Questions from Auditing and Assurance

Q: A control deviation caused by an employee performing a control procedure that

A control deviation caused by an employee performing a control procedure that he or she is not authorized to perform is always considered a a. Deficiency in design. b. Deficiency in operation. c. Sign...

Q: Which of the following is not a factor that might affect the

Which of the following is not a factor that might affect the likelihood that a control deficiency could result in a misstatement in an account balance? a. The susceptibility of the related assets or l...

Q: Entity-level controls can have a pervasive effect on the entity’s

Entity-level controls can have a pervasive effect on the entity’s ability to meet the control criteria. Which one of the following is not an entity-level control? a. Controls to monitor results of ope...

Q: For each of the following cases, indicate why management and the

For each of the following cases, indicate why management and the auditors determined that the control deficiency was a material weakness. Case 1: In our assessment of the effectiveness of internal con...

Q: For each of the following independent situations, indicate the type of

For each of the following independent situations, indicate the type of report on ICFR you would issue. Justify your report choice. a. Hansen, Inc., has restated previously issued financial statements...

Q: For each of the following independent situations relating to the audit of

For each of the following independent situations relating to the audit of ICFR, indicate the reason for and the type of audit report you would issue. a. During the audit of Wood Pharmaceuticals, you a...

Q: For each of the following independent situations, indicate the type of

For each of the following independent situations, indicate the type of report on ICFR you would issue. Justify your report choice. a. The management’s report on ICFR issued by Graham Granary, Inc., in...

Q: Define audit risk and materiality. How are these concepts reflected in

Define audit risk and materiality. How are these concepts reflected in the auditor’s report?

Q: Assume that scenario (b) in Problem 7-36 is

Assume that scenario (b) in Problem 7-36 is a material weakness. Prepare a draft of the auditor’s report for an audit of ICFR. Assume that First Coast’s auditor is issuing a combined report for the fi...

Q: Brown, CPA, is auditing the financial statements of Big Z

Brown, CPA, is auditing the financial statements of Big Z Wholesaling, Inc., a continuing audit client, for the year ended January 31, 2018. On January 5, 2018, Brown observed the tagging and counting...