Question 1

Restatements are required when the auditor determines that a:
A) Type I event has occurred
B) Type II event has occurred
C) material misstatement does not exist in the financial report
D) material misstatement does exist in the financial report

Accepted Answer

Restatements are required when the auditor determines that there is a material misstatement in the financial report, indicating that the previously issued financial statements were incorrect and need to be corrected.

Question 2

What happens to the sufficiency of audit evidence collected if, in the final review, new information causes the engagement partner to decide that a lower materiality threshold is required and, as a result, the partner reduces planning materiality for the audit?
A) more evidence may be required
B) less evidence may be required
C) the client may be asked to make correcting entries
D) more evidence is required and the client may be asked to make correcting entries

Accepted Answer

The answer of What happens to the sufficiency of audit...

Question 3

At the end of the audit, management and the auditor must decide which possible adjustments will be:
A) corrected in the financial statements or notes
B) unknown projected errors
C) 'waived', that is; left uncorrected
D) corrected or waived in the financial statements

Accepted Answer

The answer of At the end of the audit, management...

Quiz 15: Completing the Audit or Review

Restatements are required when the auditor determines that a:

What happens to the sufficiency of audit evidence collected if, in the final review, new information causes the engagement partner to decide that a lower materiality threshold is required and, as a result, the partner reduces planning materiality for the audit?

At the end of the audit, management and the auditor must decide which possible adjustments will be: