You are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You visited the corporate headquarters to become acquainted with key personnel and to conduct a preliminary review of the company’s accounting policies, controls, and systems. During this visit, (e) You were told that the performance of division and department managers is evaluated on a subjective basis, because top management believes that formal performance evaluation procedures are counterproductive.  Identify the problems and explain them in relation to the internal environment.

Q: Auditors are important because they are able to provide assurance of an organization's financial…

A: Answer: Threats to independence occurs when there is audit in any company. There are various types…

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: The 12 partners of a regional public accounting firm met in special session to discuss audit…

A: Answer: According to J, the standard of policy of conducting reviews and tests of internal control…

Q: Auditors are important because they are able to provide assurance of an organization's financial…

A: Familiarity threat may occur when, because of a close relationship, a professional accountant…

Q: The internal control system provides reasonable assurance that the company’s objectives are being…

A: Internal control:   Internal control can be defined as a process to ensure achievement of the…

Q: Is independence impaired when an auditor is hired, paid, and fired by the same corporate managers…

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

Q: Which of the following control objectives in the General Ledger activities under the…

A: R2R is a Finance and Accounting (F&A) management process that entails gathering, analysing, and…

Q: n the beginning of this unit, we discussed different aspects of internal audit. Our discussion…

A: Internal Control System Internal control system which are prevailed in the organization make ensure…

Q: Comment on the effectiveness of this structure.

A: The role of internal audit is to provide independent assurance that an organisation's risk…

Q: Auditors are important because they are able to provide assurance of an organization's financial…

A: Answer: There is threat to auditor independence. These are of various kinds: self interest threat…

Q: The following are selected portions of the report ofmanagement from a published annual report.REPORT…

A: a.

Q: For each of the following procedures taken from the quality control manual of a CPA firm, identify…

A: The objectives of a system of quality control are to provide a CPA firm with reasonable assurance…

Q: If you were Sarah, how would you respond to each question?  For each of the following procedures…

A: The many aspects of quality control are intertwined. Maintaining Integrity, Impartiality, and, where…

Q: Auditors are important because they are able to provide assurance of an organization's financial…

A: Self-review threats:- This threat may occur when a previous judgment needs to be re-evaluated by the…

Q: Discuss the numerous choices for putting an internal audit function inside a company and the merits…

A: For a financial year, an auditor will conduct an audit of its financial records to verify that they…

Q: Which of the following would be considered the most significant problem for internal auditif the…

A: The most significant problem for internal auditif the chief audit executive reports to the…

Q: The internal audit activity most directly contributes to an organization’s governance process by A.…

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

Q: The last decade has seen increased attention paid to internal audit as an integral component of…

A: What is an audit committee? In order to assist the board of directors in performing their duties…

Q: Identify from the following the department who are responsible to appoint internal auditors and…

A: Internal audit is one of the pivotal pillars of the internal control mechanism of the organisation

Q: As the Director of Audit of a multinational company, what role will you play in ensuring that good…

A: It is true that the corporate governance principles are universal for every organization but every…

Q: Organizations often rely on their in-house audit department to ensure that their internal controls…

A: The internal audit ensures that an organization's risk management, governance, and internal control…

Q: he last decade has seen increased attention paid to internal audit as an integral component of…

A: Internal Audit: This is a technique to measure the company's internal control process, corporate…

Q: E1B. Match the items with the related statements that follow. a. Control environment b. Risk…

A: Component Description a. control environment 6. Personnel are well trained and instructed in…

Q: Understand the role of a system of quality control and monitoring efforts in enabling public…

A: A system of quality control means that every professional is following every quality professional…

Q: To what extent do auditors contribute to the smooth functioning of a company? Using appropriate…

A: Auditing: Cross-checking financial records with physical inventory and other data is called…

Q: Comment on the effectiveness of this organizational structur

A: Internal Audit: Internal audit is the process by which organization assures the compliance of rules…

Q: In this section, we will discuss the numerous alternatives for putting an internal audit function…

A: The following are the many alternatives for efficiently placing an internal audit function within a…

Q: According to the Institute of Internal Auditors (IIA), Internal Auditors should play a key role in…

A: The IIA in their paper specified internal audit’s role in relation with ERM. Roles to be performed…

Q: Auditors are important because they are able to provide assurance of an organization's financial…

A: Intimidation threat may occur when a chartered accountant may be deterred from action objectively by…

Q: Cue Manufacturing Ltd is setting up its internal control system. As part of this process, the CEO…

A: For prevention of fraud, theft, and manipulation of records, control over the internal procedure…

Q: Identify the following as True or False:A. Managerial accounting reports must comply with the rules…

A: Managerial accounting is concerned with a company's inner financial operations, whereas financial…

Q: Auditor conducts observation process as a part of evaluation of internal control a. To understand…

A: The management of the company is responsible to check the internal controls and then making…

Q: is a continuous process in organizations and most of the full time employees are conducting this. a.…

A: Auditing means the independent checking of company operation by outsider.

Q: Imagine that you are the new department manager of a corporation within your chosen field: you…

A: Audit: Auditing is the systematic verification of the books of accounts and the voucher documents to…

Q: Which choice is the best example of an independent auditor? A. CPA who has a significant…

A: Independent auditor are certified public or Chartered Accountants who examine the financial…

Q: Which of the following best describes the operational audit?(1) It requires constant review by…

A: Auditing is a systematic process of analyzing, verifying and quantifying the any given information.…

Q: The role of internal audit is to provide independent assurance that an organisation's risk…

A: Internal auditors occupy a distinct role inside the organisation. He or she is hired by management…

Q: The 12 partners of a regional public accounting firm met in special session to discuss audit…

A: Given: The discussion about audit engagement efficiency by the regional public accounting firm in a…

Q: Auditors are important because they are able to provide assurance of an organization's financial…

A: Familiarity threat is the threat that due to a long or close relationship with a client or employer,…

Q: he role of internal audit is to provide independent assurance that an organisation's risk…

A: Audit refers examination of company financial statements or books and it helps in detecting the…

Q: Bes Corporation has an internal audit department operating out of the corporate headquarters.…

A: Internal audit is a department or group of persons within a firm responsible with conducting…

Q: Veronica is the information systems (IS) auditor of Puno Corporation. In the execution of the audit,…

A: Veronica who is the auditor in this case can gather evidence by examining records or can conduct…

Q: Which threat may occur when a professional accountant may be deterred from acting objectively by…

A: Intimidation threat may occur when a professional accountant may be deterred from acting objectively…

Q: Organizations often rely on their in-house audit department to ensure that their internal controls…

A: Introduction: Auditing an organization's risk management, governance and internal control processes…

Q: An organization’s board of directors has recently experienced a substantial change in leadership.…

A: Audit means reviewing or cross examining the financial transactions in the books to ensure that…

Q: Which of the following accurately describes a characteristic of a management letter? Select all that…

A: Management letter or letter of weakness is the letter issued to management or those charged with…

Q: Which threat may occur when, because of a close relationship, a professional accountant becomes too…

A: Familiarity threats, which may occur when, because of a close relationship, a professional…