Questions from Auditing and Assurance

Q: The permanent file section of the working papers that is kept for

The permanent file section of the working papers that is kept for each audit client most likely contains a. Review notes pertaining to questions and comments regarding the audit work performed. b. A s...

Q: An audit document that reflects the major components of an amount reported

An audit document that reflects the major components of an amount reported in the financial statements is referred to as a(n) a. Lead schedule. b. Supporting schedule. c. Audit control account. d. Wor...

Q: The primary objective of final analytical procedures is to a.

The primary objective of final analytical procedures is to a. Obtain evidence from details tested to corroborate particular assertions. b. Identify areas that represent specific risks relevant to the...

Q: The substantive analytical procedure known as trend analysis is best described by

The substantive analytical procedure known as trend analysis is best described by a. The comparison, across time or to a benchmark, of relationships between financial statement accounts or between an...

Q: Which of the following statements about internal control is correct?

Which of the following statements about internal control is correct? a. A properly maintained internal control system reasonably ensures that collusion among employees cannot occur. b. The establishme...

Q: Friendly Furniture, Inc., a manufacturer of fine hardwood furniture,

Friendly Furniture, Inc., a manufacturer of fine hardwood furniture, is a publicly held SEC-registered company with a December 31 year-end. During May, Friendly had a flood due to heavy rains at its m...

Q: Internal control is a process designed to provide reasonable assurance regarding the

Internal control is a process designed to provide reasonable assurance regarding the achievement of which objective? a. Effectiveness and efficiency of operations. b. Reliability of financial reportin...

Q: Monitoring is a major component of the COSO Internal Control— Integrated

Monitoring is a major component of the COSO Internal Control— Integrated Framework. Which of the following is not correct in how the company can implement the monitoring component? a. Monitoring can b...

Q: After obtaining an understanding of an entity’s internal control system, an

After obtaining an understanding of an entity’s internal control system, an auditor may set control risk at high for some assertions because the auditor a. Believes the internal controls are unlikely...

Q: Regardless of the assessed level of control risk, an auditor would

Regardless of the assessed level of control risk, an auditor would perform some a. Tests of controls to determine the effectiveness of internal controls. b. Analytical procedures to verify the design...