Statement 1: The proper functioning of a bank's authorization controls is particularly important in respect of transactions entered into at or near the date of the financial statements from an audit perspective. Statement 2: The overall responsibility for the system of internal control in a bank rests with the Audit Committee and the Internal Audit Department. a.) Only Statement 1 is true b.) Only Statement 2 is true c.) Both statements are true d.) Both statements are false

Q: Choose an alternative which is not the external source of audit evidence. a. Confirmation from…

A: External Evidence are audit evidences that originate outside the client’s organization. These…

Q: Which financial item of a bank is audited when the auditor pays particular attention to establishing…

A: During the audit, auditor should perform procedures to obatian reasonable assurance about the item…

Q: Why do organizations have policies regarding the use of assets and why do staff need to be aware of…

A: 1. Why do organizations have policies regarding the use of assets, and why do staff need to be aware…

Q: 20. Below is an internal control associated with some financial statement audit cycle that the…

A: Internal controls are the procedures, rules and system which is established by the company to…

Q: bank reconciliation should be prepared periodically because Select one: A. the bank has not…

A: There are two type of balances for cash in the business. One is cash balance as per cash book and…

Q: Independent auditors perform audits on the financial reports of public companies. This type of…

A:

Q: Explain 5 audit procedures in obtaining evidence to test the management assertion for bank.

A: The company should audit its book of accounts before filing the financial statements. The audit is…

Q: From the following statements, identify the statement/s that will not participate in the audit of an…

A: Bank Reconciliation Statement The purpose of preparing the bank reconciliation statement to know the…

Q: Bank reconciliation only involves comparing the organization's cash account with the bank statement,…

A: A corporation creates a bank reconciliation statement (BRS) to make sure the balance of its recorded…

Q: There are three internal control objectives and they are to safeguard the company's reputation,…

A: The correct option is false as internal control has an objective to ensure financial reports with…

Q: At Carlson Services, the cashier collects checks and cash from customers, and the junior accountant…

A: Internal control procedures are a set of policies and practices implemented by an organization to…

Q: nich of the following is not stated as a primary objective of a company's internal control policies…

A: Internal control is an organization is designed and implemented by management.

Q: Determine what are some of the risk assessment procedures to be made in order for the auditor to…

A: Auditing is the process of supervision made by the external person or internal employee in the…

Q: 2. Which technique would be most effective and efficient for testing the operating effectiveness of…

A: The bank reconciliation statement is the statement that is prepared to rectify the errors between…

Q: Answer the following questions:   Identify the basic concepts of an accounting information system…

A: Accounting Information System:-it is a system that helps in tracking all accounting information and…

Q: Tests of controls in a GAAS audit are required fora. Obtaining evidence about the financial…

A: Formal criteria used by auditors when carrying out audits of corporate financial reports are a…

Q: Attached is an audit working paper prepared by a new staff auditor based on his testing of a…

A: Auditor while performing his duties for conducting an audit prepares some documents, file work and…

Q: Why is it needed to have special audit consideration in the audit of banks?

A: Special considerations in audits are needed to check for any irregularities in the practices of the…

Q: plain the responsibilities of both management and auditors with regard to the prevention and…

A: 1. Following measure the Auditor’s responsibilities here:Obtain affordable assurance that the…

Q: Prevention and detection of fraud is the primary responsibility of: a. The Management b. The…

A: Prevention and detection of fraud is necessary to provide financial statement free of material…

Q: An effective risk management system in banks is generally the same as other industries. It requires…

A: Risk Management System Risk Management system which requires the details of which are highlighted…

Q: Which of the following statements relating to internal and external auditors is correct? i. Internal…

A: Auditing is a process of examining the financial statements and internal control system of an…

Q: Items a through frepresent the items that an auditor ordinarily would find on a client-prepared bank…

A: Bank Reconciliation Statement is a statement document that reconciles the difference in the cash…

Q: paring the bank reconciliation. 2. Examine vendors’ invoices and other s

A: The auditors verify the fairness of financial statements by collecting audit evidence by following…

Q: Cash, Fraud, and Internal Control   Main objectives   To apply an understanding of internal…

A: 1. Who is the best person in Dr. Conrad's office to reconcile the bank statement?The best person to…

Q: Which of the following procedures would most likely be performed during planning?a. Surprise…

A: Identifying related parties would most likely be performed during planning.

Q: Describe TWO (2) substantive testing procedures an auditor could employ to verify each of the…

A: i. Revenue and Accounts Receivable: 1. Analytical Review: The auditor would examine the changes in…

Q: Out of 6 principles of internal control activities (i establishment of responsibility, ii.…

A: Internal Control system It is important for the business entity which has strong internal control…

Q: Which control activity is the entity implementing when credit and debt memorandums are prenumbered…

A: Control activities helps in assuring that necessary actions are taken to address risks to the…

Q: Internal controls are crucial to ensuring that financial transactions are authorized and company…

A: Internal controls are the policies, procedures, and mechanisms implemented by an organization to…

Q: udit reports of banks.

A: Today, a lot of risks are associated with the banking sector. The banking sector is trying to reduce…

Q: secondarily responsible for prevention and detection of frauds

A: Option a is wrong because management is primarily responsible for prevention and detection of fraud.…

Q: ISA 240 the Auditor’s responsibilities relating to Fraud in an audit of financial statements,…

A: Part (i): The purpose is what distinguishes fraud from error. In s imple terms, fraud is a…

Q: Discuss the audit considerations arising from a bank’s extensive dependence on technology-based…

A: Audit consideration is the considerations which have to be done by the auditor on the financial…

Q: Counting cash and verifying bank reconciliation are basic substantive procedures and are not…

A: Counting cash and verifying bank reconciliation are basic substantive procedures andsame ia required…

Q: Which of the following is NOT a purpose of an audit of financial statements? a.To express an opinion…

A: Introduction:- The main purpose of audit on entity financial statements to express an opinion as to…

Q: 1. Auditors use substantive

A: Planned detection risk is the risk that audit evidence will fail to detect misstatements…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.