-
A. False. Key item differences, even if found to be free of misstatements at 100% examination, still need to be projected to the population to determine the overall impact on the financial statements.
-
A. True. Developing expectations is a common practice in auditing to assess whether the recorded amounts align with what is expected, and any deviations may indicate potential inaccuracies.
-
B. False. If a security is not available in the GMS, it's important to investigate further before making an investment decision, as the unavailability could be due to various reasons, including the security not being actively traded or not meeting specific criteria for inclusion.
-
A. True. Board of Directors (BOD) meeting minutes can provide insights into related-party relationships and transactions, which can be useful in identifying items that management might not have disclosed.
Auditing Insights: Key Item Differences, Expectations in Accounting, & Investment Diligence
22. Key item differences are not projected to the population because they were examined at100% if misstatements were found.
A. True
8.False
23.We develop expectations to indicate that the recorded amount is inaccurate when it is not in line with our expectation.
A.True
B.False
24. 1 searched in GMS - 'Security Search' a fund 1 want to purchase. It seems not available in GMS. I will go ahead and purchase the fund A.True
B.False
25.We inspect BOD meeting minutes to help identify related-party relationships and transactions that management has not previously identified or disclosed.
A.True
B.False
