What is check kiting? How might auditors detect kiting?

Q: How can Embedded Audit Modules in software be utilized in an audit?

A: Audit: Audit is the process of verification of the compliance of the financial statements.

Q: When reviewing a current audit file, what should you look for?

A: A financial audit is a review of financial accounts to ensure they are accurate.

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

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Q: What are the major steps in the audit team’s assessment of control risk in an IT environment?

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: How do you figure out the balance of control and substantive testing? How does this link into…

A: Substantive testing can be defined as the process of auditing financial statements and obtaining…

Q: How is Parallel Simulation utilized during an audit?

A: Auditing:   It is the systematic verification of the books of accounts of an organisation by an…

Q: If performance materiality increases, what impact would it have on the amount of evidence required…

A: Auditing is an important activity undertaken by almost every organization. It helps increase the…

Q: What is the relationship between Internal Control and Substantive Testing?

A: Internal controls:                            It is a set of rules, policies and procedures adopted…

Q: What are the components of the risk of material misstatement (RMM)? What are the components of the…

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Q: How does Real Time Processing affect an audit?

A: Real-time data processing is the program for running multiple rows and columns of data during a…

Q: Why would an auditor use observation to gather evidence? What are the strengths and weaknesses of…

A: solution : Why would an auditor use observation to gather evidence? What are the strengths and…

Q: What are some advantages of using IT and audit software when conducting an audit?

A: The audit can be defined as the independent examination of internal control, accounting records, and…

Q: How can auditors ensure they are receiving authentic documentation, not forgeries?

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Q: What is directional testing? How does directional testing relateto the appropriateness of audit…

A: Auditing means the process in which the books of the company are audited by a person. The person…

Q: What is the purpose of testing Internal Controls?

A: Definition:   Tests of controls: Tests of controls form the part of audit procedures to be…

Q: How must an auditor document understanding of Internal Control?

A: Definition:   Internal control: Internal control is a process which ensures continuous reliability…

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: What is the connection between audit sampling and audit data mining?

A: Audit sampling is the method in which audit procedure are performed on less than 100% data. In…

Q: Defining what lapping is and how it might be discovered by an auditor is the first step. The auditor…

A: Lapping is a fraudster activity in which one persons money is recorded as payment received from…

Q: When can an audit of IT be performed without directly interacting with the system?

A: Auditing:   It is a systematic verification of the books of accounts of an organisation by an…

Q: Audit tests and fraud?

A: For any company auditor is appointed to give an opinion on the financial statements, whether they…

Q: What does an auditor's assessment of Detection Risk determine?

A: Detection risk is a component of audit risk. Detection risk is the possibility that a material…

Q: What is Audit Sampling?

A: Audit sampling is the use of an audit procedure which says that selection of some sample items from…

Q: What information would you expect to find in a current audit file?

A: Audit: Audit is the process of verification of the compliance of the financial statements.

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: What tests may be conducted for identifying unauthorized program changes?

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

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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 are the objectives in doing a fraud audit? Explain.

A: Fraud audit is a detailed examination into the financial records of the business with the intent of…

Q: What is the benefit of Generalized Audit Software in an audit?

A: Definition:   Generalized audit software (GAS): The software which assists an auditor to perform…

Q: What is the importance of knowing the Transaction Cycles in Auditing?

A: Audit is a process in which auditors has to find out whether the financial statements are present…

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: How are the sufficiency and appropriateness of evidence related to detection risk?

A: Audit Evidence:   The pieces of evidence provided by the audit team to prove their opinion with…

Q: What are the components of Audit Risk? Use the Audit risk equation and briefly explain the…

A: Audit risk means the risk that the auditor gives an inappropriate audit opinion  when the financial…

Q: What is the difference between document examination and reperformance when conducting tests of…

A: Test of controls are performed to obtain evidence about whether controls that are candidates to be…

Q: Explain what is the scope of the fraud audit?

A: Audit is the examination or inspection of books of accounts by an auditor followed by physical…

Q: How do you assess the risk of material misstatement associated with the audit of inventories?

A: Answer: When auditor performs the audit procedures, there is always the risk of misstatement and…