Prior to SOX, external auditors were required to be familiar with the client organization’s internal controls, but not test them. Explain.

Q: Which of the following is not a typical problem found by auditors when cleansing client data for the…

A: Option D

Q: For each of the following, determine how the effectiveness of the entity's internal control affect…

A: a)  As the entity's internal control is more effective. Auditor would assess less level of material…

Q: Compare and contrast the work of external and internal audit in relation to internal controls.

A: Internal control is an important part of every organization. It helps in maintaining the efficiency…

Q: Explain what lapping means, and discuss the internal control deficiency that allows it discuss the…

A: Lapping: It is a type of cash embezzlement or fraud perpetrated by a firm employee. When cash is…

Q: When an auditor tests the internal controls of a computerized accounting system, which of the…

A: Internal controls are the procedures that are implemented for controlling the fraudulent activities…

Q: AU-C section is associated with SAS No. 128

A: SAS No. 128 is the statement on auditing standards on "Using the work of internal auditors". This…

Q: If the auditor is unable to rely on the IT general controls or application controls of a client,…

A: Correct option is D. Control risk as high   If the auditor is unable to rely on the IT general…

Q: A key criterion in auditing (both internal and external) is independence. In what way (s) can…

A: There are mainly two types of audits in a business that are external audit and internal audit.…

Q: ome limitations of internal controls?

A: Control Environment. The phrases "control environment" and "internal control environment" are…

Q: Is it necessary for an auditor to get a knowledge of a client's internal controls if the auditor…

A: An auditor is required to express an opinion on the true and fair view of the state of affairs and…

Q: Many auditors assert that certain audit tests can be significantlyreduced for clients with adequate…

A: Auditing:   In auditing, auditors verify the correctness and fair presentation of financial…

Q: A CIS environment exists when a computer of any type o. size is involved in processing of an…

A: Answer: CIS is defined as one of information system which is based on computer information system.…

Q: The test that involves inquiries and observation of client personnel and routines to determine how…

A: An audit test is a procedure designed from sample taken from a larger population. The idea is to…

Q: Which of the following are common issues with benchmarking tool used by internal auditors?…

A: Benchmarking means analysing and comparing the performance of one (our) company with the other…

Q: What are the three potential tools available to auditors for documenting their understanding of a…

A: The auditor checks the accuracy level in the financial reporting of one entity.

Q: Give some instances of the dangers to the independence of an external auditor in your explanation.

A: This question deals with the dangers to the independence of an external auditor in your explanation:…

Q: Discuss how the process of obtaining audit evidence in a CBIS is inherently different than in a…

A: Audit Evidence: Audit evidence is the proof in the form of receipts, invoice and other documents…

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

A:

Q: An internal auditor is examining the effectiveness of procedures management established to protect…

A: "Independent examination of financial information of any company, whether profit-oriented or not,…

Q: If a firm decides early to go with a special-purpose system, such as SAP, based upon the…

A: Accounting Information System:   It is a structural framework used by business to collect, store,…

Q: Explain the normal process an auditor would expect to find in the client's systems. governing…

A: Audit: It is a systematic examination of books of accounts of an individual or a firm. It is done by…

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: nd

A: Control Environment. The phrases "control environment" and "internal control environment" are…

Q: internal controls

A: Internal controls are the set of operational policies and procedures implemented in an organization…

Q: How do the NOCLAR standards change the traditional practice of maintaining confidentiality of audit…

A: Auditing is defined as onsite validation activities such as: Inspection or investigation of…

Q: Operating system security involves policies, procedures, and controls that determine who can access…

A: Test of controls refers to the audit process that test the control effectiveness used through the…

Q: In order to get a knowledge of a client's internal control system, auditors must first identify the…

A: Auditing is a process in which an auditor checks the financial statements and also the accounting…

Q: A CPA may receive a commission for recommending a particular computer system to an audit client.…

A: As per AICPA Code of professional conduct a violation has been occurred if a CPA receives any…

Q: uld consider whether A. the evidential matter obtained from the study of the internal control…

A: Internal control refers to the systematic approach of formulating policies, programs, rules in order…

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: ditors to have a basic knowledge of various bsuin

A: An internal auditor is an employee of the company, whose work is to check the financial records of…

Q: Explain how we might evaluate auditors’ whistleblowing intentions? Why would this be important to…

A: Whistleblowing refers to a worker reporting any wrongdoing suspected at the workplace. Thus a…

Q: You are engaged to examine the financial statements of F4 Incorporated, which has its own computer…

A: Internal control:   It is a process designed by the management team to achieve the objectives like…

Q: What are the three major phases in the audit team’s evaluation of internal control? How does theuse…

A: Following are the three major phases in the audit team's evaluation of the internal control and the…

Q: When a substantive audit strategy is adopted, an auditor will O determine internal controls are…

A: The question is related to Auditing and is of Substantive audit Strategy. Substantive audit Strategy…

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: For each of the above deficiencies, identify the possible impact on the company’s operation and…

A: Internal control is a system of organizing the company in which a set of rules, policies, and…

Q: Which of the following is a possible safeguard i

A: An advocacy threat can occur when an auditor acts on behalf of their client. ... Safeguards to…

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 skill sets and staffing needs of an internal audit activity? Discuss thoroughly.

A: Internal audit : Internal audit is defined as the audit which evaluates the internal controls of the…

Q: The auditor’s risk assessment procedures should always include the following, except       a.…

A: Risk assessment processes should be performed by the auditor to provide a foundation for identifying…

Q: Explain why many people think of internal auditors as theprimary group responsible for conducting…

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

Q: Internal auditors would most appropriately perform which of the following activities during a review…

A: Role of Internal Auditors in Management Information System (MIS) Internal auditor audits the…

Q: What is a service organization? Why would it engage an auditor to report on its controls?

A: A process under which a quality system is inspected, examined, and verified to make sure that it is…

Q: external auditors to utilize the work of internal auditors

A: External auditors are auditors appointed by the shareholders to report on the financial affairs of…