Questions from Auditing and Assurance

Q: While performing a walk-through, auditors ordinarily make certain inquiries

While performing a walk-through, auditors ordinarily make certain inquiries of employees. Provide three examples of such inquiries.

Q: Auditors often perform walk-throughs in integrated audits. Describe the

Auditors often perform walk-throughs in integrated audits. Describe the evidence that is typically provided by a walk-through.

Q: When using statistical sampling to evaluate results using mean-per-

When using statistical sampling to evaluate results using mean-per-unit sampling, may one conclude at the tested risk levels that an account is not materially misstated whenever the projected misstate...

Q: When performing an audit of internal control over financial reporting, auditors

When performing an audit of internal control over financial reporting, auditors may distinguish among the following types of transactions: routine, nonroutine, and accounting estimates. Distinguish be...

Q: When performing an integrated audit, auditors should identify significant accounts and

When performing an integrated audit, auditors should identify significant accounts and disclosures. What makes an account significant? What factors should be considered in deciding whether an account...

Q: A client operates out of 25 locations. Must the CPA perform

A client operates out of 25 locations. Must the CPA perform tests related to internal control at each of these locations?

Q: Comment on the following: “Auditors must decide, based on

Comment on the following: “Auditors must decide, based on cost considerations, whether to test the design effectiveness or operating effectiveness of controls.”

Q: Provide an example of a situation in which the design of controls

Provide an example of a situation in which the design of controls may be effective but those controls do not operate effectively.

Q: Comment on the following: “Inquiry alone does not provide sufficient

Comment on the following: “Inquiry alone does not provide sufficient evidence to support the operating effectiveness of a control.”

Q: Comment on the following: “All controls should be tested either

Comment on the following: “All controls should be tested either prior to or on the ‘as of’ date.”