Question
Whether sufficient appropriate audit evidence has been
obtained to reduce audit risk to an acceptable low level, and thereby enable the auditor to draw reasonable conclusion on which to base the auditor’s opinion, is a matter of ________.Solution
Professional Judgement is the application of relevant training, knowledge and experience within the context provided by auditing, accounting and ethical standards in making informed decisions about the courses of action that are appropriate in the circumstances of the audit engagement. It is required with respect to Materiality and audit risk, nature, timing and extent (NTE) of audit procedures, evaluating sufficiency & appropriateness of audit procedures, evaluating management judgement in applying applicable FRF and drawing conclusions based on audit evidence As per the SA 200, the other key requirements of an Independent Auditor include: · Ethical requirements – comply with relevant ethical requirements and it includes adhering to independence with respect to audit engagements. code of ethics are issued by ICAI. Examples – integrity, objectivity, professional competence and due care, confidentiality, professional behaviour · Professional Skepticism – attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud and a critical assessment of audit evidence. Alertness is required with respect to Contradictory audit evidence, reliability of documents, conditions indicating possible fraud, circumstances requiring audit procedures in addition to those suggested in SAs. · Sufficient Appropriate Audit Evidence and Audit Risk - Sufficiency refers to quantum and appropriateness refers to quality. Purpose is to reduce audit risk to an acceptably low level and thereby enable the auditor to draw reasonable conclusions on which to base the auditor’s opinion.
Statements:
All hole are whole.
Each whole is lot.
Some hole are combo.
No whole is pack.
Conclusions:
I. Some...
Statement:
All Planets are Stars
Some Stars are Earth
Only a few Suns are Planets
Conclusion:
I. All Sun being Star i...
Statements:
All apples are mango
No mango is a grapes
No apple is a papaya
Conclusions:
I. Some apples...
Statement:
Some dogs are cats.
No lion is a dog.
Conclusions:
I. Some cats are lions.
II. Some cats are not lio...
Statements-
1.All bulbs are tubes.
2.Some tubes are knives.
3.All knives are frames.
4.Some frames are bulbs.
Conclus...
In the question three statements are given, followed by three conclusions, I, II and III. You have to consider the statements to be true even if it see...
Statement:
Each snickers are kit Kat.
Only a few snickers are dairy milk.
Few snickers are not munch.
Conclusion:...
Statements: Some trucks are buses.
All buses are cars.
All cars are bikes.
Conclusions: I. Some trucks are bikes.
II....
Read the given statements and conclusions carefully. Assuming that the information given in the statements is true, even if it appears to be at varianc...
Statements:
Each Local is Town.
Some Towns are State.
No Town is Village.
Conclusions:
I: No Local is Village.
II: Some State are Locals.