characteristics should an audit confirmation response possess if a CPA firm is to consider it to be valid evidence? Positive confirmation requests are addressed to the debtor asking for a reply. They are ordinarily sent with balances due on them. A reply is required from the client's customer in every case.

What should an auditor do if a confirmation response is not received?

When the auditor has not received replies to positive confirmation requests, he or she should apply alternative procedures to the nonresponses to obtain the evidence necessary to reduce audit risk to an acceptably low level.

Which of the following is not generally included in an audit engagement letter?

Which of the following is not included in the engagement letter? Representations that the financial statements were prepared in accordance with generally accepted accounting principles.

What kind of things an auditor should consider before accept the engagement?

Assuming independence and requisite technical abilities, the pre- acceptance evaluation of a prospective audit engagement normally focuses on three factors: 1) personal integrity of the prospective client's management and principals, 2) presence of circumstances pointing towards unusual risks in the engagement or ...

Which of the following is not the characteristic of audit evidence?

Answer:D. be persuasive enough to enable the auditor to issue an audit report . the auditor lacks the competence to evaluate the evidence . quality of evidence .

Which of the following is likely to be determined first when performing tests of details for accounts receivable?

either by error or fraud. Which of the following is likely to be determined first when performing tests of details for accounts receivable? Accounts receivable in the aged trial balance agree with related master file amounts, and the total is correctly added and agrees with the general ledger.

What is a negative confirmation?

What Is a Negative Confirmation? Negative confirmation is a letter or document requesting that the recipient should only respond to the sender if there were an issue with the contents of the message or the recipient wanted to opt-out of the event that the letter had addressed.

Under which of the following circumstances would it be advisable for the auditor to confirm accounts payable with creditors?

Under which of the following circumstances would it be advisable for the auditors to confirm accounts payable with creditors? Creditor statements are not available and internal control over accounts payable is unsatisfactory.

What is an accounts receivable confirmation?

What is an Accounts Receivable Confirmation? When an auditor is examining the accounting records of a client company, a primary technique for verifying the existence of accounts receivable is to confirm them with the company's customers. The auditor does so with an accounts receivable confirmation.

What are the circumstances under which confirmation of accounts receivable is not required?

RECEIVABLE CONFIRMATIONS ARE NOT ALWAYS required if accounts receivable are immaterial, the use of confirmations would be ineffective or combined inherent risk and control risk are low and analytics or other substantive tests would detect misstatements.