Question

True Or False

10. Management has the responsibility of adopting sound accounting policies and development of prudent judgements and estimates. 11. The audit committee's responsibility is one of oversight and monitoring. 12. One of the auditor's responsibilities is to establish and maintain the client's internal control system. 13. Client management appoint, approve, and review external audit function. 14. The Finarſcial Accounting Standards Board develop accounting standards for public and nonpublic companies. 15. The AICPA issues the CPA certificates.

Answer 1

TRUE OR FALSE

10. TRUE, the responsibility for adopting the sound accountig policies and standards & maintaining internal controls are to be rest with the hands of company management.

11. TRUE, Oversight over the internal audit includes close monitoring and reporting on the health of financial, operational and the company control systems.

12. TRUE , Auditors have the responsibility of establish control over the internal system. it includes , control the environment, risk assessment process, control activities like; monitoring of of client's control.

13 . FALSE , client management is the method of management of relationship between company and it's clients regardless of industry. External auditors are to be appointed by the internal shareholders of company.

14 . TRUE, the financial accounting standards board set accounting rules for both public and private companies and non-profit organizations in US.

15. TRUE, In the US , CPA is a designation given by AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ( AICPA ).