Questions from Auditing and Assurance

Q: What requirements exist when the auditors use the work of client personnel

What requirements exist when the auditors use the work of client personnel as a part of the evidence obtained for an audit of internal control? In which areas of the audit would one expect this to be...

Q: Identify management’s four overall responsibilities with respect to internal control over financial

Identify management’s four overall responsibilities with respect to internal control over financial reporting that arise due to the Securities and Exchange Commission’s implementation of the Sarbanes-...

Q: Provide an example of a situation in which the performance of substantive

Provide an example of a situation in which the performance of substantive procedures for the financial statement audit might affect the internal control audit.

Q: The mean of the audited values in a sample is $20

The mean of the audited values in a sample is $20. The accounts in that sample have a mean book value of $21, and the entire population of 10,000 accounts has an average book value of $19. Using mean-...

Q: Provide an example of a situation in which the performance of tests

Provide an example of a situation in which the performance of tests of controls for the internal control audit might affect the performance of substantive procedures in a financial statement audit.

Q: Distinguish between entity-level controls and controls designed to achieve specific

Distinguish between entity-level controls and controls designed to achieve specific control objectives.

Q: Provide three examples of findings by the auditors that are at least

Provide three examples of findings by the auditors that are at least significant deficiencies and strong indicators of the existence of a material weakness in internal control.

Q: The auditors have completed an examination of internal control and are preparing

The auditors have completed an examination of internal control and are preparing to issue a report. Does the opinion paragraph on the client’s internal control conclude on internal control or manageme...

Q: What type of report on internal control is likely to be issued

What type of report on internal control is likely to be issued when management imposes a scope limitation?

Q: If an adverse internal control report is issued by the auditors,

If an adverse internal control report is issued by the auditors, may an unqualified report be issued on the financial statements?