Situation E: Controls Satisfying management assertions: Sales and Shipping ticket satisfy completeness and existence/occurrence and valuation. There are no controls that satisfy any management assertions for Invoice, Sale and AR general ledger. The controls that are in place are performed by the same person who performs the process. ✓ [Choose ] Rank 4 (2nd Highest Risk) Rank 2 (2nd Lowest Risk) Rank 5 (Highest Risk) Rank 3 (Middle Risk) Rank 1 (Lowest Risk)

Situation E: Controls Satisfying management assertions: Sales and Shipping ticket satisfy completeness and existence/occurrence and valuation. There are no controls that satisfy any management assertions for Invoice, Sale and AR general ledger. The controls that are in place are performed by the same person who performs the process. ✓ [Choose ] Rank 4 (2nd Highest Risk) Rank 2 (2nd Lowest Risk) Rank 5 (Highest Risk) Rank 3 (Middle Risk) Rank 1 (Lowest Risk)

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

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

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

Chapter7: Planning The Audit: Identifying, And Responding To The Risk Of Material Misstatement

Section: Chapter Questions

Problem 21MCQ

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3. Risk registers would normally detail which of the following: (Select all that apply.) A. Risk level before controls are implemented B. Risk lével after controls are implemented C. Responsibility for managing risks D. The total cost of a control being implemented Answer: Page 3 of 11 ted States) E Focus МacВook Pro
Question 1 Which of these would be a reason for adopting a predominantly substantive approach? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Accounts are affected by more than one transaction class Detection risk has been assessed as high C There are no significant control procedures that pertain to the assertion Control risk has been assessed as low b d
Situation D: Controls satisfying managemen assertions: Sales Order does not have a control that satisfies the management assertion of Existence/ Occurrence. Shipping Ticket is missing a control to satisfy completeness management assertion. The other processes have a control or more than one control so that all the management assertions are met for that process. A compensating control exists at the AR GL process for missing controls at the Sales Order and Shipping Ticket processes. Each process with a control has at least one preventive control. Each control is done by someone other than the person who performs the related process. ✓ [Choose ] Rank 4 (2nd Highest Risk) Rank 2 (2nd Lowest Risk) Rank 5 (Highest Risk) Rank 3 (Middle Risk) Rank 1 (Lowest Risk)
Assertion Associations. Exhibit 7.64.1 contains an arrangement of examples of transaction errors (lettered a–g) and a set of client control procedures and devices (numbered 1–15).Required:For each error/control objective, identify the assertion about classes of transactions and events most benefited by the control.
13.4 Match the threats in the left column to appropriate control procedures in the right col- umn. More than one control may be applicable. Threat Control Procedure 1. Failing to take available purchase discounts for prompt payment a. Accept only deliveries for which an ap- proved purchase order exists. b. Document all transfers of inventory. 2 Recording and posting eIrors in accounts payable 3. Paying for items not c. Restrict physical access to inventory. received 4. Kickbacks d. File invoices by due date. 5. Theft of inventory e. Maintain a cash budget.
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Refer to the system flowchart labeled Problem 4.Requireda. Discuss the uncontrolled risks associated with the systems as currently configured. b. Describe the controls that need to be implemented into the system to mitigate the risks in thegiven scenario.
An internal control system where obligations by the company should be liquidated only by checks. A. Voucher system B. Current account c. Check system d. Outstanding check
E7-3 The following control procedures are used in Keaton Company for over-the-counter cash receipts. 1. Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer. 3. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked brief- case in the stock room until it is deposited in the bank. 4. At the end of each day, the total receipts are counted by the cashier on duty and rec- onciled to the cash register total. 5. The company accountant makes the bank deposit and then records the day's receipts. i o br 00
Discuss how EDI dealing with sensitive information, such as inventory amounts and price data, is no longer private. What potential dangers exist if proper controls are not in place? Give an example
Further audit procedures include: Risk assessment procedures Tests of controls A. B. فن فة Yes Yes Yes No C. No Yes D. No No
Consider each situation separately Identify the missing internal control procedure from these characteristics •Assignment of responsibilities •Separation of duties •Audits Electronic devices ⚫ Other controls (specify) (Click the icon to view the situations.) (Leave the "Reason for "Other" control column blank if "Other controls" is not selected for the "Internal Control Procedure" co a. While reviewing the records of Quality Pharmacy, you find that the same employee orders merchandise and approves invoices for payment b. Business is slow at Amazing Amusement Park on Tuesday, Wednesday, and Thursday nights To reduce expenses, the business decides not to use a ticket taker on those nights. The ticket seller (cashier) is told to keep the tickets as a record of the number sold c. The same trusted employee has served as cashier for 12 years d. When business is brisk, Fast Mart deposits cash in the bank several times during the day. The manager at one store wants to reduce the time employees…