Auditing And Assurance Services
Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Chapter 26, Problem 15.1MCQ
To determine

Identify the person to whom reporting will assure independence of the internal audit department.

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The independence of the internal audit department will most likely be assured if itreports to the(1) president. (4) audit committee of the board of directors.(2) controller. (5) vice president of finance.(3) treasurer.
What is meant by internal control based on the professional standards of a public accountant is:a. A process carried out by the Board of Directors and the Board of Commissioners which is designed to provide adequate assurance about the reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable laws.b. A process carried out by the Board of Commissioners, management and other personnel of the entity that is designed to provide reasonable assurance about the reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable laws.c. A process carried out by all members of the internal audit department of a company to detect errors in the processes run by the companyd. B and C are correcte. All wrong
The recommendations applicable to the accounts and audit includes:  a) The board should present a balanced and understandable assessment of the company's position and prospects b) The board should maintain a sound system of internal control to safeguard shareholders' investment and the company's assets. c) The board should, at least annually, conduct a review of the effectiveness of internal controls and should report that they have done so. d) The board should establish formal and transparent arrangements to consider how they should apply the financial reporting and internal control principles and for maintaining an appropriate relationship with the auditors All a) , b) , c) and d) Only a) , b) and c) Only b) , c) and d) Only a) , b) and d)
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