Client Name: The Boeing CompanyEntity and Environment Category: Objectives, Strategies, and Business RisksYear ended: Completed by: Reviewed by:Business Risk FactorResponsePossible Effect(s) on the AuditDoes the entity set entitywide objectives and are they supported by strategic plans? Does the entity have clear objectives in terms of a budget, profit, and other financial and operating goals? Does the entity have an entity risk assessment process that includes estimating the significance of the risks, assessing the likelihood of their occurring, and determining the actions needed to respond to the risks?

The objective of the question is to understand if the entity, in this case, The Boeing Company, has…

Answered: Client Name: The Boeing Company Entity…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Direction: discussed the process of auditing the followingtransactions/accounts: a. Upstream Sector • Exploration and evaluation (E&E) expenditures• Mineral interest• Oil and gas reserves
Which of the following audit objectives is to validate the assertion of occurrence? * A. All recorded investments on the statement of financial position exist B. All recorded income from investments has accrued to the entity at the reporting date C. All investments owned by the entity at the reporting date are included on the statement of financial position and all income accruing from investments has been recorded D. Investments are included on the statement of financial position at appropriate amounts
Which of the following audit objectives is to validate the assertion of valuation and allocation? * A. All recorded investments on the statement of financial position exist B. All recorded income from investments has accrued to the entity at the reporting date C. All investments owned by the entity at the reporting date are included on the statement of financial position and all income accruing from investments has been recorded D. Investments are included on the statement of financial position at appropriate amounts
Determine whether statement 1 and 2 are true or false 5. S1 -Objectives are the overall plans for the entity, while strategies are the operational approaches by which managements intends to achieve its objectives S2- Not all controls are relevant to the auditor’s risk assessment a. False, False b. True, False c. False, True d. True, True
Aligning the to the organization's strategic objectives links the entire audit process to business objectives and enterprise-wide risks. To effectively allocate audit resources, audit departments should develop a risk-based that takes into consideration the full audit universe and the risks associated with each audit universe item, including any departmental resource constraints. a) audit department; audit strategy b) risk assessment; audit plan c) audit universe; audit approach d) audit charter; audit budget
In performing risk assessment procedures for investments, an auditor may inquire of the client personnel which of the following questions? a. Are investment records periodically reconciled to actual listing of investments (i.e., per count or investment custodian statement)? b. Is there independent review of investments measured at fair value based on market valuation? c. Is investment income independently recalculated? d. All of the choices
Should auditors provide some level of assurance on the MD&A or other information in annual reports like Non-GAAP, performance indicators or sustainability disclosures?
Which of the following is the least important consideration for a governmental auditor whoneeds to be objective when auditing and reporting on an agency’s achievement of programgoals?a. Measure the actual output results of agency activities.b. Compare the agency’s actual output results to quantitative goal standards.c. Perform a comprehensive review of management controls.d. Determine quantitative standards that describe goals the agency was supposed to achieve.
S1: After conducting an audit and release of the audit report, the primary responsibility on the fairness of the financial statements remains with the management and those charged with governance of the entity. S2: In recurring audits, the auditor may not send a new engagement letter unless warranted by the circumstances. S3: For financial reporting purposes, an entity's risk assessment process includes its identification, analysis, and management of risks relevant to the preparation of financial statements in accordance with applicable financial reporting framework. S4: The risk of material misstatement is broader in scope compared to business risks. S5: Analytical procedures used as substantive test focuses on detecting material misstatements. S6: The responsible party always prepare a representation that will be subjected to the validation of the practitioner. Identify which statements are correct
Numbers, 4,5,6,7,8,9,10 determining risks
Which control activity is the entity implementing when all purchase orders above S5,000 should be authorized by a responsible senior ? Select one a. Adequate documents and records b. Independent checks on performance c. Proper authorization of transactions and activities d. Physical control over assets and records
APPROACH TO AUDITING IN A CIS ENVIRONMENT Skill & Competence Planning Risk Risk Assessments Documentation explain briefly and illustrate example

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Client Name: The Boeing Company Entity and Environment Category: Objectives, Strategies, and Business Risks Year ended:	Completed by:
Reviewed by:
Business Risk Factor	Response	Possible Effect(s) on the Audit
Does the entity set entitywide objectives and are they supported by strategic plans?
Does the entity have clear objectives in terms of a budget, profit, and other financial and operating goals?
Does the entity have an entity risk assessment process that includes estimating the significance of the risks, assessing the likelihood of their occurring, and determining the actions needed to respond to the risks?