Auditors are required to obtain a sufficient understanding of an entity's internal control. This understanding is required by the performance principle of GAAS. What are some of the goals (purposes) for conducting an evaluation of an entity's internal control?
Auditors are required to obtain a sufficient understanding of an entity's internal control. This understanding is...
Auditors are required to obtain a sufficient understanding of an entity's internal control. This understanding is required by the performance principle of GAAS. What are some of the goals (purposes) for conducting an evaluation of an entity's internal control? B 1 U TE T? TE lal 1 E WI lilil á TT O Word(s)
Auditors are required to obtain a sufficient understanding of each component of a client’s internal control. This understanding is used to assess control risk and plan the audit of the client’s financial statements. Explain for what purposes an auditors’ understanding of the internal control components should be used in planning an audit.
When obtaining an understanding of an entity's internal control in a financial statement audit at a non-public company, an auditor is not obligated to: Multiple Choice determine whether the control activities have been placed in operation. document the understanding of the company's internal control system. search for significant deficiencies in the operation of the internal control system. perform procedures to understand the design of the internal control system.
When obtaining an understanding of an entity's internal control in a financial statement audit at a non-public company, an auditor is not obligated to: Multiple Choice A. document the understanding of the company's internal control system. B. determine whether the control activities have been placed in operation. C. search for significant deficiencies in the operation of the internal control system. D. perform procedures to understand the design of the internal control system.
MULTIPLE CHOICE QUESTIONS! 1)In obtaining an understanding of an entity's internal control relevant to audit planning, an auditor is required to obtain knowledge about the a) Controls related to each principal transaction class and account balance. b) Consistency with which controls are currently being applied. c) Effectiveness of controls that have been implemented. d) Design of the controls pertaining to internal control components. 2) In a good system of segregation of duties, which of the following duties should be segregated?...
When assessing control risk, an auditor is required to document the auditor's: Understanding of the Entity's Control Environment | Basis for the Auditor's Risk Assessment (1) Yes No (2) No Yes (3) Yes Yes (4) No No *Note: The first column of Y/N is for Understanding of the Entity's Control Environment, and the second column is for Basis of the Auditor's Risk Assessment.
Obtaining a “Sufficient” Understanding of Internal Control- “But we can’t disregard generally accepted auditing standards like Jones proposes!” You will be given a short scenario and asked about your opinion on the recommendations made.
Chapter 7:Internal Control Question1: Because of the Inherent inconsistency of automated controls, auditors will test them at various times in the year to determine their operating effectiveness. True False Question2: A correct response by management to an assessment of risk could include taking no action because the risk is consistent with the risk tolerance of the organization. True False Question3: A primary objective of procedures performed to obtain an understanding of internal control is to provide an auditor with Knowledge...
Every audit firm has its approach for understanding a client’s internal control structure. Some firms use a standardized internal control questionnaire to evaluate controls that are in place whereas other firms do not rely on internal controls at all and plan their audits as if there are no controls in place or consider controls as not effective. Evaluate each of these approaches to assess a client’s internal controls from an external auditor’s perception. Include in your evaluation: What effect, if...
Every firm has its approach for understanding a client’s internal control structure. Some firms use a standardized internal control questionnaire to evaluate controls that are in place whereas other firms do not rely on internal controls at all and plan their audits as if there are no controls in place or consider them as not effective. Assume you are training a new team of auditors for your CPA firm. Prepare a PowerPoint presentation to present the pros and cons of...