Questions from Auditing and Assurance

Q: When auditors report on the effectiveness of internal control “as of

When auditors report on the effectiveness of internal control “as of” a specific date and obtain evidence about the operating effectiveness of controls at an interim date, which of the following items...

Q: AnnaLisa, an auditor for N. M. Neal & Associates

AnnaLisa, an auditor for N. M. Neal & Associates, is prevented by the management of Lileah Company from auditing controls over inventory. Lileah is a public company. Management explains that controls...

Q: In auditing a public company, Natalie, an auditor for N

In auditing a public company, Natalie, an auditor for N. M. Neal & Associates, identifies four deficiencies in ICFR. Three of the deficiencies are unlikely to result in financial misstatements that ar...

Q: In auditing ICFR for a public company, Emily finds that the

In auditing ICFR for a public company, Emily finds that the entity has a significant subsidiary located in a foreign country. Emily’s accounting firm has no offices in that country, and the entity has...

Q: Which of the following statements concerning control deficiencies is true?

Which of the following statements concerning control deficiencies is true? a. The auditor should communicate to management, in writing, all control deficiencies in internal control identified during t...

Q: Significant deficiencies and material weaknesses must be communicated to an entity’s audit

Significant deficiencies and material weaknesses must be communicated to an entity’s audit committee because they represent a. Material fraud or illegal acts perpetrated by high-level management. b. D...

Q: Why might understanding the characteristics of an entity’s business model be important

Why might understanding the characteristics of an entity’s business model be important for a financial statement auditor?

Q: Which of the following most likely represents a weakness in internal control

Which of the following most likely represents a weakness in internal control of an IT system? a. The systems analyst reviews output and controls the distribution of output from the IT department. b. T...

Q: A primary advantage of using generalized audit software packages to audit the

A primary advantage of using generalized audit software packages to audit the financial statements of an entity that uses an IT system is that the auditor may a. Consider increasing the use of substan...

Q: The Sarbanes-Oxley Act of 2002 requires management to include a

The Sarbanes-Oxley Act of 2002 requires management to include a report on the effectiveness of ICFR in the entity’s annual report. It also requires auditors to report on the effectiveness of ICFR. Whi...