Questions from Auditing and Assurance

Q: What type of knowledge must an accountant possess about the entity in

What type of knowledge must an accountant possess about the entity in order to perform a compilation engagement? A review engagement?

Q: Define corporate governance. Why do you think an effective internal audit

Define corporate governance. Why do you think an effective internal audit function is referred to as one of the cornerstones of corporate governance?

Q: What actions can result in an auditor being held criminally liable under

What actions can result in an auditor being held criminally liable under statutes and regulations?

Q: Describe what is meant when it is said that an auditor is

Describe what is meant when it is said that an auditor is “associated with” a set of financial statements.

Q: Prepaid expenses are generally assessed to have a low inherent risk.

Prepaid expenses are generally assessed to have a low inherent risk. Why would intangible assets present serious inherent risk consideration?

Q: What are the most important assertions for long-term debt?

What are the most important assertions for long-term debt? What documents would normally contain the authorization to issue long-term debt?

Q: Confirmations of long-term debt provide evidence about which assertions?

Confirmations of long-term debt provide evidence about which assertions?

Q: List two common disclosures for stockholders’ equity and why such disclosures are

List two common disclosures for stockholders’ equity and why such disclosures are necessary.

Q: Confirmation is a useful audit procedure for verifying information related to prepaid

Confirmation is a useful audit procedure for verifying information related to prepaid insurance. What type of information would be requested from an entity’s insurance broker in such a confirmation?

Q: Explain why the standard bank confirmation form does not identify all information

Explain why the standard bank confirmation form does not identify all information about an entity’s bank accounts or loans.