Question 7 It is the auditor\'s job to review the client\'s estimate to evaluate
ID: 2450280 • Letter: Q
Question
Question 7
It is the auditor's job to review the client's estimate to evaluate whether it has been determined in accordance with the applicable financial reporting framework. To do this, the auditor considers whether the allowance for doubtful accounts is properly valued based on
A. the accounts written off during the current year
B.the accounts receivable balance at the end of the prior year
C.current economic conditions
D. the economic status of past customers
E. the net receivable balance that should represent the amount of cash the company expects to collect in the current year
F. both a and c
G. both b and d
5 points
Question 8
The auditing standards require the auditor to control the risk of material misstatement due to fraud to an acceptably low level.
-True
-False
5 points
Question 9
Which of the following are audit procedures used by the auditor to gather evidence?
A.anecdotal procedures
B.inspection
C.analysis
D. inquiry
E. communication
F. both a and c
G. both b and d
A. the accounts written off during the current year
B.the accounts receivable balance at the end of the prior year
C.current economic conditions
D. the economic status of past customers
E. the net receivable balance that should represent the amount of cash the company expects to collect in the current year
F. both a and c
G. both b and d
Explanation / Answer
7.
F. both a and c is the answer. It is the auditor's job to review the client's estimate to evaluate whether it has been determined in accordance with the applicable financial reporting framework. To do this, the auditor considers whether the allowance for doubtful accounts is properly valued based on the accounts written off during the current year current economic conditions.
8.
True. The auditing standards require the auditor to control the risk of material misstatement due to fraud to an acceptably low level.
9.
F. Both a and c is the answer. Inspection and inquiry are audit procedures used by the auditor to gather evidence.
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