When processing controls within the accounting information system may not leave visible evidence that could be inspected by audit teams, the teams shoulda. Make corroborative inquiries.b. Observe the separation of duties of personnel.c. Review transactions submitted for processing and compare them to related output.d. Review the run manual.

When processing controls within the accounting information system may not leave visible evidence that could be inspected by audit teams, the teams shoulda. Make corroborative inquiries.b. Observe the separation of duties of personnel.c. Review transactions submitted for processing and compare them to related output.d. Review the run manual.

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

Chapter6: Audit Evidence

Section: Chapter Questions

Problem 20RQSC

See similar textbooks

Related questions

Q: Evaluating data reliability is a critical part of the audit process. Explain the differences among…

A: Reliability of data in an audit environment refers to the extent to which the data are usable for…

Q: Which of the following is a common monitoring control? Multiple Choice O audit committee inquiries…

A: Internal controls are the rules and procedures implemented by a company to ensure compliance with…

Q: 1. Explain how client internal controls can be improved through the proper installation of IT. 2.…

A: Implementation of Access Controls: IT systems can enforce strict access controls, ensuring that only…

Q: From an IT audit perspective, Business Continuity Plan (BCP) completeness reflects the current state…

A: Evaluating a Business Continuity Plan's (BCP) completeness is a crucial component of an IT audit.…

Q: Evaluating data reliability is a critical part of the audit process. Explain the differences among…

A: Answer:- Audit:- The systematic review of a company's financial statements is known as an audit. An…

Q: The revenue cycle requires regular review. Identify at least two types of misstatements found in the…

A: The objective of this question is to identify two types of misstatements that can occur in 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: ll statements are true B. all statements are false C. S1 and S2 are true D. S1 and S3 are true

A: Correct option : A

Q: Which of the following is not a common procedure for assessing operating effectiveness of preventive…

A: Preventive controls is a measure of safeguards implemented by an organisation to proactively…

Q: Indicate the primary audit objective for the following audit procedure: Determine whether sales…

A: Auditing is the process of examining financial statements, records, and other financial information…

Q: Controls that enhance the accuracy and reliability of the accounting records are automated…

A: Accounting control is the manner in which process are configured to. Manage risk within an…

Q: ider “control environment.” Why it is important for auditors to understand a client’s control…

A: A controlled environment refers to the term "Internal control environment" which implies that the…

Q: What form of internal control documentation will an auditor likely use when they are not personally…

A: An Auditor is the person qualified as a Chartered Accountant who takes care of Audit.

Q: An auditor looks at purchase orders to ensure the appropriate client personnel have approved the…

A: According to the question given, we need to select the correct option from the options given.Test of…

Q: "In order to determine whether internal control operated effectively to minimize errors of failure…

A: Internal control is a procedure that is aimed to offer reasonable confidence that information is…

Q: A key internal control over the acquisition cycle is to ensure that the company requires recording…

A: Solution: A key internal control over the acquisition cycle is to ensure that the company requires…

Q: Select the appropriate control activities for each of the following definitions. Definitions Control…

A: a. Physical control

Q: Describe the steps that auditors use to test controls over sales and collections. Please provide…

A: Auditors are professionals who are trained to evaluate and review financial records and activities…

Q: Which assertion is most likely being tested when an auditor vouches transactions from the sales…

A: In auditing and financial reporting, an assertion refers to a representation or statement made by…

Q: Grounds for Dismissal. This case is designed like the ones in the chapter. Your assignment is to…

Q: Which internal control methodology provided below would be the best solution to resolve the…

A: Iess chances of frauds if there exists a proper internal control system exists with In the entity…

Q: Audit teams use the test data method to gain certain assurances with respect toa. Input data.b.…

A: Under test data method, auditor submits dummy data into the system of the client. This is done to…

Question

When processing controls within the accounting information system may not leave visible evidence that could be inspected by audit teams, the teams should
a. Make corroborative inquiries.
b. Observe the separation of duties of personnel.
c. Review transactions submitted for processing and compare them to related output.
d. Review the run manual.

Definition Definition Structural system an enterprise uses to collect, store, report, retrieve, and process financial data. Accounting information systems are used by business analysts, auditors, accountants, and consultants for accurate and efficient access to financial data.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Management's Assessment of Internal Control

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Of the following types of audit evidence, which is themost persuasive?Select one: a. Prenumbered client purchase order forms. b. Client representation letter. c. Client work sheets supporting cost allocations. d. Bank statements obtained from the client.
An audit trail is a step-by-step record by which accounting data can be traced to its source. Therefore, Vouching is used primarily to test which of the following assertions about classes of transaction? Select one: a.Accuracy. b.Completeness. c. Cut-off d. Occurrence
A system that traces the detailed transactions relating to any item in an accounting record could be define as an audit trail. Therefore, Tracing is used primarily to test which of the following assertions about classes of transactions? Select one: a. Valuation and Allocation. b. Accuracy. c. Existence. d. Completeness
Which of the following is a device designed to help the audit team obtain evidence about theaccounting and control activities of an audit client?a. A narrative memorandum describing the control system.b. An internal control questionnaire.c. A flowchart of the documents and procedures used by the company.d. All of the above
Which of the following types of evidence would an auditor most likely examine to determine whether internal control is operating as designed?Select one: a. Client records documenting the use of computer programs. b. Gross margin information regarding the client’s industry. c. Confirmations of receivables verifying account balances. d. Anticipated results documented in budgets or forecasts.
List the transaction-related audit objectives for the audit of salestransactions. For each objective, state one internal control that the client can use toreduce the likelihood of misstatements
1. Please answer ASAP!!
Please choose the best answer. Thanks!
Which of the following tests of controls is most useful in assessing the transaction-related audit objective related to completeness? Attempt to input transactions with valid and invalid vendors. Account for sequence of vouchers and ensure that the vouchers prenumbered. Examine supporting documents for indication of approval. Examine documents in voucher package for occurrence.
A key internal control over the acquisition cycle is to ensure that the company requires recording transactions at correct quantities and amounts. This satisfies the transaction-related audit objective of: timing. completeness. accuracy. occurrence.
Obtaining an understanding of the internal control structure is required for first time audit client, but not necessary for recurring clients. TRUE OR FALSE? WHY?
Assume that your audit partner has asked you to design detailed substantive testingprograms for the accounts receivable and sales; inventory; purchases and accountspayable; and payroll systems of Square Pharma. Your partner also asked you toincorporate all or some of the following types of tests: Specific analytical procedures,tests of detail (i.e. direct tests on balances and tests of transactions of a balance).While designing the testing programs, assume that the Tests of Control identifythe weaknesses as described in each of the following situations, but no other. Insummary:(a)Consider the control weaknesses for each subsystem as set out below; (b)Design and develop a substantive audit tests program using information fromlast three year annual reports and explain and justify your audit program in termsof audit objectives (also called 'audit assertions' )Note: The risk situations below are created for purposes of teaching and bear norelationship to events in Briscoe Group Ltd or any…