Which of the following factors should an external auditor should perform at the preliminary engagement (for...
Which of the following factors should an external auditor should perform at the preliminary engagement (for an F/S audit) activities?
The reporting status of the internal auditor within the organization.
Whether policies prohibit the internal auditor from auditing areas where relatives are employed.
Whether the board of directors, audit committee, or owner-manager oversees employment decisions related to the internal auditor.
None of the above choices are correct
Homework Answers
Which of the following factors should an external auditor should perform at the preliminary engagement (for an F/S audit) activities?
None of the above choices are correct.
Add Answer to:
Which of the following factors should an external auditor should
perform at the preliminary engagement (for...
1) According to the IPPF, an internal auditor assigned to an audit engagement: A) Must be an...
1) According to the IPPF, an internal auditor assigned to an audit engagement: A) Must be an expert in the area being audited B) Is responsible for detecting fraud C) Must be proficient and exercise due professional care D) Must be a Certified Internal Auditor E) All of the above 2) Internal auditing needs to consider risk in A) Developing the annual audit plan B) Conducting audit engagements C) Providing assurance to the board on the effectiveness of risk management processes D) All of the above E) None of the...
Auditing w ways the external the internal auditors 7-34 Randall, Inc., is a private company that...
Auditing
w ways the external the internal auditors 7-34 Randall, Inc., is a private company that may The company has an active audit committee audit committee consists of two outside du company chief financial officer. The audit co provide oversight of financial reporting, in accounting policies and unusual transactio reviews and approves any related-party operating units are performed by company that manufactures heavy machinery active audit committee and board of director two outside directors and Howard Kress, the The audit...
3) Role of internal audit function 30 Chapter 1: Auditing and Internal Contrel Management ii External...
3) Role of internal audit function
30 Chapter 1: Auditing and Internal Contrel Management ii External auditor i Internal audit To whom should the Director of Internal Audits report. Explain your answer. Comment on the audit committee member's per- spective as to the committee's current composition. 3. Role of Internal Audit Function Nano Circuits Inc. is a publicly traded company that pro- duces electronic control circuits, which are used in many products. In an effort to comply with SOx, Nano...
Every year, the board of directors of Northern Power, a distributor of electricity, commissions an effectiveness...
Every year, the board of directors of Northern Power, a distributor of electricity, commissions an effectiveness evaluation of its audit committee. An independent consultant with expertise in governance reviews the means by which the audit committee fulfills its responsibilities, as set out in its charter. Specifically, it evaluates how the members of the audit committee: Oversee the quality and reliability of financial reporting and disclosures Understand the key risks facing the organization and the processes management uses to identify, assess,...
1.Which of the following is not one of the steps the auditor must perform to assess...
1.Which of the following is not one of the steps the auditor must perform to assess control risk at less than “high” for a financial statement assertion? A) obtain an understanding of internal control B) identify controls that address all relevant assertions in the financial statements C) make a preliminary assessment of control risk based on the design of relevant controls D) test the operating effectiveness of the controls that must be effective to reduce control risk 2.Which of the...
5. Which of the following is the most accurate definition of the concept of materiality? A....
5. Which of the following is the most accurate definition of the concept of materiality? A. Information is material if it is greater than 5 to 10% of profit before tax B. Information is material if it is greater than 1 to 2% of total assets C. Information is material if is within a range of figures calculated by the auditor using figures from the draft financial statements at the planning stage Information is material if its misstatement or omission...
The PCAOBs recently revised auditor reporting standard includes a requirement for he auditor to communicate ortical...
The PCAOBs recently revised auditor reporting standard includes a requirement for he auditor to communicate ortical udt matters. Crical audit maters include those matters during the audit that involved diffcult, subjective, or complex auditor judgments or that posed dfoulty to the auditor in obtaining sufcient appropriate evidence or in foming the opinion on the financial statements Similarly, the Intemational Auditing and Assurance Standards Board (AAS) recently revised the auditor's report in the ISAS to require auditors to communicate key audit...
Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee
1. Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. Management's failure to renegotiate unfavorable long-term purchase commitments.B. Recurring operating losses that may indicate going concern problems.C. Evidence of a lack of objectivity by those responsible for accounting decisions.D. Management's current plans to reduce its ownership equity in the entity. 2. After obtaining an understanding of internal control and arriving at a preliminary assessed level...
1. Which of the following are the established criteria against which management's assertions are judged in...
1. Which of the following are the established criteria against which management's assertions are judged in an audit? a- Generally Accepted Accounting Principles - Generally Accepted Auditing Standards C- Consistently Reported Accounting Procedures d- Fairness in application of accounting principles 2. Which of the following criteria is unique to the auditors assurance function? a. General competence b- Familiarity with the particular industry of which the client is part C- Due professional care d- Independence 3. Independent auditing can best be...
Question: Question 183 Processing auditor test data using the client's software application _______. -will allow the...
Question: Question 183 Processing auditor test data using the client's software application _______. -will allow the auditor to verify manual controls within the software application are functioning as designed -may corrupt the client's system, and should not be attempted -will allow the auditor to verify that the software application is functioning as designed -should be performed without the knowledge of the client's senior management Question 19 The tolerable deviation rate _______. -relates to how many immaterial misstatements the auditor finds...
Auditing
w ways the external the internal auditors 7-34 Randall, Inc., is a private company that may The company has an active audit committee audit committee consists of two outside du company chief financial officer. The audit co provide oversight of financial reporting, in accounting policies and unusual transactio reviews and approves any related-party operating units are performed by company that manufactures heavy machinery active audit committee and board of director two outside directors and Howard Kress, the The audit...
3) Role of internal audit function
30 Chapter 1: Auditing and Internal Contrel Management ii External auditor i Internal audit To whom should the Director of Internal Audits report. Explain your answer. Comment on the audit committee member's per- spective as to the committee's current composition. 3. Role of Internal Audit Function Nano Circuits Inc. is a publicly traded company that pro- duces electronic control circuits, which are used in many products. In an effort to comply with SOx, Nano...
5. Which of the following is the most accurate definition of the concept of materiality? A. Information is material if it is greater than 5 to 10% of profit before tax B. Information is material if it is greater than 1 to 2% of total assets C. Information is material if is within a range of figures calculated by the auditor using figures from the draft financial statements at the planning stage Information is material if its misstatement or omission...
The PCAOBs recently revised auditor reporting standard includes a requirement for he auditor to communicate ortical udt matters. Crical audit maters include those matters during the audit that involved diffcult, subjective, or complex auditor judgments or that posed dfoulty to the auditor in obtaining sufcient appropriate evidence or in foming the opinion on the financial statements Similarly, the Intemational Auditing and Assurance Standards Board (AAS) recently revised the auditor's report in the ISAS to require auditors to communicate key audit...
1. Which of the following are the established criteria against which management's assertions are judged in an audit? a- Generally Accepted Accounting Principles - Generally Accepted Auditing Standards C- Consistently Reported Accounting Procedures d- Fairness in application of accounting principles 2. Which of the following criteria is unique to the auditors assurance function? a. General competence b- Familiarity with the particular industry of which the client is part C- Due professional care d- Independence 3. Independent auditing can best be...
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