Answered: Internal control is intended to provide…

Internal control is intended to provide absolute assurance that an organization will achieve its objective of reliable financial reporting. True False

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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Question 13

Internal control is intended to provide absolute assurance that an organization will achieve its objective of reliable financial reporting.

True

False

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Question 25 When performing an audit of a public company, PCAOB standards do not require the auditor to perform test on internal controls if going straight to substantive audit procedures are more cost effective and provide will sufficient evidence to express an opinion on the financial statements taken as a whole. True False
Question 4 The auditor of a large public company has determined that a material weakness exists in the client's internal controls over financial reporting. Which of the following statements is true? Weakness require an adverse opinion on the financial statements taken as a whole. The auditor should express an adverse opinion on internal controls only if a material misstatement was found in the financial statements. The auditor should express and adverse opinion on internal controls even though no material misstatements were found in the financial statements. The auditor is not required to express an opinion on internal controls.
Briefly discuss the role of the control accounts in the identification of missing figures in the financial statements of organizations ?
Question 8 Rule 201, General Standards, requires a member to comply with standards and interpretations. Which of the following is NOT a standard covered by Rule 201. Sufficient relevant data Due Professional Care Independence Planning & Supervision. 9 ) Which of the following situations would most likely be in conflict with the responsibilities principle? Auditors document their assessment of control risk following their study of internal control. Auditors perform the engagement with the performance level expected of competent auditors. Auditors obtain expertise in their client's industry as they are conducting the audit examination. Auditors are directly involved with a client manager in a strategic decision-making capacity.
Question 29 The most important fundamental component of an entity's internal control is: Effectiveness of operations. People who operate and function within the control system. Reliability of financial reporting. Compliance with applicable laws and regulations.