Which of the following statements is correct concerning the understanding of internal control needed by auditors? The auditors must understand the information system, not the accounting system, The auditors must understand monitoring and all preliminary accounting controls, The auditors must have a sufficient understanding to access the risks of material misstatement, The auditors must understand the control environment, risk assessment, and all control activities

Q: In determining the operating effectiveness of the internal control policy or procedure, the auditor…

A: The internal controls refer to the mechanism implemented in the organization to ensure that the…

Q: With whom should the auditor communicate whenever he or she determines that fraud may be present,…

A: Auditor is the person examining the financial statements and reports of an entity to check if the…

Q: Which of the following best describes the operational audit? Select one: a. It requires the constant…

A: Operational audit is the examination and verification of all the operations of the business…

Q: subcontracted by the client, specifically in what corresponds to criteria of security, availability,…

A: A  SOC for Service Organizations reports are designed to help service organizations that provide…

Q: Which of the following statements is characteristic of monitoring activities within the internal…

A: Internal controls system includes a set of rules, policies, and procedures an organization…

Q: What does it mean the audit documentation should be self-explanatory? O a. It shall be sufficient to…

A: An audit is a process of checking and verifying the books of account and financial information of…

Q: A conceptually logical approach to the​ auditor's evaluation of internal control consists of the…

A: Please see Step 2 for required information.

Q: Which of the following statements best describes auditors’ responsibility for detecting a client’s…

A:

Q: Which of the following is least likely to be used as evidence by an external auditor?a. Substantive…

A: Auditor is the person who is responsible for the identify the error and fraud presented in the…

Q: The Performance Principle in AICPA auditing standards requires the auditor to obtain a sufficient…

A: An auditor is a person who checks the financial statements of the company. An auditor checks the…

Q: i) Which of the following statements correctly explains the responsibility of the external auditor?…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Prior to SOX, external auditors were required to be familiar with the client organization’s internal…

A: Sarbanes-Oxley Act: The Sarbanes-Oxley Act (SOX) is introduced for protecting the investors from the…

Q: auditor obtains sufficient understanding of the internal control structure

A: Auditing is done to verify whether the underlying financial statements show true and fair view of…

Q: The auditor only obtains understanding of internal control related to significant risks identified…

A: Internal control process is related with effective and efficient use of available resources and it…

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: Explain why managers who outsource their IT function may or may not also outsource responsibility…

A:

Q: Auditors have two strategies to choose from, the lower-assessed control risk strategy and the…

A: Incorrect (c)Auditors can always choose to use the predominantly substantive strategy regardless of…

Q: This is a process of evaluating the effectiveness of a client's internal controls in preventing or…

A: INTERNAL CONTROL IS A MECHANISM WHICH IS IMPLEMENTED TO ENSURE THE INTEGRITY OF FINANCIAL AND…

Q: What form of internal control documentation will an auditor likely use when they are not personally…

A: An Auditor is the person qualified as a Chartered Accountant who takes care of Audit.

Q: EXPLAIN.Which of the following is not done by an auditor when obtaining an understanding of an…

A: Internal controls are the mechanisms and standards that businesses use to protect their sensitive…

Q: Which among the following is not a principle relating to control activities? a. Management designs…

A: Internal control procedures are those procedures which are implemented for the fulfilment of…

Q: Internal audit aims to conduct systematic scrutiny of records. Internal audit is described as…

A:

Q: When planning the audit of internal controls for an issuer, the audit team shoulda. Identify…

A: Internal control is a mechanism or procedure that the company implements so that the integrity of…

Q: In the integrated audit of an issuer, which of the following would not be considered an entity-level…

A: Internal control is the managements’ effective and efficient controls for achieving goals and…

Q: If an auditor does not intend to rely on internal controls in the audit, does the auditor need to…

A: Audit is the process of checking and verifying the authenticity of the financial statements of the…

Q: nternal control should be designed to provide reasonable assurance that       a. Management’s…

A: Auditing refers to the procedure of evaluating and analyzing the books of accounts prepared and…

Q: To obtain an understanding of the relevant policies and procedures of internal control, the auditor…

A: INTERNAL CONTROLS ARE THE RISK MITIGATION STEPS TAKEN TO STRENGTHEN THE ORGANIZATION'S SYSTEMS AND…

Q: When considering the effectiveness of internal control, the auditor should recognize that inherent…

A: SOLUTION- AN INHERENT LIMITATION OF ANY CLIENT'S INTERNAL CONTROL IS THAT CONTROLS CAN BE…

Q: Statement 1: As part of obtaining an understanding of internal control, an auditor is required to…

A: Internal control: In order to gain a thorough understanding of the controls that are relevant to…

Q: s it necessary for an auditor to understand the client's internal control if the auditor does not…

A: Answer: Concept: Audit is independent check of any entity to derive the conclusion which are true…

Q: Auditors are always required to gain a minimum understanding of internal controls, whether or not…

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

Q: Review of internal control system is very important for the auditor as the effectives of internal…

A: Review of Internal Control is done by the auditor to check the extent of effectiveness of these…

Q: re internal controls required even if an auditor doesn't plan to rely on them in his audit? Explain.

A: Auditor: He is a person appointed by the government who investigates the finances of a company. In…

Q: y be more successful in its monitoring and assessment of internal controls by internal auditors.

A: Internal controls are policies  processes used by management to guarantee that  financial statements…

Q: inappropriate during the risk assessment procedure of the audit engagement?

A: First option is wrong because the oral inquiries will help the auditor to procure information…

Q: a) The primary responsibility for the prevention and detection of fraud rests with both those…

A: 1) Yes, I completely agree because it is the management and the government entity that are…

Q: The audit program is a list of procedures used to gather sufficient and appropriate audit evidence.…

A: Audit program:-   It is detailed plan of auditing work. It specify list of procedures used to gather…

Q: Is an organization’s internal audit function part of its system of internal controls? If your answer…

A: Internal Audit Internal audit refers to the department set inside a business that monitors the…

Q: An auditor assesses control risk because it: A. is relevant to the auditor's understanding of the…

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

Q: Under what circumstances are external auditors likely to beinvolved in operational auditing? Give…

A: Operational Audit: An operational audit refers to the review of any aspect of the operating…

Q: Aside from documenting his/her understanding of the internal control structure, the auditor should…

A: The auditor should  document  in his working papers The understanding  of entity  accounting  and…

Q: Study and Evaluation of Management Control. The study and evaluation of management risk mitigation…

A: Management Control:   The process of comparing the performance of the present year with the planned…

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: What are the basic audit procedures usually used by external auditors?

A: Note -Since you have posted multiple questions, we are providing the solution for the first…

Q: Which of the following would generally not be used ? Select one : O a. Re -perform client procedures

A: Internal control procedures means control procedures that are used for safeguarding of assets of the…

Q: Why is there a need on the part of the client entity to monitor internal controls over time? a.…

A: Internal Control- It is a process which is made by the entity to put control on its operations and…

Q: (1) indicate whether you believe the scenario reflects negatively on management integrity, and…

A: Management Integrity is the inbuilt quality of the managers to follow the code of ethics defined for…