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 21DQP
a)
To determine
Explain the reasons for have an internal auditing department in an organization.
b)
To determine
Identify the six steps to receiving a certification in internal auditing as a Certified Internal Auditor (CIA).
c)
To determine
State the certifications that are available to internal auditors.
d)
To determine
Identify the three parts of the CIA exam, requirements for passing the CIA exam similar to and different from those of the CPA exam.
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Students have asked these similar questions
Which of the following groups is responsible for developing auditing standards for public firms in the U.S.? A. American Institution of Certified Public Accountant (AICPA)B. Public Company Accounting Oversight Board (PCAOB)C. Organizations for Economic Cooperation and Development (OECD)D. Center for Audit Quality (CAQ)
Instructions: The audit profession is considered one of the important professions for society due to the number of users of financial statements who rely on it in making their economic decisions.
The auditor of this data must obtain the confidence of the users of this data. Therefore, professional bodies have been formed to organize the work of the auditors, qualify them, and set their performance standards to achieve this confidence.
Required: Talk about the international, American and Saudi professional bodies and their respective tasks and the standards they issue
Distinguish between auditing standards and generally accepted accounting principles, and give two examples of each.
Auditing standards:
A. represent pronouncements by any of the organizations responsible for setting auditing standards. In the U.S. these standards are set by the PCAOB for public companies and
broker dealers, and by the Auditing Standards Board of the AICPA for other entities.
B. are ten general guidelines to aid auditors in fulfilling their professional responsibilities and maintain professional skepticism and exercise professional judgment.
C. represent the combination of the six principles and four of the Statements on Auditing Standards (SASS) that are codified in the AU-C sections.
D. outline specific rules for accounting for transactions occurring in a business enterprise for all private companies in the United States.
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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Similar questions
- (a) An International Code of Ethics for professional Accountant was developed by International Federation of Accountants (IFAC) with the sole aim of promoting consistency and a foundation for countries to develop their own code. Explain the five fundamental principles which members must comply with as set out by the ACCA's Code of Ethics and Conduct? (b) Critically evaluate the influence of Internal audit function on good corporate governance in a commercial environment. (a) Discuss the importance and extent to which analytical review can be relied on in supporting an audit opinion.arrow_forwardWhich of the following statements is true of auditing? Group of answer choices External audits tend to be more expensive than internal audits. External audits are handled by employees of the organization. Publicly held corporations are required by law to have internal audits regularly. All organizations are required to have a permanent internal auditing staff. Organizations contract with certified public accountants for external audits.arrow_forwardAudit and assurance standards recognize the vital importance of performing audit and assurance activities with proficiency, due professional care and objectivity. Cynthia Cooper, WorldCom whistleblower and internationally recognized expert on ethics and leadership in an interview (https://www.cfo.com/human-capital-careers/2008/02/worldcom-whistle-blower-cynthia-cooper/) on ethics stated, "I think we have to do our best not to forget what we've been through and hold tight to the positive changes in corporate governance that so many people have worked to achieve. Question A: If Management is pressuring an internal auditor to look the other way, explain how the internal audit and assurance professional standards can help in this situation. Question B: In the article, she states, "My feelings changed from curiousity to discomfort to suspicion based on some of the accounting entries my team and I had identified, and also on the odd reactions I was getting from some of the fiannce…arrow_forward
- The AICPA has issued several audit and accounting guides for specialized industries. Do auditors have a responsibility to refer to these guidelines when auditing clients to those industries?arrow_forwardInternational Standards on Auditing (ISAs) are issued by the International Auditingand Assurance Standards Board (IAASB). Use the IAASB Web site (http://www.ifac.org/IAASB/) to learn more about the IAASB and its standard-setting activities.a. What is the objective of the IAASB? Who uses International Standards on Auditing?b. Summarize the due process followed by the IAASB in setting standards.c. How is the IAASB committed to transparency in the standard-setting process?arrow_forwardConsider the following statement and explain the relationship between legal compliance on a global level and ethical responsibilities of accountants and auditors: “Ethical values and legal principles are usually closely related, but ethical obligations typically exceed legal duties.”arrow_forward
- The American Institute of Certified Public Accountants has been the primary source for ethical rules for internal auditors. True or False?arrow_forwardUnder AICPA rules, which of the following services would generally be permitted to be provided to an audit client provided the general requirements are met? Firm accepting responsibility for monitoring client's IT controls (e.g., through automated tool) Providing advice and recommendations related to the application of an accounting standard Staff augmentation services Leading or supervising the audit client's accounting standards implementation teamarrow_forwardOne of an accounting firm’s basic objectives is to provide professional services that conform to professional standards. Reasonable assurance of achieving this objective can be obtained by followinga. Generally accepted auditing standards.b. Standards within a system of quality control.c. Generally accepted accounting principles.d. International auditing standards.arrow_forward
- You are undertaking an audit programme. Discuss teh roles and responsibilites that the lead auditor would undertake when managing the audit program. according to ISO19011:2018arrow_forwardWhat is operational auditing? How does the AICPA (American Institute of Certified Public Accountants) view operational auditing?arrow_forwardWhich of the following is not a purpose of the Center for Audit Quality which is affiliated with the AICPA? a. to serve investors b. to serve the International Accounting Standards Board (IASB) c. to serve the capital markets d. to serve public company auditorsarrow_forward
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