ents: MUHEET Corporationis one of several companies engage
Q: Please decide control risk, inherent risk and planned audit evidence will be affected (increase or…
A: Control risk is the possibility that financial statements would be materially misstated as a result…
Q: You are the partner responsible for quality control in Suta Excellence, A well-known audit firm. You…
A: The issues of internal control in each of the above situations are explained as follows: 1) The…
Q: The internal auditors of Brown Electrical Company report to the controller. Due to changes made in…
A: Internal audit is the one which measure the internal controls involving the accounting procedure and…
Q: In reviewing the process procedures and internal controls of one of your audit clients, Steeplechase…
A: Internal controls means the control related to internal functions of the system and its procedures.
Q: The internal audit department of a manufacturing company conducted a routine examination of the…
A: (a)
Q: You are auditing the financial statements of Austin SoftwareCompany, which is a fast-growing…
A: Audit procedure: Audit procedures are used by auditors to determine the quality of financial…
Q: bolded and underlined list of questions the client has not answered adequately. Select two of the…
A: The two of the indicators are :- 1. Bolded 2. Underlined
Q: You are an audit graduate working for an audit firm. A client has said to you that you seem to be…
A: An auditor is responsible for verifying the accuracy of the financial accounts prepared by the…
Q: The internal audit department of a manufacturing company conducted a routine examination of the…
A:
Q: You are an auditor. The client's organization has recently implemented ERP system and data…
A: The auditors will audit the company based on their knowledge, and experience. There are many audit…
Q: a. Identify the audit approach the auditor could use to gather evidence regarding the effectiveness…
A: Hey there since you have posted multiple questions, we can answer only first three questions, please…
Q: ss activity is the assembly of circuit boards. One of the key materials used is copper wiring, all…
A: Business risk refers to the factors or situations that create a decline in the profits of the…
Q: Explain how risk of material misstatement should he assessed and what effect that assessment will…
A: Audit of financial statements is conducted by an independent auditor by examining the financial…
Q: You are an independent auditor attending an engagement interview with the client. The client’s…
A: Data Warehouse: Data warehouse refers to a database which helps in making business decisions. The…
Q: Which of the following services can be classified as an assurance service? O A. The auditor verifies…
A: Answer: option (A)
Q: Your company, Tractors, Inc., is employing the SDLC for its new information system. You have been…
A: Primary Facts: The primary fact is also known as a raw facts or figure which is directly collected…
Q: 1) You are the partner responsible for quality control in Suta Excellence, A well-known audit firm.…
A: The issues of internal control in each of the above situations are explained as follows: Zhetta…
Q: The auditor has always received cooperation from a particularclient and has no reason to question…
A: Introduction: An auditor verifies the authenticity of commercial transactions that have been…
Q: You are an audit graduate working for an audit firm. A client has said to you that you seem to be…
A: Audit is very important for a business organisation. It describes what type of risk the organisation…
Q: During planning phase of a client’s financial audit, the CPA firm of Arthur Smith, LLP discovered a…
A: The limited number of employees in the enterprise makes the segregation of duties difficult and…
Q: The Balcar Company’s auditors are developing an audit plan to review the company’s systems…
A: Internal Controls: Internal controls are the controls established within an organization to check…
Q: You are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You…
A: After a careful review of the budget for data security enhancement projects, you feel the budget…
Q: Your client Micros Associates is engaged in trading of computers. The client has been audited by…
A: "Since you have posted multiple questions, we will solve the first question for you. To get the…
Q: . Anna Santos audited the information system of Flores Corporation. Upon her evidence collection,…
A: The different techniques of gathering audit evidence are by: Observation Examination Interview
Q: LetGrade SAOG has been audited by the same auditor for over 10 years and the auditor regularly plays…
A: Auditor's independence is the most crucial aspect of the whole auditing process and can be…
Q: The internal auditors of Brown Electrical Company report to the controller. Due to changes made in…
A: Review measures – the justification having the organization's fi nancial proclamations examined by…
Q: A representative of the PMO emailed you to notify you of an internal audit they want to perform on…
A: The Project management office is an office set up in an organization that ensures that the company…
Q: In reviewing the processes, procedures, and internal controls of one of your audit clients, Veronica…
A:
Q: Explain how risk of material misstatement should he assessed and what effect that assessment will…
A: Detection risk refers to the situation when the auditor fails to detect any sort of misstatement or…
Q: Describe weaknesses in internal control over information and data flows and the procedures for…
A: Internal controls are the policies, procedures, systems formed by the management team of the Company…
Q: Your client is a company that produces high-quality palm oil (CPO) and palm kernel products. You…
A: Audit: It is a procedure for examining a company's financial statements. The goal of auditing is…
Q: Marsha Mason, CPA, believes that it is appropriate to obtain an understanding of internal control…
A: Understanding of internal controls is a preliminary step in planning the audit as it will help the…
Q: Marion Watson & Co., CPAs, is planning its audit procedures for its tests of the valuation of…
A: Audit risk=Control risk×Detection Risk×Inherent risk
Q: Anna Santos audited the information system of Flores Corporation. Upon her evidence collection, she…
A: Auditing: Auditing refers to an independent examination of financial information of any…
Q: Do you perceive an ethical dilemma? What would be the likely impact of following the controller’s…
A: The perception of ethical dilemma and the likely impact of following the controller's suggestions…
Q: One of your Firm’s Managers, Colin Cronen is responsible for the auditing the financial statements…
A: Based on review of notes, describe weaknesses in internal control over information and data flows…
Q: You have accepted the engagement of auditing the financial statements of the C. Reis Company, a…
A: Introduction: Auditing: The process of independent examination of the financial information of the…
Q: Jerry has been assigned to the audit of Strongbow LLC, a large, decentralized provider of soft…
A: Performing audit procedures on the physical count of inventory is a significant factor to be focused…
Q: You are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You…
A: Audit:- An audit is considered as the physical examination of books of accounts of a company by an…
Q: You are required to: Describe the quality control issues arising from each of the findings.
A: Quality control: Quality control refers to the control that is broadly defined as a process by the…
Q: Consider the following independent situations, all of which apply to audits of entities for the year…
A: Auditing: Auditing is an independent examination of financial statements. The set of financial…
Q: ns. During this year's annual financial audit, the external auditors noticed unusually large gaps in…
A: An embedded audit module (EAM), also known as continuous auditing, detects transactions that exceed…
Q: The auditors for Golden Gate Company have a gut feeling that liabilities may be unrecorded. Their…
A:
Q: Independent Auditors’ Report Your client is a company that produces high quality palm oil (CPO) and…
A: The answer is provided as follows:
Q: The internal auditors of Tantacle Electrical Company report to the controller. Because of changes…
A: External Auditor: An external auditor is appointed by the organization to organize and examine the…
Q: The CARE Corporation uses an IBM mainframe computer system with peripheral optical reader and…
A: Here in this scenario the process of basic accounting work and the financial statement completely…
Q: Which of the following conditions most likely would pose the greatest risk in accepting a new audit…
A: Audit means checking and verifying the authenticity of financial statements and books of accounts.…
Q: You are a CPA and you are the CFO (Chief Financial Officer) of USB Computer Technologies Inc., a…
A: Auditing and assurance are very important for the corporation because users of the financial…
You are an auditor working with JUMAN audit firm. JUMAN audit firm accepted two engagements to audit the financial statements of MUNER company and MUHEET company. Explain how risk of material misstatement should he assessed and what effect that assessment will have on detection risk for the following audit clients:
MUHEET Corporationis one of several companies engaged in the manufacture of high- speed, high- capacity data storage devices. The industry is very competitive and subject to quick changes in technology. MUHEET’s operating results would place the company in the second quartile in terms of profitability and financial position. The company has never been the leader in the industry, with its products typically slightly behind the industry leaders in terms of performance.
Step by step
Solved in 2 steps
- Explain how risk of material misstatement should he assessed and what effect that assessment will have on detection risk for the following audit client:Kistra Corporationis one of several companies engaged in the manufacture of high- speed, high- capacity data storage devices. The industry is very competitive and subject to quick changes in technology. Kistra’s operating results would place the company in the second quartile in terms of profitability and financial position. The company has never been the leader in the industry, with its products typically slightly behind the industry leaders in terms of performance.Explain how risk of material misstatement should he assessed and what effect that assessment will have on detection risk for the following audit client:xyz Corporationis one of several companies engaged in the manufacture of high- speed, high- capacity data storage devices. The industry is very competitive and subject to quick changes in technology. MUHEET’s operating results would place the company in the second quartile in terms of profitability and financial position. The company has never been the leader in the industry, with its products typically slightly behind the industry leaders in terms of performance.An IT auditor is performing a test of the company's user access administration process, and has selected a random sample of 25 user access requests to evaluate. The IT audit test procedures revealed that 1 of the 25 sampled user access requests has not been properly authorized according to company policy. As a key next step in the IT audit process, the IT auditor should (select the BEST response): a) Communicate this concern to the Chief Executive Officer as soon as possible. b) Communicate this concern to the Audit Committee as soon as possible. c) Disregard the finding entirely. d) Perform additional audit procedures to better understand the risks related to the issue, as well as the root cause of the problem.
- You are an audit manager at Hall & Associates, who have been approached to conduct the audit of Computer Games Ltd (CGL), a manufacturer of interactive computer games, for the year ended 30 June 2013.Hall & Associates has not previously audited CGL’s financial report, although it has undertaken other types of engagements for CGL. Last year CGL hired Hall & Associates to assist in the redesign ofCGL’s accounting software to ensure that internal controls over internet sales were adequate to ensure the confidentiality of customer data and accuracy of recording. The new software was implemented at the beginning of the current year and appears to be working satisfactorily. As part of this year’s audit,youexpectto reviewtheinternalcontrolsatCGL,includingthecontrolswithintheITsystems.As part of CGL’s financing arrangements with its bank, Easymoney Ltd, it has a loan covenant that stipulates that the quick asset ratio cannot be less than 1:1 or Easymoney Ltd has the right to…You are an audit manager at Hall & Associates, who have been approached to conduct the audit of Computer Games Ltd (CGL), a manufacturer of interactive computer games, for the year ended 30 June 2013.Hall & Associates has not previously audited CGL’s financial report, although it has undertaken other types of engagements for CGL. Last year CGL hired Hall & Associates to assist in the redesign of CGL’s accounting software to ensure that internal controls over internet sales were adequate to ensure the confidentiality of customer data and accuracy of recording. The new software was implemented at the beginning of the current year and appears to be working satisfactorily. As part of this year’s audit, you expect to review the internal controls at CGL, including the controls within the IT systems.As part of CGL’s financing arrangements with its bank, Easymoney Ltd, it has a loan covenant that stipulates that the quick asset ratio cannot be less than 1:1 or Easymoney Ltd has the…You are an audit manager at Hall & Associates, who have been approached to conduct the audit of Computer Games Ltd (CGL), a manufacturer of interactive computer games, for the year ended 30 June 2013.Hall & Associates has not previously audited CGL’s financial report, although it has undertaken other types of engagements for CGL. Last year CGL hired Hall & Associates to assist in the redesign of CGL’s accounting software to ensure that internal controls over internet sales were adequate to ensure the confidentiality of customer data and accuracy of recording. The new software was implemented at the beginning of the current year and appears to be working satisfactorily. As part of this year’s audit, you expect to review the internal controls at CGL, including the controls within the IT systems.As part of CGL’s financing arrangements with its bank, Easymoney Ltd, it has a loan covenant that stipulates that the quick asset ratio cannot be less than 1:1 or Easymoney Ltd has the…
- You are an audit manager at Hall & Associates, who have been approached to conduct the audit of Computer Games Ltd (CGL), a manufacturer of interactive computer games, for the year ended 30 June 2013. Hall & Associates has not previously audited CGL’s financial report, although it has undertaken other types of engagements for CGL. Last year CGL hired Hall & Associates to assist in the redesign of CGL’s accounting software to ensure that internal controls over internet sales were adequate to ensure the confidentiality of customer data and accuracy of recording. The new software was implemented at the beginning of the current year and appears to be working satisfactorily. As part of this year’s audit, you expect to review the internal controls at CGL, including the controls within the IT systems. As part of CGL’s financing arrangements with its bank, Easymoney Ltd, it has a loan covenant that stipulates that the quick asset ratio cannot be less than 1:1 or Easymoney Ltd has…You are an audit manager at Hall & Associates, who have been approached toconduct the audit of Computer Games Ltd (CGL), a manufacturer of interactivecomputer games, for the year ended 30 June 2019.Hall & Associates has not previously audited CGL’s financial report, although ithas undertaken other types of engagements for CGL. Last year CGL hired Hall& Associates to assist in the redesign of CGL’s accounting software to ensurethat internal controls over internet sales were adequate to ensure theconfidentiality of customer data and accuracy of recording. The new softwarewas implemented at the beginning of the current year and appears to beworking satisfactorily. As part of this year’s audit, you expect to review theinternal controls at CGL, including the controls within the IT systems.As part of CGL’s financing arrangements with its bank, Easymoney Ltd, it hasa loan covenant that stipulates that the quick asset ratio cannot be less than1:1 or Easymoney Ltd has the right to…You are an audit manager at Hall & Associates, who have been approached to conduct the audit of Computer Games Ltd (CGL), a manufacturer of interactive computer games, for the year ended 30 June 2019. Hall & Associates has not previously audited CGL’s financial report, although it has undertaken other types of engagements for CGL. Last year CGL hired Hall & Associates to assist in the redesign of CGL’s accounting software to ensure that internal controls over internet sales were adequate to ensure the confidentiality of customer data and accuracy of recording. The new software was implemented at the beginning of the current year and appears to be working satisfactorily. As part of this year’s audit, you expect to review the internal controls at CGL, including the controls within the IT systems. As part of CGL’s financing arrangements with its bank, Easymoney Ltd, it has a loan covenant that stipulates that the quick asset ratio cannot be less than 1:1 or Easymoney Ltd has…
- The internal auditors of Tantacle Electrical Company report to the controller. Because ofchanges made in the past year to several of the transaction processing programs, the internalauditors created a new test data set. The external auditors requested that the old date set alsobe run. The internal auditors, embarrassed, explained that they overwrote the original testdata set.Required:Outline any potential risks and determine the courses of action the external auditor shouldtake.The internal auditors of Brown Electrical Company report to the controller. Because of changes made in the past year to several of the transaction processing programs, the internal auditors created a new test data set. The external auditors requested that the old data set also be run. The internal auditors, embarrassed, explained that they overwrote the original test data set. Required: Outline any potential risks, and determine the courses of action the external auditor should take.Respond to each of the following comments that you heard related to the audit of Swan Company, a public entity.a. “We don’t need to consider the risk of material misstatement in our work because we really can’t do anything to reduce that risk.”b. “Because the client has not implemented effective internal controls, we need to gather more reliable evidence. This means we need to test a greater number of transactions and obtain more reliable forms of evidence.”c. “We will really need to spend a lot of time and effort on this audit. Because this client has just filed for a bond offering, we can’t allow for any misstatements in the financial statements. We need to guarantee the accuracy of the client’s financial statements.”d. “Because this company has $140 million in revenues, we really shouldn’t be concerned about smaller accounts because they are not likely to have a major impact on the financial statements.”e. “I know it will be more time consuming and expensive, but we are required to…
