Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 12, Problem 33DQP
(a).
To determine
Determine if the auditor is performing an audit of internal control which is integrated with audit of financial statement, then does AU-C265 apply.
(b).
To determine
Determine who should be communicated about the weakness and significant deficiencies by the auditor and when and how this should be communicated
(c).
To determine
Determine who should be communicated about the other deficiencies and how they should be communicated.
(d).
To determine
Determine if no material weakness or no significant deficiencies are identified, can it be communicated by the auditor.
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1.) The Information Systems Audit and Control Association (ISACA) developed guidelines and procedures on how to follow the standards that apply specifically to the specialized nature of the IS Audit. The guidelines serve as guidance the IS auditor should normally follow. However, there may be situations where the auditor will not follow that guidance. In this case, what happens now to the work done by the IS auditor?
2.) Audits are conducted for various reasons. It can help an organization ensure effective operations, affirm its compliance with various regulations, and confirm that the business is functioning well and is prepared to meet potential challenges. There are three typical phases in an Audit, explain each phase and its relation to the other.
3.) Every organization has controls in place. Such controls must be effective. They are effective if they prevent, detect, or contain incidents and enable recovery from events that cause risks. Enumerate those three types of control…
1.) The Information Systems Audit and Control Association (ISACA) developed guidelines and procedures on how to follow the standards that apply specifically to the specialized nature of the IS Audit. The guidelines serve as guidance the IS auditor should normally follow. However, there may be situations where the auditor will not follow that guidance. In this case, what happens now to the work done by the IS auditor?
2.) Audits are conducted for various reasons. It can help an organization ensure effective operations, affirm its compliance with various regulations, and confirm that the business is functioning well and is prepared to meet potential challenges. There are three typical phases in an Audit, explain each phase and its relation to the other.
AICPA Independence and Other Services. The Independence Rule of the AICPA Code of Conduct cites several “other services” that do and do not impair audit independence.Required:Go to the AICPA website (www.aicpa.org) and find whether the following items impair independence (Yes) or do not impair independence (No) when performed for audit clients.a. Post the client-approved entries to a client’s trial balance.b. Authorize the client’s customer credit applications.c. Use CPA’s information-processing facilities to prepare the client’s payroll and generate checks for the client treasurer’s signature.d. Sign the client’s quarterly federal payroll tax return.e. Advise client management about the application or financial effect of provisions in an employee benefit plan contract.f. Have emergency signature authority to cosign cash disbursement checks in connection with a client’s hospital benefit plan.
g. As an investment advisory service, provide analyses of a client’s investments in comparison…
Chapter 12 Solutions
Auditing And Assurance Services
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Describe how the nature of evidence used to...Ch. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - Prob. 16.1MCQCh. 12 - Prob. 16.2MCQCh. 12 - Prob. 16.3MCQCh. 12 - Prob. 17.1MCQCh. 12 - Prob. 17.2MCQCh. 12 - Prob. 17.3MCQCh. 12 - Prob. 18.1MCQCh. 12 - Prob. 18.2MCQCh. 12 - Prob. 18.3MCQCh. 12 - Prob. 19.1MCQCh. 12 - Prob. 19.2MCQCh. 12 - Prob. 19.3MCQCh. 12 - Prob. 20DQPCh. 12 - Prob. 21DQPCh. 12 - Prob. 22DQPCh. 12 - Prob. 23DQPCh. 12 - Prob. 24DQPCh. 12 - Prob. 25DQPCh. 12 - Prob. 26DQPCh. 12 - Prob. 27DQPCh. 12 - A CPAs client, Boos Baumkirchner, Inc., is a...Ch. 12 - Prob. 29DQPCh. 12 - Prob. 30DQPCh. 12 - Based on a cost-benefit analysis, management at...Ch. 12 - Prob. 32DQPCh. 12 - Prob. 33DQPCh. 12 - Prob. 34DQP
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- The Information Systems Audit and Control Association (ISACA) developed guidelines and procedures on how to follow the standards that apply specifically to the specialized nature of the IS Audit. The guidelines serve as guidance the IS auditor should normally follow. However, there may be situations where the auditor will not follow that guidance. In this case, what happens now to the work done by the IS auditor?arrow_forwardBased on PSA 120, in an audit engagement, the one responsible in establishing internal controls is: Group of answer choices: Auditor, but only when he chooses to rely on controls Management and Auditor Management Auditor, under all casesarrow_forwardYour audit supervisor stated it was important for you to understand AU-C 315. Which organization is the source of the standard? What is the subject of the standard? The PCAOB website has a reference tool that allows you to find analogous ASB standards and IAASB standards. What is the analogous AICPA (ASB) standard for PCAOB AS 2305? What is the analogous IAASB standard? Explain. Your audit supervisor indicated that you would be relying on work done by internal auditors and suggested that you look at SAS No. 128. What AU-C section is associated with SAS No. 128?arrow_forward
- AICPA and PCAOB Responsibilities. The creation of the PCAOB by the Sarbanes–OxleyAct has affected both the standards-setting process and the periodic review of the quality ofan audit firm’s work.Required:a. Identify the responsibilities of the AICPA, PCAOB, and SEC in the auditing standardssetting process.b. Which standard(s) provide guidance for the audits of public entities? Which standard(s)provide guidance for the audits of nonpublic entities?c. What role do the AICPA and PCAOB play in the periodic review of the quality of auditfirms’ work?arrow_forwardAU-C 500 Audit Evidence, in the AICPA auditing standards refers to information produced by the entity. What must the auditor do to evaluate whether information provided by the client is sufficiently reliable?arrow_forward4. Reported internal audit observation emerge as a result of comparing “what should be” with “what is”. In determining “what should be” during an internal audit engagement, which of the following would be the least appropriate criterion against which to assess current controls? Group of answer choices Industry best practices Control policies and procedures prescribed by senior management A standard of control effectiveness determined by internal audit function The controls documented as being in place during the last auditarrow_forward
- 43 To obtain an understanding of the relevant policies and procedures of internal control, the auditor performs all of the following except: Group of answer choices Make observations. Inspect documents and records. Design substantive tests. Make inquiries.arrow_forwardThe PCAOB website has a reference tool that allows you to find analogous ASB standards and IAASB standards. What is the analogous AICPA (ASB) standard for PCAOB AS 2305? What is the analogous IAASB standard? Explain. Your audit supervisor indicated that you would be relying on work done by internal auditors and suggested that you look at SAS No. 128. What AU-C section is associated with SAS No. 128?arrow_forwardIn all audits of governmental units performed according to GAGAS, the most important work isa. Compliance auditing.b. Obtaining a sufficient understanding of internal control.c. Documentation of the audit.d. Exit interviews with managers in the governmental unit.arrow_forward
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