Questions from Auditing and Assurance

Q: Perform an Internet search to access the text of the Securities Exchange

Perform an Internet search to access the text of the Securities Exchange Act of 1934. Read and summarize the internal control requirements of Section 13(b)(2) of the act.

Q: Management is responsible for designing and maintaining its organization’s internal control.

Management is responsible for designing and maintaining its organization’s internal control. In designing internal control, management must consider controls related to each of the five major internal...

Q: The definition of internal control as contained in COSO’s Internal Control–

The definition of internal control as contained in COSO’s Internal Control–Integrated Framework and the professional standards is quite broad and comprehensive. Required: a. Define internal control a...

Q: Auditors may restrict substantive procedures based on the results of tests of

Auditors may restrict substantive procedures based on the results of tests of controls. Required: a. Discuss and contrast the concepts of the planned assessment of control risk and the revised assess...

Q: The auditors’ consideration of internal control begins with obtaining an understanding of

The auditors’ consideration of internal control begins with obtaining an understanding of the client’s internal control. Required: a. Describe the remaining stages of the auditors’ consideration. b....

Q: Henry Bailey, CPA, is planning the audit of The Neighborhood

Henry Bailey, CPA, is planning the audit of The Neighborhood Store, a local grocery cooperative. Because The Neighborhood Store is a small business operated entirely by part-time volunteer personnel,...

Q: Adherence to generally accepted auditing standards requires, among other things,

Adherence to generally accepted auditing standards requires, among other things, a proper understanding of the existing internal control. The most common approaches to documenting the understanding of...

Q: Management is responsible for establishing effective internal control for its organization,

Management is responsible for establishing effective internal control for its organization, including measures to prevent, deter, and detect fraud. Appendix 7A describes antifraud programs and measure...

Q: Assume that you are auditing the financial statements of Wexler, Inc

Assume that you are auditing the financial statements of Wexler, Inc. As you are reviewing the work on internal control, you become concerned about the adequacy of documentation. Describe the required...

Q: During your first audit of a medium-size manufacturing company,

During your first audit of a medium-size manufacturing company, the owner, John Bell, explains that in order to establish clear-cut lines of responsibility for various aspects of the business, he has...