Which of the following factors are not relevant to the judgement involved in management's assessment of the entity's ability to continue as a going concern? O a. The size and complexity of the entity and the nature and condition of its business O b. The degree of uncertainty associated with the outcome of an event or condition O C. The degree of uncertainty associated with the internal control system of the entity O d. Judgment about the future is based on information available at the time at which the judgment is made

Which of the following factors are not relevant to the judgement involved in management's assessment of the entity's ability to continue as a going concern? O a. The size and complexity of the entity and the nature and condition of its business O b. The degree of uncertainty associated with the outcome of an event or condition O C. The degree of uncertainty associated with the internal control system of the entity O d. Judgment about the future is based on information available at the time at which the judgment is made

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 32CYBK

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Similar questions

Which of the following is not considered to be part of the internal control structure of a company? A. Ensure that assets are kept secure. B. Monitor operations of the organization to ensure maximum efficiency. C. Publish accurate financial statements on a regular basis. D. Ensure assets are properly used.
Which of the following statements is incorrect? The practice of management accounting is fairly flexible. The information gathered from management accounting is not required by law. Management accounting focuses mainly on the internal user. Reports produced using management accounting must follow GAAP.
Which of the following does not describe a management control system? A. establishes a companys strategic goals B. implements a companys strategic goals C. monitors a companys strategic goals D. a system that only measures profitability
Which statement indicates a going concern? A. Management has no realistic alternative but to cease the operations of the entity.B. Management intends to liquidate the entity.C. Management intends to cease the operations of the entity.D. Management assumes the continuity of operation in the absence of evidences to the contrary
The following questions deal with assessing controlrisk in a financial statement audit. Choose the best response.a. When obtaining an understanding of an entity’s internal control procedures, anauditor should concentrate on the substance of procedures rather than their formbecause:(1) the procedures may be operating effectively but may not be documented.(2) management may establish appropriate procedures but not enforce compliancewith them.(3) the procedures may be so inappropriate that no reliance is contemplated by theauditor.(4) management may implement procedures whose costs exceeds their benefits
Which of the following is not one of the components of COSO’s framework? A. Objective setting which includes setting the objectives and critical success factors B. Continuously monitoring the ERM process C. Risk Assessment to manage risk related to achieving corporate objectives D. Safeguarding assets to prevent or detect unauthorized acquisition, use or disposition E. Control Activities which include policies and procedures to assure that management’s control objectives are met
Which of the following statements about management assertions, audit objectives, and audit evidence is incorrect? Group of answer choices a. Management assertions are representations of management, whether express or implied, about classes of transactions, account balances, and presentation and disclosure in the financial statements. b. Audit objectives remain the same from audit to audit but audit evidence may vary. c. An auditor may design more than one audit procedures to validate the same assertion. d. Audit procedures designed to evaluate one assertion may not be used anymore to evaluate another assertion.
Which of the following is NOT a requirement in management’s report on the effectiveness of internal controls over financial reporting?a. A statement of management’s responsibility for establishing and maintaining adequate internal control user satisfaction. b. A statement that the organization’s internal auditors have issued an attestation report on management’s assessment of the company’s internal controls. c. A statement identifying the framework management uses to conduct its assessment of internal controls. d. An explicit written conclusion as to the effectiveness of internal control over financial reporting.
Which of the following is least likely to be considered a financial statement audit risk factor? Management operating and financing decisions are dominated by top management, A new client with no prior audit history, Rate of change in the entity's industry is rapid, Profitability of the entity relative to its industry is inconsistent
issues of ethics, regulation and compliance and the extent to which accounting are constraints or threats to the organisation.
Which of the following would assist an entity in cat and prevent fraud? a. Accounting reconciliations b. Segregation of duties c. All the options d. Performance reviews
Which of the following is not used to overcome the agency problem? a. executive compensation b. audited financial statements c. related party transactions d. internal controls