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Auditing and Assurances Eighth Edition Week One Homework

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Auditing and Assurances Eighth Edition Week One Homework
1-26:
a. Auditing evidence could be defined as the more relevant and accompanying data and information which helps the auditor in their evaluation of financial documents.
b. The management of an accounting firm will ultimately make the assertions about the many parts of the financial statements that they are handling or are in question. Such assertions are a tool to assist them in making sure that they have not overlooked any components that might be detrimental to the overall integrity of their reports. For example, if a given financial institution lists accounts that might be receivable for a specific amount, the management is “asserting” that such receivables are truly in the institution’s possession and are appropriately valued or appraised and are not just “approximations.”
c. When searching for and evaluating evidence auditors must be concerned about the reliability and relevance of the evidence that they are utilizing in their reports. Otherwise, invalid derivations and conclusions will be reached in regards to the management’s assertions. Furthermore, the reliability of the evidence that they use will attest as to the ability of such evidence to show the real state of their assertions.

1-27:
a. There are many phases to an audit that is to be evaluated and executed properly. First of all, auditors must determine if they are going to accept a new client or continue with a client that is already using them for their services, which is known as “client acceptance/continuance.” Next, they will have to consider the “preliminary engagement activities” to ascertain the requirements of the auditing team that will have to be met, establish the independence of the team and the firm in general, and gain a clear understanding with their client as to the services that will be completed and any other…...

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