In the audit of a non-public company, when might an auditor decide not to test internal...
In the audit of a non-public company, when might an auditor decide not to test internal controls?In the audit of a non-public company, when might an auditor decide not to test internal controls?
Homework Answers
In the audit of a non-public company an auditor might decide not to test internal controls when – it is more cost effective to test ending account balances.
This happens usually when financial statement account has a limited number of transactions affecting it. So for example if in a case of a non-public company there are not many transactions that affects its goodwill account then testing of internal controls over goodwill is not that important and testing ending account balances is better and more cost effective as well.
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In the audit of a non-public company, when might an auditor decide not to test internal...
In the audit of a non-public company, when might an auditor decide not to test internal...
In the audit of a non-public company, when might an auditor decide not to test internal controls? a. it is more cost effective to test ending account balances b. the controls are not operating effectively c. assessment of control risk is high d. all of the above
In the audit of a non-public company, when might an auditor decide not to test internal...
In the audit of a non-public company, when might an auditor decide not to test internal controls? a. It is more cost effective to test ending account balances b. The controls are not operating effectively c. Assessment of control risk is high d. All of the above
When obtaining an understanding of an entity's internal control in a financial statement audit at a...
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When obtaining an understanding of an entity's internal control in a financial statement audit at a...
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.
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When conducting an audit, the auditor has a responsibility to design audit tests to address the...
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When creating an audit program and designing audit procedures, _ an auditor also decides how to...
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A compilation engagement is an audit of the system of internal control, whereby an auditor expresses...
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The management's responsibility section of the standard audit report for a non-public company states that the financial statements are: A the responsibility of management. B. the joint responsibility of management and the auditor c. the responsibility of the auditor. o none of the above.
When creating an audit program and designing audit procedures, _ an auditor also decides how to select appropriate items for removal from the test sample. the auditors should defer sample selection to the internal auditors. an auditor also decides how to select appropriate items for testing. the auditors should consider use of the cheapest statistical selection methods possible, to lower the cost of the audit. Next Question 7 0.5 pts A representative audit sample is unlikely to provide a reasonable...
A compilation engagement is an audit of the system of internal control, whereby an auditor expresses an opinion on the system of internal control when an accounting firm assists management in the presentation of financial statements but does not audit, review, nor provide assurance as to whether the financial statements are presented fairly. when an audit firm assists management in the presentation of financial statements and attempts to provide assurance as to whether the financial statements are presented fairly an...
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