Answered: Explain how the purposes and principles…

Explain how the purposes and principles of internal controls are different between accounting systems reporting under IFRS versus U.S. GAAP.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 31RQSC

See similar textbooks

Related questions

Q: What is an engagement to attest on internal control over financial reporting? (

A: Internal control seems to be a procedure formulated and constructed by those in command of…

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to accounting changes and…

A: IFRS stands for International Financial Reporting Standards IFRS consists of various accounting…

Q: U.S. GAAP accounting different from

A: International Financial reporting standards: IFRS can be defined as set of accounting standards used…

Q: the structure of the International Accounting Standards Committee

A: The lnternational accounting standard committee is an independent organization that work for the…

Q: Globally, accounting standards are developed based on different methods. It is generally agreed that…

A: International Accounting Standards Board (IASB): IASB is the board which frames, develops, approves,…

Q: What is EDGAR? Multiple Choice A system designed by the SEC to allow electronic filings. The…

A: Option B is incorrect because EDGAR is a system devised by SEC for electronic corporate filings…

Q: If the company is subject to PCAOB obligations for communicating control shortcomings (AS 1305),…

A: SOLUTION- COMMUNICATION ABOUT CONTROL SHORTCOMING- STANDARD O AUDITING OF 1305 DESCRIBES THE…

Q: Why is there a need for a change in the structure of the International Accounting Standards…

A: IAS Committee (IASC) was set up in 1973 for bringing harmonization to the accounting process around…

Q: How do differences in accounting controls and enforcement impact accounting reports prepared across…

A: Accounting controls are the procedures which are applied by a company for ensuring validity ,…

Q: Cash presents special internal control challenges. How do internal controls for cash differ for…

A: As international Accounting Standards are issued by International Accounting Standards Committee…

Q: Which of the following arguments is not in favour of entities being required to comply with…

A: Accounting Standards are standard set of rules or practices which must be followed at the time of…

Q: How might differences in presentation of comparative data under GAAP and IFRS affect adoption of…

Q: what are disadvantages of national or international accounting uniformity?

A: National or International accounting uniformity means same accounting standards and accounting…

Q: In very few cases will a company fall under the purview of more than one set of regulations or…

A: Every company has to taxes on its income earned.

Q: of internal financial controls.

A: Internal financial controls are policies and procedures adopted by a company to ensure the orderly…

Q: When developing requirements for IFRS Standards, can the International Accounting Standards Board…

A: SOLUTION- INTERNATIONAL ACCOUNTING STANDARD BOARD- IT IS AN INDEPENDENT , PRIVATE SECTOR BODY THAT…

Q: nting standards of a country with that of IASB is a

A: The Accounting Standard Board (ASB) of the Institute of Chartered Accountants of India (ICAI)…

Q: What is EDGAR?a. A system the SEC uses to reject registration statements that do not contain…

A: EDGAR: EDGAR is a system designed to gather electronic data, analyze and retrieve the data.…

Q: What are some of the problems created by differences in accounting across countries and the reasons…

A: If different countries will adopt different standards of accounting, it will create a panic…

Q: Which private sector that is not under any direct governement control can the SEC accept or reject…

A: Since its inception in 1973, the Financial Accounting Standards Board (FASB) has served as an…

Q: What is serious regulatory lapses in the system as difficulties in the financial system?

A: Financial system is the system where all the players are involved and exchange funds & money…

Q: The purpose of the IFRS Interpretations Committee is to: Consider accounting issues that are likely…

A: IFRS (International financial reporting standards) are the accounting standards which are issued by…

Q: Explain the environmental factors that lead to national differences in accounting.

A: Accounting seems to be the concept of documentation and categorizing commercial transactions and…

Q: How does the SEC affect the development of generally accepted accounting principles in the United…

A: SEC affects development of generally accepted accounting principles in the United States by…

Q: Describe situations in which the auditors’ report on internal control over financial reporting would…

Q: Which of the following statements is correct with respect to the IFRS accounting policy hierarchy in…

A: International Accounting Standards Board (IASB): IASB is the board which frames, develops, approves,…

Q: what are the responsibility of Board members with regards to internal controls?

A: Internal Controls Internal controls refer to the rules, regulations, or processes implemented by a…

Q: Explain the primary functions of internal controls procedures in the accounting area. What is meant…

A: Internal control: The internal control refers to the plan of a company. Implementation of effective…

Q: Choose the correct. Which of the following statements is correct with respect to the IFRS accounting…

A: International Accounting Standards Board (IASB): IASB is the board which frames, develops, approves,…

Q: If the company is subject to PCAOB obligations involving notification of control shortcomings (AS…

A: Thi the company is subject to PCAOB obligations involving notification of control shortcomings (AS…

Q: 4 Which of the following is true about the Sarbanes-Oxley Act?A. It was passed to ensure that…

A: Internal controls are the mechanisms, rules, and procedures that a company implements to ensure the…

Q: Which law or regulation requires that public companies must maintain strong internal control…

A: Under Section 404 of the Sarbanes-Oxley Act, all public companies would be required to establish…

Q: If the entity is subject to PCAOB requirements regarding communication about control deficiencies(AS…

A: Communication about control deficiencies : Standard on Auditing of 1305 describes the communication…

Q: distinguish between audit, attest, and assurance services. What is GAAS? Which agency is responsible…

A: The shareholders or investors or management have a keen interest in the organization mainly the…

Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

Explain how the purposes and principles of internal controls are different between accounting systems
reporting under IFRS versus U.S. GAAP.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Audit procedures for items of Financial Statement

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

what are disadvantages of national or international accounting uniformity?
Do you believe that the current international accounting standard-setting arrangements, based around the IASB, are at risk of regulatory capture? Why or why not?
How do differences in accounting controls and enforcement impact accounting reports prepared across different countries?
What are the challenges and risks associated with implementing control procedures in accounting, and how can they be mitigated?
Explain the primary functions of internal controls procedures in the accounting area. What is meant by separation of duties?
What are some of the differences between International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP)? What are some advantages and disadvantages of adopting IFRS in the US?
Under federal securities laws, the SEC has the authority to set accounting standards in the United States. True /False ?
Does a qualified opinion on management’s assessment of internal controls over the financial reporting system necessitate a qualified opinion on the financial statements? Explain.
What should you tell your friend about the presence of accounting standards in theUnited States? Who has the authority for standard setting? Who has the responsibility?
Explain the primary functions of internal controls procedures in the accounting area
How does the SEC affect the development of generally accepted accounting principles in the United States?
Which of the following is not about harmonization? Select one: a. Harmonization is a process of increasing the compatibility of accounting practices. b. Harmonization simply implies uniformity. A c. Harmonization is tailored towards breaking the barriers of national differences. d. Harmonization is a process of preparing financial statements.