Questions from Auditing and Assurance

Q: Many CPA firms are taking a business risk approach to audits.

Many CPA firms are taking a business risk approach to audits. Define what is meant by business risk. Provide an example of a business risk that could result in a risk of material misstatement of the f...

Q: Internal auditing is a staff function found in virtually every large corporation

Internal auditing is a staff function found in virtually every large corporation. The internal audit function is also performed in many smaller companies as a part-time activity of individuals who may...

Q: Randall, Inc., is a private company that manufactures heavy machinery

Randall, Inc., is a private company that manufactures heavy machinery. The company has an active audit committee and board of directors. The audit committee consists of two outside directors and Howar...

Q: Auditors encounter the use of user operated computers on almost every audit

Auditors encounter the use of user operated computers on almost every audit engagement. a. How do user operated computers differ from large computer systems? b. When are the auditors concerned with in...

Q: The use of test data is one method of performing tests of

The use of test data is one method of performing tests of processing controls in an IT-based system. Identify and discuss several other methods by which auditors may test internal processing controls...

Q: Discuss how generalized audit software can be used to aid the auditors

Discuss how generalized audit software can be used to aid the auditors in examining accounts receivable in a fully IT-based system.

Q: An integrated test facility (ITF) is a method used primarily

An integrated test facility (ITF) is a method used primarily by internal auditors for testing IT based system controls. Discuss the advantages and disadvantages of implementing an ITF.

Q: Many companies have part or all of their IT processing done by

Many companies have part or all of their IT processing done by cloud service providers. a. What controls should the company maintain to ensure the accuracy of processing done by a cloud service provid...

Q: A primary requirement of effective internal control is a satisfactory plan of

A primary requirement of effective internal control is a satisfactory plan of organization. Explain the characteristics of a satisfactory plan of organization for an information systems department, in...

Q: Distinguish between batch processing and online real-time (OLRT)

Distinguish between batch processing and online real-time (OLRT) processing. In which of these systems is strong internal control over input most easily attained? Explain.