Questions from Auditing and Assurance

Q: What two conditions must be present for the auditor to issue an

What two conditions must be present for the auditor to issue an unqualified opinion on internal control over financial reporting? What type of condition will cause the auditor to issue a qualified or...

Q: Explain the effect of extensive misstatements found in the prior year's audit

Explain the effect of extensive misstatements found in the prior year's audit on inherent risk, planned detection risk, and planned audit evidence.

Q: Distinguish between the sales journal and the accounts receivable master file.

Distinguish between the sales journal and the accounts receivable master file. What type of information is recorded in each and how do these accounting records relate?

Q: Describe the concept of an integrated audit of the financial statements and

Describe the concept of an integrated audit of the financial statements and internal control required by PCAOB standards.

Q: Dodge, CPA, is auditing the financial statements of a manufacturing

Dodge, CPA, is auditing the financial statements of a manufacturing company with a significant amount of trade accounts receivable. Dodge is satisfied that the accounts are correctly summarized and cl...

Q: List the transaction-related audit objectives for the verification of cash

List the transaction-related audit objectives for the verification of cash receipts. For each objective, state one internal control that the client can use to reduce the likelihood of misstatements.

Q: The auditor of Ferguson's Inc. identified two internal controls in the

The auditor of Ferguson's Inc. identified two internal controls in the sales and collection cycle for testing. In the first control, the computer verifies that a planned sale on account will not excee...

Q: What is a walkthrough of internal control? What is its purpose

What is a walkthrough of internal control? What is its purpose?

Q: The following questions deal with deficiencies in internal control. Choose the

The following questions deal with deficiencies in internal control. Choose the best response. a. Which of the following is an example of an operation deficiency in internal control? (1) The company do...

Q: The following questions deal with assessing control risk in a financial statement

The following questions deal with assessing control risk in a financial statement audit. Choose the best response. a. The auditor's tests of controls revealed that required approvals of cash disbursem...