Tests of controls in a GAAS audit are required fora. Obtaining evidence about the financial statement assertions.b. Accomplishing control over the occurrence of recorded transactions.c. Applying analytical procedures to financial statement balances.d. Obtaining evidence about the operating effectiveness of client control activitie

Q: Risk assessment procedures are performed by auditors to: a. detect material misstatements in the…

A: The risk assessment procedures include test of control, substantive procedures and assessment…

Q: Internal auditors are responsible for:   A) Issuing a certification report on the internal…

A: Internal Control: The process by which an organization develops the rules and regulations for the…

Q: To test the operating effectiveness of a control, an audit team might use a combination ofeach of…

A: Internal control: It can be defined as a system that includes the policies, rules, and procedures…

Q: TRUE OR FALSE? WHY? For purposes of examining the client's financial statements, the auditor is…

A: Solution Concept Internal control               Internal control is the process laid down by the…

Q: A tool used by auditors that serves as a cue to guiding audit planning  around management’s…

A: Auditor is an individual approved to audit and confirm the exactness of monetary records and…

Q: During an audit, the internal auditor should consider the following factor(s) in determining the…

A: Audit procedures are the techniques, processes, and methods that auditors use to obtain reliable…

Q: State the relationship between the confirmation of accountsreceivable and the results of the tests…

A: Auditor performs these two test understand the efficiency of control systems, policies and…

Q: auditor obtains sufficient understanding of the internal control structure

A: Auditing is done to verify whether the underlying financial statements show true and fair view of…

Q: Required: When evaluating internal control design effectiveness during the internal control over…

A: Types of Financial Statement Assertions:Existence/Occurrence: This assertion confirms that assets,…

Q: When performing an audit, which of the following is a primary objective of obtaining an…

A: Obtaining an understanding of the entity and its environment, including internal control, is a…

Q: An auditor is required to obtain sufficient understanding of each component of an entity’s internal…

A: As part of the audit planning process, an auditor needs to obtain a sufficient understanding of the…

Q: Identify the correct order of steps for an auditor when applying a top-down approach to select…

A: The top-down approach is used to detect risks in the internal controls and gain an overall…

Q: The auditor should assess control risk for each relevant assertion by evaluating the evidence…

A: Relevant assertion: The assertion that shows the possibility of happening a material misstatement is…

Q: When planning the audit of internal controls for an issuer, the audit team shoulda. Identify…

A: Internal control is a mechanism or procedure that the company implements so that the integrity of…

Q: Analytical procedures issued in the planning stage of an audit, generally_______ Select one:   a.…

A: The question is asking about the purpose of analytical procedures in the planning stage of an audit.…

Q: When auditing related party transactions, an auditor places primary emphasis on O A. B. C. D.…

A: Assessing and reducing the risks of significant misstatement resulting from transactions and…

Q: describe the objective of audits of fi nancial statements, the types of audit reports, and…

A: The main objective of a financial report audit is to enable auditors to re-examine the financial…

Q: Why deos the auditor obtain an understanding of the clients business, enviroment and related risk of…

A: Obtaining an understanding of the client’s business is key to an effective and efficient audit.…