Explanation Explanation for correct option: c. The management prepares the documentation for two purposes, firstly, for internal control and secondly, to provide references to the external auditor at the time of external audit. Therefore, the option (c) is the correct answer as the statement is false. Explanation for incorrect options: a. The management is responsible for providing assurance for financial reporting reliability. Therefore, option (a) is incorrect as this statement is true...

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN: 9781305080577

Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher: South-Western College Pub

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Question

Chapter 3, Problem 35MCQ

To determine

Introduction: Internal control audit refers to the process where an internal auditor assesses the operational efficiency of an organization by ensuring its accountability. The internal control audit if performed in the right way can help in auditing of the financial statements.

To choose: The false statement regarding internal control documentation of management for financial reporting.

Expert Solution & Answer

Chapter 3 Solutions

Auditing: A Risk Based-Approach to Conducting a Quality Audit

Ch. 3 - Prob. 1TFQ Ch. 3 - Prob. 2TFQ Ch. 3 - Prob. 3TFQ Ch. 3 - Prob. 4TFQ Ch. 3 - Prob. 5TFQ Ch. 3 - The control environment is seen as the foundation...Ch. 3 - Prob. 7TFQ Ch. 3 - Prob. 8TFQ Ch. 3 - Prob. 9TFQ Ch. 3 - Prob. 10TFQ

Ch. 3 - Prob. 11TFQ Ch. 3 - Prob. 12TFQ Ch. 3 - Prob. 13TFQ Ch. 3 - Prob. 14TFQ Ch. 3 - Prob. 15TFQ Ch. 3 - Prob. 16TFQ Ch. 3 - Prob. 17TFQ Ch. 3 - Prob. 18TFQ Ch. 3 - Prob. 19TFQ Ch. 3 - Prob. 20TFQ Ch. 3 - Prob. 21MCQ Ch. 3 - Prob. 22MCQ Ch. 3 - What are the components of internal control per...Ch. 3 - Prob. 24MCQ Ch. 3 - Prob. 25MCQ Ch. 3 - Which one of the following components of internal...Ch. 3 - Prob. 27MCQ Ch. 3 - Prob. 28MCQ Ch. 3 - Prob. 29MCQ Ch. 3 - Prob. 30MCQ Ch. 3 - Prob. 31MCQ Ch. 3 - Prob. 32MCQ Ch. 3 - Prob. 33MCQ Ch. 3 - Prob. 34MCQ Ch. 3 - Prob. 35MCQ Ch. 3 - Prob. 36MCQ Ch. 3 - Prob. 37MCQ Ch. 3 - Prob. 38MCQ Ch. 3 - Prob. 39MCQ Ch. 3 - Prob. 40MCQ Ch. 3 - Prob. 41RSCQ Ch. 3 - Prob. 42RSCQ Ch. 3 - Prob. 43RSCQ Ch. 3 - Prob. 44RSCQ Ch. 3 - Distinguish between entity-wide and transaction...Ch. 3 - Refer to Exhibit 3.2. List the principles...Ch. 3 - Prob. 47RSCQ Ch. 3 - Prob. 48RSCQ Ch. 3 - Prob. 49RSCQ Ch. 3 - Prob. 50RSCQ Ch. 3 - Refer to Exhibit 3.3. For each risk assessment...Ch. 3 - Prob. 52RSCQ Ch. 3 - Prob. 53RSCQ Ch. 3 - Prob. 54RSCQ Ch. 3 - Prob. 55RSCQ Ch. 3 - Prob. 56RSCQ Ch. 3 - Prob. 57RSCQ Ch. 3 - Prob. 58RSCQ Ch. 3 - Authorization of transactions is a key control in...Ch. 3 - Prob. 60RSCQ Ch. 3 - Prob. 61RSCQ Ch. 3 - Prob. 62RSCQ Ch. 3 - Prob. 63RSCQ Ch. 3 - Prob. 64RSCQ Ch. 3 - Prob. 65RSCQ Ch. 3 - Prob. 66RSCQ Ch. 3 - Prob. 67RSCQ Ch. 3 - Prob. 68RSCQ Ch. 3 - Refer to Exhibit 3.9. What are the important...Ch. 3 - Refer to Exhibit 3.10 and Exhibit 3.11. Describe...Ch. 3 - Prob. 71RSCQ Ch. 3 - Prob. 72RSCQ Ch. 3 - Prob. 73RSCQ Ch. 3 - Prob. 74RSCQ Ch. 3 - Assume that management is gathering evidence as...Ch. 3 - Prob. 76RSCQ Ch. 3 - Prob. 77RSCQ Ch. 3 - Prob. 78RSCQ Ch. 3 - Prob. 79FF Ch. 3 - Diamond Foods, Inc. (LO 8, 9) In February 2012,...

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Similar questions

Assume that management is gathering evidence as part of its process for assessing the effectiveness of internal control over financial reporting. The company is a manufacturer of high-dollar specialized Control Tested machines used in the medical profession. The following table identifies important controls that management is testing regarding accounts related to revenue recognition, accounts receivable, and other sales related activities. The first column describes the control, and the second column describes the test results. Based on the test results, determine the conclusion that management should likely make about the deficiency. (Is it a control deficiency, a significant deficiency, or a material weakness?)

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