Statements Internal auditing is an improve an organization's operations. objective assurance and consulting activity designed to add value and An operational audit focuses on the efficiency, effectiveness, and of operations. involves a meeting of the operational auditors and the persons directly concerned with the An operations audited to discuss the audit findings. In an audit in accordance with Government Auditing Standards, the auditors report on the organization's internal control. and on In an audit in accordance with the Single Audit Act, violations of laws and regulations that are estimated to have a material effect on an organization's financial statements are referred to as

Statements Internal auditing is an improve an organization's operations. objective assurance and consulting activity designed to add value and An operational audit focuses on the efficiency, effectiveness, and of operations. involves a meeting of the operational auditors and the persons directly concerned with the An operations audited to discuss the audit findings. In an audit in accordance with Government Auditing Standards, the auditors report on the organization's internal control. and on In an audit in accordance with the Single Audit Act, violations of laws and regulations that are estimated to have a material effect on an organization's financial statements are referred to as

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 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
The AASC is an independent organization responsible for the creation and integration of the 10 Generally Accepted Auditing Standards (GAAS) A. True B. False Intended misstatement of amounts and disclosures on financial reports/statement A. Error B. Management Fraud
The evidence considered most appropriate by auditors is best described asa. Internal documents such as sales invoice copies produced under conditions of stronginternal control.b. Written representations made by the president of the entity.c. Documentary evidence obtained directly from independent external sources.d. Direct personal knowledge obtained through physical observation and mathematicalrecalculation
List of matters normally communicated to those charged with governance includes: a) The overall approach and scope of the audit, including any limitations on the scope of the audit. b) The accounting policies and any changes to them that could materially affect the financial statements. c) Adjustments arising as a result of audit procedures which may not materially impact the financial statements. d) Material events or uncertainties which could jeopardize the going concern status, and which does not require disclosure within the financial statements e) Disagreements with management over accounting treatments or disclosures Any expected modifications to the audit report f) Material weaknesses discovered in the internal systems and controls. All a) , b) , c) , d) , e) and f) Only a) , b) , e) and f) Only a) , b) and c) Only a) , b) , c) and e) Only a) , e) and f)
If the auditor identifies any events or conditions that may cast significant doubt on the entity's ability as a going concern, Auditor shall communicate the same to: Those charged with governance Government Employees Management Which one of the following fraudulent activities constitute misappropriation of assets? 个 Auditing and Cont..pdf 10:38 EN 是小 al T-TI/-V/-o
Which of the following presumptions does NOT relate to the reliability of evidence? A. the more effective the internal control structure, the more assurance it provides about the accounting data and financial statements. B.an auditor's opinion, to be economically useful, is formed within reasonable time and based on evidence obtained at a reasonable cost. C. evidence obtained from independent sourcesoutside the entity is more persuasive than evidence secured solely within the entity. D. the independent auditor's direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly.
What are the major differences between independent auditors’ reports on financial statementsand internal and governmental reports on efficiency, economy, and program results audits?
What is meant by internal control based on the professional standards of a public accountant is:a. A process carried out by the Board of Directors and the Board of Commissioners which is designed to provide adequate assurance about the reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable laws.b. A process carried out by the Board of Commissioners, management and other personnel of the entity that is designed to provide reasonable assurance about the reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable laws.c. A process carried out by all members of the internal audit department of a company to detect errors in the processes run by the companyd. B and C are correcte. All wrong