Questions from Auditing and Assurance

Q: Give one example each of compliance, operational, and forensic audits

Give one example each of compliance, operational, and forensic audits.

Q: Briefly discuss the key events that led up to the Sarbanes-

Briefly discuss the key events that led up to the Sarbanes-Oxley Act of 2002 and the creation of the PCAOB.

Q: Discuss how the events that have so dramatically affected auditors and the

Discuss how the events that have so dramatically affected auditors and the public accounting profession since the Enron scandal may in some sense be “healthy” for the profession.

Q: Compare and contrast management’s responsibility for the entity’s financial statements with the

Compare and contrast management’s responsibility for the entity’s financial statements with the auditor’s responsibilities for detecting errors and fraud in the financial statements.

Q: What roles do information systems and systems of internal control play in

What roles do information systems and systems of internal control play in the high level model of business discussed in the chapter, and why might it be important for an auditor to understand these ro...

Q: As lower acceptable levels of both audit risk and materiality are established

As lower acceptable levels of both audit risk and materiality are established, the auditor should plan more work on individual accounts to a. Find smaller errors. b. Find larger errors. c. Increase th...

Q: What types of inquiries about a prospective client should an auditor make

What types of inquiries about a prospective client should an auditor make to third parties?

Q: What are the three general types of audit tests? Define each

What are the three general types of audit tests? Define each type of audit test and give two examples.

Q: Why is it important for CPA firms to develop policies and procedures

Why is it important for CPA firms to develop policies and procedures for establishing materiality?

Q: List and describe the three major steps in applying materiality to an

List and describe the three major steps in applying materiality to an audit.