Questions from Auditing and Assurance

Q: When completing the audit of internal controls for a public company,

When completing the audit of internal controls for a public company, AS 2201 requires auditors to test a. Operating effectiveness only. b. Design effectiveness only. c. Both operating and design effec...

Q: Which of the following would probably not be considered an indication of

Which of the following would probably not be considered an indication of a material weakness? a. Evidence of a material misstatement. b. Ineffective oversight by the audit committee. c. Immaterial fra...

Q: Which report would not be appropriate for a public accounting firm to

Which report would not be appropriate for a public accounting firm to provide on financial reporting controls? a. Unqualified—no material weaknesses found. b. Disclaimer of opinion—unable to perform a...

Q: Why do auditors focus on completeness of expenditures as a significant account

Why do auditors focus on completeness of expenditures as a significant account and relevant assertion in the expenditure cycle?

Q: What controls should be implemented to safeguard accounts receivable files?

What controls should be implemented to safeguard accounts receivable files?

Q: Why is inherent risk for the existence of inventory an issue in

Why is inherent risk for the existence of inventory an issue in the expenditure cycle audit?

Q: If an account payable is left off the end of the period

If an account payable is left off the end of the period balance, what are the possible other accounts that may be misstated?

Q: What feature of the acquisition and expenditure control would be expected to

What feature of the acquisition and expenditure control would be expected to prevent an employee’s embezzling cash through creation of fictitious vouchers?

Q: How should an auditor test for proper authorization in the expenditure cycle

How should an auditor test for proper authorization in the expenditure cycle?

Q: Where would an auditor find the proper authorization that indicates it is

Where would an auditor find the proper authorization that indicates it is okay to pay a vendor?