Explain what lapping means, and discuss the internal control deficiency that allows it to occur. Also discuss the procedures the auditor can perform to detect lapping

Q: Distinguish between errors and irregularities. Which do you think concern auditors the most?

A:

Q: Which of the following is not a typical problem found by auditors when cleansing client data for the…

A: Option D

Q: Delineate the protections that may be used to limit or eliminate risks to the independence of the…

A: When the internal and external auditors' work is not influenced by any party that has an interest in…

Q: Explain what lapping means, and discuss the internal control deficiency that allows it discuss the…

A: Lapping: It is a type of cash embezzlement or fraud perpetrated by a firm employee. When cash is…

Q: In the consideration of internal control, the operating effectiveness of controls is tested by:…

A: internal controls -    internal controls are the policies and procedures laid down by the management…

Q: n audit procedure designed to evaluate the operating effectiveness of controls in preventing or…

A:

Q: If the auditor is unable to rely on the IT general controls or application controls of a client,…

A: Correct option is D. Control risk as high   If the auditor is unable to rely on the IT general…

Q: True or false Tests of controls generally consist of combination of procedures such as inquiry of…

A: Auditing is the procedure in which the auditor checks and examines the financial statements of the…

Q: Substantive analytical procedures are performed by auditor: To identify and assess detection risk To…

A: Auditor is the person who is responsible for performing audit work. Audit means checking and…

Q: Compare the designs of your choice of two internal controls. Determine which is the preferred design…

A: Preventive control is the most important control out of the other internal controls because it…

Q: Why are weaknesses (lack of desired control procedures) not tested for compliance? Describe how…

A: Test for Compliance Procedures are merely tests that are designed to obtain reasonable assurance…

Q: Many auditors assert that certain audit tests can be significantlyreduced for clients with adequate…

A: Auditing:   In auditing, auditors verify the correctness and fair presentation of financial…

Q: Which of the following terms best describes the risk that audit procedures will fail to detect…

A: The Correct Option is C

Q: Discuss how the process of obtaining IT audit evidence is inherently different than it is in a…

A:

Q: If the tests of controls indicate certain controls are not as effective as the auditor originally…

A: Test of controls are performed  to determine the effectiveness of the control to detect and correct…

Q: For the given scenario, identify the weakness or weaknesses in internal control and opposite the…

A: Internal control is a process, performed by a board of directors of business, management and other…

Q: (A) The requirement is to find the best statement concerning an auditor’s assessment of…

A: Control risk alludes to the probability that a large misrepresentation originating from a caused by…

Q: he purpose of ____________ is to help manage and control risk appropriately rather than to eliminate…

A: Answer

Q: 9 Explain how the effectiveness of general control affects the auditor's test of automated…

A:

Q: Determine the assessed levels of detection risk and inherent risk

A: Audit is defined as an investigation of some statements of figure involving examination of certain…

Q: Give some instances of the dangers to the independence of an external auditor in your explanation.

A: This question deals with the dangers to the independence of an external auditor in your explanation:…

Q: Determine whether each procedure described below is an internal control strength or weakness; then…

A: Weakness or strength along with IC Principle :- 1 Weakness - Apply technological controls 2 Weakness…

Q: The risk that material errors will not be detected is directly controllable by the auditor through…

A: Auditor: An auditor is a person or a group of people who is responsible for conducting an audit of…

Q: What is lapping? What procedures can auditors employ to detect lapping?

A: Lapping: It refers to a type of accounting fraud that involves the hiding of misappropriated or…

Q: Identify situations in which auditors addexplanatory language to an unmodifiedopinion.

A: Unmodified opinion is where an auditor expresses an opinion that financial statements are presented,…

Q: Auditing standards indicate that if the preliminary control risk assessment is low, the auditor then…

A: The selection of control by the auditor is based on assessing whether the entity's controls…

Q: Once the auditor detects a control deficiency, which of the following steps must he or shetake…

A: Internal control is the process of achieving objectives in operational efficiency and effectiveness.…

Q: In an environment that is highly automated, an auditor determines that it is not possible toreduce…

A:

Q: Generally, which of the following audit procedures is the least expensive to perform?   A.…

A: Answer -  Correct Option is Option A - Analytical procedures.

Q: Which of the following describes the circumstances that exist when an auditor assesses control risk…

A: Solution Concept Control risk means the risk that the internal controls that are required to prevent…

Q: It's important to explain what lapping is and how an auditor may find it. When should the auditor…

A: This question explains about what lapping is and how an auditor may find it.

Q: The client’s computerized exception reporting system helps audit teams conduct a moreefficient audit…

A: Answer: b. Highlights abnormal conditions.

Q: an introduction about the effect of artificial inteligence on audit

A: The on-site verification activity of a process or quality system, such as inspection or examination,…

Q: What is lapping?  How can it be detected by an auditor and how can it be prevented?

A: Lapping is an accounting fraud where cash stolen or cash misappropriation is concealed by altering…

Q: internal audit function acts as a higher level of control to determine that the internal control…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: If detective controls signal error flags, why shouldn’t this type of controls automatically make a…

A: Definition:   Internal control: Internal control involves the norms and rules which are followed…

Q: The likelihood that material misstatements may have entered the accounting system and notbeen…

A:

Q: When an audior increases the assessed level of control risk because certain control activities were…

A: Answer:   Option C.

Q: When a substantive audit strategy is adopted, an auditor will O determine internal controls are…

A: The question is related to Auditing and is of Substantive audit Strategy. Substantive audit Strategy…

Q: For each of the above deficiencies, identify the possible impact on the company’s operation and…

A: Internal control is a system of organizing the company in which a set of rules, policies, and…

Q: Obtaining an understanding of the internal control structure is required for first time audit…

A: Internal control is an efficient system of control is established by the management in the conduct…

Q: When searching for the root cause of issues, auditors are effectively searching for the source of…

A: Whenever auditor or management finds out that there are issues in the company. They try to find out…

Q: Generally, which of the following audit procedures is the least expensive to perform?   A.…

A: Analytical procedures are the least expensive audit procedures to perform. Test of controls are…

Q: In a non public audit (AICPA), auditors might chose to not test controls if Select an answer and…

A: As part of audit, it is based on the auditors judgement only to select the appropriate level of risk…

Q: What is check kiting? How might auditors detect kiting?

A: Auditing refers to the process of scrutinizing the financial statement of the business entity and…