Which of the following best describes the operational audit?(1) It requires constant review by internal auditors of the administrative controls asthey relate to the operations of the company.(2) It concentrates on implementing financial and accounting controls in a newlyorganized company.(3) It attempts and is designed to verify the fair presentation of a company’s resultsof operations.(4) It concentrates on seeking aspects of operations in which waste would be reducedby the introduction of controls

Q: Auditing Sales/Revenue Transactions When an auditor needs to obtain an understanding of the overall…

A: Management Assertions: For financial records and disclosures to be accurate and suitable, assertions…

Q: the following tests of controls were designed to allow the auditor to determine if the company’s…

A: Auditing - To determine the accuracy and dependability of information, audit is undertaken. The main…

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: S1: Non-assurance engagements include agreed-upon procedures, management consulting, and review of a…

A: Each statement shall be independently evaluated under the audit practices and framework.

Q: Which of the following statements relating to accounting and auditing is incorrect? i) Accounting…

A:

Q: Auditing Sales/Revenue Transactions When an auditor needs to obtain an understanding of the overall…

A: Management is the management of an institution, whether it be a corporation, a semi, or a federal…

Q: Which of the following control objectives in the General Ledger activities under the…

A: R2R is a Finance and Accounting (F&A) management process that entails gathering, analysing, and…

Q: type of the auditors

A: Audit of internal controls is done to ensure whether control function regarding each transaction is…

Q: It is a primary environment of a company to engage in the audit process in an effective manner. This…

A: Independent auditor plan, reports as well as conduct the outcome of the audit under GAAS ( Generally…

Q: The internal audit, which is a tool to evaluate the working of each management function, It refers…

A: Internal audit: Internal Audit is a department or a corporation of individuals within a corporation…

Q: The auditor shall communicate with those charged with governance an overall approach and scope of…

A: The auditor shall communicate with those charged with governance an overall approach and scope of…

Q: audit engagement

A: Statement 1 is correct because an audit engagement is opinion based. The auditor conducts the…

Q: Which of the following matters most likely would be included in a management representation letter…

A: A letter from a company's management to the auditor is known as a management representation letter.…

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: 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: ss risk and the audit's preliminary analytical procedures? c) When preparing an audit engagement,…

A: Business Risk associated with Audit: A business risk is an occurrence, incident, or condition that…

Q: Internal audit aims to conduct systematic scrutiny of records. Internal audit is described as…

A:

Q: internal controls

A: Internal controls are the set of operational policies and procedures implemented in an organization…

Q: The PCAOB issues audit practice alerts to highlight new, emerging, or otherwise noteworthy…

A: The on-site verification activity of a process or quality system, such as inspection or examination,…

Q: Which of the following audit types is designed to add value and improve the organization's…

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

Q: A service organizations has an auditor issue one of two types of reports on their operations: 1)…

A: Service organization It is organization which have not started for the sole purpose of making…

Q: Comment on the effectiveness of this organizational structur

A: Internal Audit: Internal audit is the process by which organization assures the compliance of rules…

Q: In this section, we will discuss the numerous alternatives for putting an internal audit function…

A: The following are the many alternatives for efficiently placing an internal audit function within a…

Q: In the Management Report contained in the audited annual report, managemerit acknowledges its…

A: Audited Annual Report is a comprehensive financial document that an organization produces on a…

Q: The internal audit risk assessment process:

A: It refers to the systematic and recurring process for evaluating and identifying events that affect…

Q: Distinguish management’s responsibility from the audit committee’s responsibility for designing and…

A: Anti-fraud programs and controls depict the actions taken by the management to prevent and mitigate…

Q: Significant deficiencies in internal control are required to be reported a. Management of the unit…

A: A deficiency in internal control exists when the design or operation of a control does not allow…

Q: 3. Which of the following is NOT part of the control activities applicable to Financial Statement…

A: Solution Concept Financial statement audit                 During the audit of the financial…

Q: nternal control should be designed to provide reasonable assurance that       a. Management’s…

A: Auditing refers to the procedure of evaluating and analyzing the books of accounts prepared and…

Q: Distinguish the auditor’s responsibility for testing controlsin an integrated audit of a public…

A: Test of controls is a procedure of audit that is used to test the effectiveness of the control of an…

Q: Obtaining an understanding of internal control requires the auditor to reach a conclusion about the…

A: Ans.  Let us analyze the statements separately. Statement 1 says that obtaining an understanding of…

Q: Which of the following is not an implication of PCAOB Auditing Standard No. 5 and Section 404 of the…

A: It is a process implemented by organizations to provide reasonable assurance of achieving their…

Q: When completing the audit of internal controls for a public company, AS 2201 requires auditors to…

A:

Q: What types of audit procedures are typically performed in testing operating effectiveness of…

A: Test of Controls: The test of controls includes the procedures that are developed to generate…

Q: Business risk must be assessed in performing an audit. a) Define business risk in association…

A: Business Risk associated with Audit: A business risk is an occurrence, incident, or condition that…