What does it mean the audit documentation should be self-explanatory? O a. It shall be sufficient to enable management to understand the internal control O b. It shall be sufficient to enable employee to understand the internal control O c lt shall be sufficient to enable an experienced auditor to understand the audit procedures O d. It shall be sufficient to enable auditor to understand the engagement letter

What does it mean the audit documentation should be self-explanatory? O a. It shall be sufficient to enable management to understand the internal control O b. It shall be sufficient to enable employee to understand the internal control O c lt shall be sufficient to enable an experienced auditor to understand the audit procedures O d. It shall be sufficient to enable auditor to understand the engagement letter

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

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

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

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 38CYBK

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What does it mean the audit documentation should be self-explanatory? O a. It shall be sufficient to enable management to understand the internal control O b. It shall be sufficient to enable employee to understand the internal control O c It shall be sufficient to enable an experienced auditor to understand the audit procedures O d. It shall be sufficient to enable auditor to understand the engagement letter
The user auditor is required to obtain a sufficient understanding of the nature and significance of the services provided by the service organisation and their effect on the user entities internal control relevant to the audit. From which source(s) might this understanding be obtained? A) the user entity B) a type 1 service auditors report C) a type 2 service auditors report D) all of the above answers
The use of an audit engagement letter is the best method of assuring the auditor will have which of the following?Select one: a. Cooperation from other auditors b. Auditor will obtain sufficient appropriate audit evidence. c. Access to all books, accounts and vouchers required for audit purpose d. Management representation letter
The Performance Principle in AICPA auditing standards requires the auditor to obtain a sufficient understanding of the entity and its environment, including its internal control. Why is it important to understand the client’s business and how does the auditor gain an understanding of the client’s business?
Identify how each of the following statements relates to the performance principle by considering which element(s) of the principle are related to that statement. (A statement may be related to more than one element.) Use the following elements in providing your response: Reasonable assurance • Planning and supervision • Materiality ⚫ Risk assessment • Audit evidence a. Evaluating the effectiveness of the client's internal control in preventing or detecting misstatements. b. Obtaining an understanding of the client's business and industry. c. Acknowledging that the risk of failing to detect a material misstatement cannot be reduced to zero. d. Obtaining confirmations from the client's customers as to the ending balances in accounts receivable. e. Preparing a written audit plan. f. Designing audit procedures to identify misstatements that would have a significant effect on financial statement users' decisions. g. Considering the likelihood that the account balance contains a material…
When establishing an understanding with an audit client, that understanding should be documented Group of answer choices: a. Through a management representation letter. b. In a manner completely based on the auditor’s seasoned professional judgment. c. Either orally or in writing with the client. d. Through use of an engagement letter.
Describe what is meant by an audit procedure. Why is it importantfor audit procedures to be carefully worded?
Which of the following documents or/ and procedures should be used by the auditor to gain a better understanding of the client ? 1 .Discussion with management 2. Communications with certain entities working in the same industry sector 3. Predecessor auditor assessment of the internal control 4. All answers are correct
A document which the auditor receives from client ,but which was prepared by someone outside the client's organization is an ?