Questions from Auditing and Assurance

Q: What two aspects of internal control must management assess when reporting on

What two aspects of internal control must management assess when reporting on internal control to comply with Section 404 of the Sarbanes-Oxley Act?

Q: Identify the eight accounts receivable balance-related audit objectives. For

Identify the eight accounts receivable balance-related audit objectives. For each objective, list one audit procedure.

Q: Niosoki Auto Parts sells new parts for foreign automobiles to auto dealers

Niosoki Auto Parts sells new parts for foreign automobiles to auto dealers. Company policy requires that a prenumbered shipping document be issued for each sale. At the time of pickup or shipment, the...

Q: Chapter 8 introduced the eight parts of the planning phase of audits

Chapter 8 introduced the eight parts of the planning phase of audits. Which part is understanding internal control and assessing control risk? What parts precede and follow that understanding and asse...

Q: Explain what is meant by making an estimate of the total misstatement

Explain what is meant by making an estimate of the total misstatement in a segment and in the overall financial statements. Why is it important to make these estimates? What is done with them?

Q: What is the relationship among the five components of internal control?

What is the relationship among the five components of internal control?

Q: The following internal controls for the acquisition and payment cycle were selected

The following internal controls for the acquisition and payment cycle were selected from a standard internal control questionnaire. 1. Checks are mailed by the owner or manager or a person under her s...

Q: List the types of specific control activities and provide one specific illustration

List the types of specific control activities and provide one specific illustration of a control in the sales area for each control activity.

Q: Distinguish between the terms tolerable misstatement and preliminary judgment about materiality.

Distinguish between the terms tolerable misstatement and preliminary judgment about materiality. How are they related to each other?

Q: What is the difference between the auditor's approach in verifying sales returns

What is the difference between the auditor's approach in verifying sales returns and allowances and that for sales? Explain the reasons for the difference.