Tut 342 - 4

ased on an assessment of audit risk, the auditors are concerned with the following two risks:   The risk that that the client might be making duplicate payments to vendors. The risk that the client’s accounting clerk might be making unauthorized payments to himself.   Required: a. Assuming that the client has a manual accounting system, describe how the auditors can design a test to identify the duplicate payments and unauthorized payments. b. Assuming that the client has an IT accounting system, describe how the auditors might use data analytic software to design a test to identify the duplicate payments and the unauthorized payments. b. Assuming that the client has an IT accounting system, describe how the auditors might use data analytic software to design a test to identify the duplicate payments and the unauthorized payments.

Based on an assessment of audit risk, the auditors are concerned with the following two risks:   The risk that that the client might be making duplicate payments to vendors. The risk that the client’s accounting clerk might be making unauthorized payments to himself.   Required: a. Assuming that the client has a manual accounting system, describe how the auditors can design a test to identify the duplicate payments and unauthorized payments.       b. Assuming that the client has an IT accounting system, describe how the auditors might use data analytic software to design a test to identify the duplicate payments and the unauthorized payments.       c. Describe the advantages of using data analytics software to identify unusual transactions or entries.

Case 3.11 - Equifax Suppose during a financial statement or ICFR audit that the auditors identify cybersecurity risks not having direct financial statement or ICFR implications. What should the audit team do in such circumstances?

Why is there a need on the part of the client entity to monitor internal controls over time? a. Because the auditor needs to obtain understanding of internal control b. Because unmonitored controls tend to deteriorate over time c. Because it will affect the timing of substantive audit procedures d. Because it is a requirement of the applicable financial reporting framework

The internal audit can pinpoint the person responsible for carelessness. This will help to: Determine Liability Asset Protection Performance Appraisal Provide Suggestions Which one of the following is not true about internal auditors? üzul lis TOSHIBA

What are the objectives of audit risk assessment, and why is it important in assessing the likelihood that fraud may occur? Explain why risk assessment performed during audit planning sets the tone for the entire audit engagement.

Which of the following is/are the least persuasive type of audit evidences? 1. Photocopies of sales invoices inspected by the auditor 2. Documents obtained by auditor from third parties directly 3. Bank statements obtained from the client 4. Computations made by the auditor. 1, 3 and 4 only 1 and 3 only 2 only 1 only Which one of the following indicates high degree of detection risk in respect to fl

Why might fraud examiners’ attitudes about control systems and materiality differ from that ofother auditors?

Fast answer please

What is the auditor’s strategy for detecting and preventing fraud with emphasis on risk analysis?

The underlying assumption of reasonable assurance regarding implementation of internal control means thata. auditor is reasonably assured that fraud has not occurred in the period.b. auditors are reasonably assured that employee carelessness can weaken an internal control structure.c. implementation of the control procedure should not have a significant adverse effect on efficiency or profitability.d. management assertions about control effectiveness should provide auditors with reasonable assurance.e. a control applies reasonably well to all forms of computer technology.

S1: The role played by the audit committee is so significant that an ineffective audit committee or lack of it influences the auditor's assessment of the control environment. S2: Making the narrative description to document understanding of client's internal control is less time consuming compared to merely checking the answer columns in the ICQ method. S3: After obtaining sufficient knowledge about the internal control structure and verifying that the policies and procedures have actually been placed in operation, the next step would be to determine the planned assessed level of control risk for the different financial statement assertions.    A. all statements are true B. all statements are false C. S1 and S2 are true D. S1 and S3 are true

Which of the following statements is not true? a. The auditor’s main duty is the detection and prevention of fraud b. Management fraud is more difficult to detect than employee fraud c. All of these statements are true. d. Internal control system reduces the errors and fraud

The auditor faces a risk that the audit will not detect material misstatements that occur in the accounting process. To minimize this​ risk, the auditor relies primarily on     1. substantive tests.   2. tests of controls.   3. internal control.   4. statistical analysis.

When it comes to control systems and materiality, why could fraud examiners' views vary from those of other auditors?

Explain the components and objectives of audit risk? How is audit risk involved in assessing the likelihood that fraud may occur and where it's most likely to occur within the financial statements? How does risk assessment during the planning stage of an audit impact the tone for the entire audit engagement?

When it comes to control systems and materiality, why may fraud examiners' perspectives be different from those of other auditors?

An audit opinion of a company’s fi nancial reports is most likely intended to:A . detect fraud.B . reveal misstatements.C . assure that fi nancial information is presented fairly.

Is it necessary for an auditor to get a knowledge of a client's internal controls if the auditor does not plan to depend on the client's internal controls in the course of the audit? Explain.

In auditing, ____________ is the process of identifying and assessing the risks of material misstatement in the financial statements, allowing auditors to tailor their audit procedures accordingly.

When obtaining an understanding of the entity and its environment, including its internal control, the auditor may identify events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Such events or conditions are referred to as   Group of answer choices   Fraud environment.   Fraud risk factors.   Fraudulent activities.   Fraud conditions