Questions from Auditing and Assurance

Q: Which of the following is an example of fraudulent financial reporting?

Which of the following is an example of fraudulent financial reporting? a. Company management falsifies the inventory count, thereby overstating ending inventory and understating cost of sales. b. An...

Q: What are management’s incentives for establishing and maintaining strong internal control?

What are management’s incentives for establishing and maintaining strong internal control? What are the auditor’s main concerns with internal control?

Q: What factors should the auditor consider when substantive procedures are to be

What factors should the auditor consider when substantive procedures are to be completed at an interim date? If the auditor conducts substantive procedures at an interim date, what audit procedures wo...

Q: What is the auditor’s responsibility for communicating control deficiencies that are severe

What is the auditor’s responsibility for communicating control deficiencies that are severe enough to be considered significant deficiencies or material weaknesses?

Q: What are the potential benefits and risks to an entity’s internal control

What are the potential benefits and risks to an entity’s internal control from information technology?

Q: Describe the five components of internal control.

Describe the five components of internal control.

Q: What are the factors that affect the control environment?

What are the factors that affect the control environment?

Q: What are the major differences between a substantive strategy and a reliance

What are the major differences between a substantive strategy and a reliance strategy when the auditor considers internal control in planning an audit?

Q: Why must the auditor obtain an understanding of internal control?

Why must the auditor obtain an understanding of internal control?

Q: What is meant by the concept of reasonable assurance in terms of

What is meant by the concept of reasonable assurance in terms of internal control? What are the inherent limitations of internal control?