respond to the following questions: Section 404 of the Sarbanes-Oxley Act of 2002 includes two sections. Describe those sections. Identify management’s four overall responsibilities with respect to internal control over fi nancialreporting that arise due to the Securities and Exchange Commission’s implementation ofthe Sarbanes-Oxley Act of 2002. What information must be included in management’s report on internal control over fi nancialreporting in the annual report fi led with the Securities and Exchange Commission? Describe the difference between a signifi cant defi ciency and a material weakness in internalcontrol. Comment on the accuracy of the following statement: “Since both signifi cant defi ciencies andmaterial weaknesses must be reported to the audit committee, for practical purposes, there isno distinction between the two.” What is meant by the “as of ” date when reporting on internal control over fi nancial reporting? What is a compensating control? Provide examples of antifraud programs that the auditors might expect the client to have. Describe what is meant by a “walk-through.” Must walk-throughs be performed during auditsof internal control over fi nancial reporting? May the client perform a walk-through and theauditors then review the client’s work? While performing a walk-through, auditors ordinarily make certain inquiries of employees. Provide three examples of such inquiries.

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance

Section: Chapter Questions

Problem 24CYBK

Related questions

Question

respond to the following questions:

Section 404 of the Sarbanes-Oxley Act of 2002 includes two sections. Describe those sections.
Identify management’s four overall responsibilities with respect to internal control over fi nancial
reporting that arise due to the Securities and Exchange Commission’s implementation of
the Sarbanes-Oxley Act of 2002.
What information must be included in management’s report on internal control over fi nancial
reporting in the annual report fi led with the Securities and Exchange Commission?
Describe the difference between a signifi cant defi ciency and a material weakness in internal
control.
Comment on the accuracy of the following statement: “Since both signifi cant defi ciencies and
material weaknesses must be reported to the audit committee, for practical purposes, there is
no distinction between the two.”
What is meant by the “as of ” date when reporting on internal control over fi nancial reporting?
What is a compensating control?
Provide examples of antifraud programs that the auditors might expect the client to have.
Describe what is meant by a “walk-through.” Must walk-throughs be performed during audits
of internal control over fi nancial reporting? May the client perform a walk-through and the
auditors then review the client’s work?
While performing a walk-through, auditors ordinarily make certain inquiries of employees. Provide three examples of such inquiries.