Indicate Whether You Agree or Disagree with the Following Statements

question 46

Essay

Indicate whether you agree or disagree with the following statements and explain your reasoning.
a) Paula Faconi has just completed a risk assessment and has identified key risk factors at Darwin Industries. When asked by one of her staff members "What's next?", she replies: "Now that we have identified the risks, its time to perform some planning in order to obtain sufficient appropriate audit evidence."
b) Roni Khali was assigned to the Inglis Glass Company audit. She was ensuring that when recognizing revenues, all transactions and events that should have been recorded have been recorded. She was testing the occurrence assertion.
c) Harvey Jarvis, the group partner was reviewing the work of Jacob Barnes on the Bazzle Gold account. Jacob asked Harvey for an explanation on how audit risk would affect his work. Harvey answered: "Audit risk affects the quantity and quality of evidence gathering."
d) Benoit Chausson, CPA made the following true statement: "The appropriateness of audit evidence refers to its relevance and reliability." He then added:

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Definitions:

Principal

The initial amount of a loan or investment, excluding any interest or dividends.

Agent

An individual or entity authorized to act on behalf of another.

Contract

A legally binding agreement between two or more parties that outlines obligations each party must fulfill.

Liable

Being legally responsible for something, especially in the context of debts or legal wrongs.