Indicate Whether You Agree or Disagree with the Following Statements

question 43

Essay

Indicate whether you agree or disagree with the following statements and explain your reasoning.
a) Mona Harmon has just completed a risk assessment and has identified key risk factors at Bonavista Emergis. 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) Teresa Dziuba was assigned to the Heathcliff Energy 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) Steve Slopak, the group partner was reviewing the work of Manny Fernandez on the Lake Shore Gold account. Manny asked Steve for an explanation on how audit risk would affect his work. Steve answered: "Audit risk affects the quantity and quality of evidence gathering."
d) Frank Tutino, CPA made the following true statement: "The appropriateness of audit evidence refers to its relevance and reliability." He then added:
"Reliable information is logically connected to an assertion"
"Relevant information reflects the true state of the information"

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Definitions:

Production Possibilities Frontier

A graphical representation showing the maximum quantity of different goods that a society can produce with its available resources and technology, assuming efficient use of resources.

Opportunity Cost

The cost involved when the second most advantageous option is not selected during decision-making.

Feasible Outcomes

Possible results or conclusions that can realistically be achieved in a given scenario or model.

Computerized Assembly Line

A production line in which computers control the assembly of products, enhancing efficiency, precision, and consistency.