Questions from Auditing and Assurance

Q: For each of the following procedures taken from the quality control manual

For each of the following procedures taken from the quality control manual of a CPA firm, identify the applicable element of quality control from Table 2-3 on page 39. a. All potential new clients are...

Q: The following are five independent situations. 1. Joanie Brogan

The following are five independent situations. 1. Joanie Brogan is a partner in an audit firm that operates as a limited liability partnership (LLP). The firm has been sued for an alleged audit failur...

Q: Siva Kumar and Vera Collier are friends who are employed by different

Siva Kumar and Vera Collier are friends who are employed by different CPA firms. One day during lunch they are discussing the importance of internal control in determining the amount of audit evidence...

Q: The following internal controls were identified by the auditor while gaining an

The following internal controls were identified by the auditor while gaining an understanding of internal control for the sales cycle. 1. Access to the customer master file is restricted to authorized...

Q: Is the auditor’s liability under common law affected if the third party

Is the auditor’s liability under common law affected if the third party was unknown rather than known? Explain.

Q: Each of the following internal controls has been taken from a standard

Each of the following internal controls has been taken from a standard internal control questionnaire used by a CPA firm for assessing control risk in the payroll and personnel cycle. 1. Human resourc...

Q: The following are partial descriptions of internal controls for companies engaged in

The following are partial descriptions of internal controls for companies engaged in the manufacturing business: 1. Every day, hundreds of employees clock in using their employee identification cards...

Q: Items 1 through 10 are selected questions of the type generally found

Items 1 through 10 are selected questions of the type generally found in internal control questionnaires used by auditors to obtain an understanding of internal control in the sales and collection cyc...

Q: The following are commonly performed tests of controls and substantive tests of

The following are commonly performed tests of controls and substantive tests of transactions audit procedures in the sales and collection cycle: 1. Review the prelisting of cash receipts to determine...

Q: The following is a list of possible errors or fraud (1

The following is a list of possible errors or fraud (1 through 8) involving sales and controls (a. through k.) that may prevent or detect the errors or fraud: Possible Errors or Fraud 1. Invoices are...