Questions from Auditing and Assurance

Q: Each of the following internal controls has been taken from a standard

Each of the following internal controls has been taken from a standard internal control questionnaire used by a CPA firm for assessing control risk in the payroll and personnel cycle. 1. Approval of d...

Q: In Figure13-3, explain the difference among C3, C2

In Figure13-3, explain the difference among C3, C2, and C1. Explain the circumstances under which it will be a good decision to obtain audit assurance from substantive tests at point C1. Do the same f...

Q: Rank the following types of tests from most costly to least costly

Rank the following types of tests from most costly to least costly: analytical procedures, tests of details of balances, risk assessment procedures, tests of controls and substantive tests of transact...

Q: List the transaction-related audit objectives for the audit of sales

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

Q: The following are misstatements that have occurred in Fresh Foods Grocery Store

The following are misstatements that have occurred in Fresh Foods Grocery Store, a retail and wholesale grocery company: 1. The incorrect price was used on sales invoices for billing shipments to cust...

Q: Lew Pherson and Vera Collier are friends who are employed by different

Lew Pherson and Vera Collier are friends who are employed by different CPA firms. One day during lunch they are discussing the importance of internal control in determining the amount of audit evidenc...

Q: The Albring Company sells electronics equipment, and has grown rapidly in

The Albring Company sells electronics equipment, and has grown rapidly in the last year by adding new customers. The audit partner has asked you to evaluate the allowance for doubtful accounts at Dece...

Q: Section 404(a) of the Sarbanes-Oxley Act requires

Section 404(a) of the Sarbanes-Oxley Act requires management of a public company to issue a report on internal control over financial reporting (ICOFR) as of the end of the company's fiscal year. Many...

Q: Explain what is meant by lapping and discuss how the auditor can

Explain what is meant by lapping and discuss how the auditor can uncover it. Under what circumstances should the auditor make a special effort to uncover lapping?

Q: In Part V of the Pinnacle Manufacturing case, you prepared a

In Part V of the Pinnacle Manufacturing case, you prepared a performance format audit program. In Part VI, sample sizes will be determined by using nonstatistical or attributes sampling, and the resul...