Auditing and Assurance Services, Student Value Edition (16th Edition)
16th Edition
ISBN: 9780134075754
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 26, Problem 16.1MCQ
To determine
Identify the reporting authority that assures the independence of internal audit department.
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Students have asked these similar questions
g. In general, internal auditors' independence will be greatest when they report directly to the:
Multiple Choice
O
Financial vice president.
Corporate controller.
Audit committee of the board of directors.
Stockholders.
The authority to appoint first independent auditor is vested to __________
a.
The shareholders
b.
The board of directors
c.
The management
d.
The Central Government
Identify from the following the department who are responsible to appoint internal auditors and organize independent internal audit
a. Legal advisor
b. External agency
c. Shareholders
d. Management
Chapter 26 Solutions
Auditing and Assurance Services, Student Value Edition (16th Edition)
Ch. 26 - Prob. 1RQCh. 26 - Prob. 2RQCh. 26 - Prob. 3RQCh. 26 - Prob. 4RQCh. 26 - Prob. 5RQCh. 26 - Prob. 6RQCh. 26 - Prob. 7RQCh. 26 - Prob. 8RQCh. 26 - Prob. 9RQCh. 26 - Prob. 10RQ
Ch. 26 - Prob. 11RQCh. 26 - Prob. 12RQCh. 26 - Prob. 13RQCh. 26 - Prob. 14RQCh. 26 - Prob. 15RQCh. 26 - Prob. 16.1MCQCh. 26 - Prob. 16.2MCQCh. 26 - Prob. 16.3MCQCh. 26 - Prob. 17.1MCQCh. 26 - Prob. 17.2MCQCh. 26 - Prob. 17.3MCQCh. 26 - Prob. 18.1MCQCh. 26 - Prob. 18.2MCQCh. 26 - Prob. 18.3MCQCh. 26 - Prob. 19.1MCQCh. 26 - Prob. 19.2MCQCh. 26 - Prob. 19.3MCQCh. 26 - Prob. 20DQPCh. 26 - Prob. 21DQPCh. 26 - Prob. 22DQPCh. 26 - Prob. 23DQPCh. 26 - Prob. 24DQPCh. 26 - Prob. 25DQP
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- Question: In corporate governance, what is the primary function of an audit committee? A) Financial statement preparation B) Internal control evaluation C) Marketing strategy development D) Employee training and developmentarrow_forwardAudit committees have an essential role to play in ensuring the integrity and transparency of corporate reporting. The external auditor will normally report to the audit committee on all the following matters except: Select one: a.Detected frauds. b.Future staff requirements of the audit firm. c.Potential breach of Corporation Act 2001. d.The management responsibility in presenting annual financial reports.arrow_forwardOne of the duties of an audit committee is to provide financial information at first to the board of director for taking appropriate decision which is in the favor of organization. The qualitative aspects of financial information include ________________. a. Not only providing financial data but adding recommendations for board of directors b. All of the options c. Providing non-financial data for getting insights d. Financial data of past and present yearsarrow_forward
- 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 wrongarrow_forwardWhich of the following tasks is a function of an audit committee? Select one: a. Making decisions regarding the purchase of company assets. b. Appointing the external auditor. c. Preparing the financial report for audit. d. Overseeing the application of appropriate accounting policies and procedures to ensure appropriate disclosure.arrow_forwardFor each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations. a. Boards must have an audit committee with a minimum of three independent directors. b. The audit committee must have a written charter that addresses the committee's purpose and responsibilities, and the committee must produce an audit committee report; there must also be an annual performance evaluation of the committee.arrow_forward
- Under the Public Financial Management Act, Audit Committees are required to play important roles in corporate governance and Accountability.arrow_forwardDetail the roles of non executive director , chief finance officer (CFO), Audit Committee and external auditor in governance.arrow_forwardThe Sarbanes-Oxley Act (SOX) mandates which of the following? a. Increased regulations related to auditor–client relations. b. Increased regulations related to internal control. c. Increased regulations related to corporate executive accountability. d. All of the above.arrow_forward
- Which department is IN charge in overseeing the External Audit Activity?  Audit Committee Internal Audit Department Accounting Department Human Resource Departmentarrow_forwardWhich of the following individuals is incharge of the Policies and Procedures of the Organization  Chief Audit Executive only Management Certified Public Accountant Internal Auditorarrow_forwardGovernmental auditing can extend beyond audits of financial statements to include audits ofan agency’s efficient and economical use of resources anda. Constitutionality of laws and regulations governing the agency.b. Evaluation of the personal managerial skills shown by the agency’s leaders.c. Correspondence of the agency’s performance with public opinion regarding the socialworth of its mission.d. Evaluations concerning the agency’s achievements of the goals set by the legislature forthe agency’s activities.arrow_forward
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