Which of the following information should a successor auditor obtain during the inquiry of the predecessor auditor before accepting engagement? i) Information about integrity of management ii) Disagreement with management concerning auditing procedures iii) Review of internal control system.iv) Organisation structure a) (i) and (ii) b) (ii) and (iii) c) (i) , (ii) and (iii) d) i) and (iii)
- Which of the following information should a successor auditor obtain during the inquiry of the predecessor auditor before accepting engagement? i) Information about integrity of management ii) Disagreement with management concerning
auditing procedures iii) Review of internal control system.iv) Organisation structure a) (i) and (ii) b) (ii) and (iii) c) (i) , (ii) and (iii) d) i) and (iii) - The audit engagement letter, generally, should include a reference to each of the following except
a)limitations of auditing
b)responsibilities of management with respect to audit work
c)expectation of receiving a written management representation letter.
d)a description of the auditor’s method of sample selection.
3. An auditor who accepts an audit but does not possess the industry expertise of the business entity should
a) engage experts
b)obtain knowledge of matters that relate to the nature of entity’s business
c)inform management about it
d)take help of other auditors
4. What are analytical procedures?
a)Substantive tests designed to assess control risk
b)Substantive tests designed to evaluate the validity of management’s representation letter
c)Substantive tests designed to study relationships between financial and non-
financial
d)All of the above
Comment; We’ll answer the first question since the exact one wasn’t specified. Please submit a new question specifying the one you’d like answered.
Internal Control
Internal controls are the systems, guidelines, and practices that a business uses to guarantee the accuracy of its financial and accounting data, foster accountability, and thwart fraud.
Internal controls can help increase operational efficiency by enhancing the accuracy and timeliness of financial reporting, in addition to helping organizations comply with laws and regulations and stop employees from stealing property or committing fraud.
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