Which of the following is driving the need for assurance maps? a. Risk managers. Incorrect. b. Board members. c. Internal auditors. d. Compliance practitioners.
Q: 4. Overall risk management arrangements are the main preoccupation of the internal auditor who is…
A: Answer 4: Correct option is A. i.e. Similarity.
Q: policies and procedures О vacation policy О development of control activities information technology
A: Internal Control System-Internal controls are accounting and auditing processes used in a company's…
Q: irector of the client. B. An auditor acts as an advocate on behalf o
A: Here in the given MCQ, the option C & D are self interest threats. (whereas other two options…
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: What are the five types of tests auditors use to determine whether financial statements are fairly…
A: The auditor needs to test the financial statement for collecting sufficient and appropriate audit…
Q: Which of the following activities should the internal audit function NOT be involved in? a.…
A: Lets understand the meaning of internal audit here. Internal audit is a auditing design for the…
Q: Accounting & Finance - Auditing Question 5: Discuss the audit expectation gap. Your answer should…
A: The expectation gap is the dissimilarity among the actual and real roles and responsibilities of…
Q: An auditor's primary consideration regarding an entity's internal controls is whether they a.…
A: In most cases, those responsible for putting up a company's financial statements will rely on five…
Q: high for all financial statements assertions, an auditor should document the auditor’s A B…
A: An Auditor understanding of its environment, it's entity and then assessing the risk of material in…
Q: 1: What problems do you see when an auditor relies extensively on management’s representations on…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: For the company, United Therapeutics, which specific accounts should the auditors identify for…
A: United therapeutics is biological company and is listed on NASDAQ stock exchange. It designs and…
Q: Which of the following is not required by generally accepted auditing standards?a. Written…
A: Generally accepted auditing standards (GAAS): These are defined as the set of general principles and…
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: Inherent risk Select one: a. All of the others are correct. b. Involves auditors attaining…
A: An inaccuracy or omission in a financial statement that is not caused by a breakdown in internal…
Q: With respect to an audit, which of the following is not a risk assessment procedure? Analytical…
A: Risk assessment procedureThe risk assessment procedure is one of the audit procedures which are…
Q: Which statement is false
A: Meaning of Internal control The process designed, implemented and maintained by those charge with…
Q: An auditor’s preliminary control risk assessment is at a high level. Which of the following are…
A: Solution Explanation - The preliminary assessment of control risk is the process of evaluating the…
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: The primary purpose for obtaining an understanding of a nonpublic audit client’s internal control is…
A: Generally accepted auditing standards (GAAS): These are defined as the set of general principles and…
Q: Performance Principle. Identify how each of the following statements relates to the performance…
A: Performance Principle The guiding principle known as the performance principle defines the general…
Q: What possible actions would an auditor might take if a client’s financial statements depart from…
A: Introduction: A set of financial statements summarizes a company's monetary results, financial…
Q: The acceptable audit risk for the financial statements overall tends to be low and is set by the…
A: In auditing, setting the acceptable audit risk for financial statements is crucial for ensuring 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: 8 Answer is not complete. a. Evaluating the effectiveness of the client's internal control in…
A: Risk Assessment: The client’s internal control is evaluated to get the effectiveness of it. It is…
Q: hich of the following statements is incorrect? Select one : a. Internal auditors provide assurance…
A: The auditor needs to know the financial information of the company in which he is being engaged as…
Q: Must all observations identified by an internal audit team during an assurance engagement be acted…
A: Internal auditing is an unbiased, impartial assurance and consultation process intended to enhance…
Q: Analytical procedures used when planning an audit should concentrate ona. Weaknesses in the…
A: Analytical procedures are used by the auditors to analyze the accounts and transactions of the…
Q: Risk assessment procedures include
A: The first statement is false because the risk assessment procedures are the audit procedures to…
Q: Which of the following does not accurately summarize auditors’ requirements regarding internal…
A:
Q: audit risk.
A: First option is wrong because the inherent risk is the risk of material misstatements that may exist…
Q: It refers to the risks that a material misstatement will even occur, that it would not be prevented…
A: Note: As per our guidelines, we will solve the first question. The risk created by a financial…
Q: Which must the auditor communicate to management? A. B. C. D. Known Material Weaknesses Yes Yes No…
A: The written communication should be made prior to the issuance of the auditor's report on internal…
Q: d. Internal auditing is also known as operational auditing. e. BIR auditing is also known as…
A: Internal Auditing is also Known as Operational auditing Answer: TRUE Reason : Operational Check…
Q: Which of the following audit techniques would most likely provide an auditor with the least…
A: Effective Internal control will satisfy company objectives. Internal controls will identify and…
Q: Vhich of the following factors do NOT impact the auditor's decision O overall risk assessment for…
A: Substantive procedures are to verify the completeness and accuracy of the statements. These are done…
Q: an audit firm is giving advice on accounting or control systems and helping the client with…
A: In the given case option C is correct.. Since it is neither a intimidation Threat nor a self review…
Q: 4. Overall risk management arrangements are the main preoccupation of the internal auditor who is…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: Which of the following is NOT a requirement in management’s report on the effectiveness of internal…
A:
Q: O te O ris
A: Inherent risk is the risk posed by an error or omission in a financial statement due to a factor…
Q: If the Financial Statements are prepared do not achieve fair presentation, then an auditor shall O…
A: An audit is defined as the examination of financial statements in order to check whether or not the…
Q: Why is Responsibility Accounting necessary and how is it implemented? 2) Determination of control…
A: Responsibility accounting is a system for accumulating and reporting financial information about the…
Q: When gathering data, an audit team identified both subjective and objective criteria for measuring…
A: Audit risk is the risk that auditor may give inappropriate opinion when financial statements are…
Q: The audit risk model includes the four risks listed below. Match the type of risk with the related…
A: Audit risk is the risk that financial statements are material misstatement and audit opinion states…
Q: Assessment of audit risk is carried out by the auditor at this stage of the audit process: a. Audit…
A: Audit risk: It can be defined as the risk that the entity’s financial statements are significantly…
Which of the following is driving the need for assurance
maps?
a. Risk managers.
Incorrect.
b. Board members.
c. Internal auditors.
d. Compliance practitioners.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Which of the following are true regarding internal auditors and the adequacy of an organization's risk management process I. Internal auditors must understand the risk assessment process and the tools used to make the assessment II. Internal auditors should determine the level'of risks acceptable to the organization III. Internal auditors need to be satisfied that the key objectives of risk management processes are being met IV. Internal auditors should evaluate management's risk processes the same way they analyze risk when planning an engagement O , II, III and IV O None of the choices OI, Il and III only O l and II only O l and III onlyWho has primary responsibility for overseeing the establishment, implementation, and evaluation of risk management and controls? I Operating managers. B) Internal auditors. External auditors. Senior managementDetermine whether statement 1 and 2 are true or false 5. S1 -Objectives are the overall plans for the entity, while strategies are the operational approaches by which managements intends to achieve its objectives S2- Not all controls are relevant to the auditor’s risk assessment a. False, False b. True, False c. False, True d. True, True
- 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…Professional skepticism is a. An attitude that includes a questioning mind. b. The auditor's application of relevant training, knowledge and experience. c. One of the professional code of ethics. d. Not necessary in auditing of the entity.Which of the following is considered different and more limited in objectives than theothers?a. Operational auditing.b. Performance auditing.c. Management auditing.d. Financial statement auditing
- Which of the following accurately describes a characteristic of a management letter? Select all that apply. written on the auditor's letterhead O addressed to management or those charged with governance O reports internal control weaknesses O includes documentation of materiality and the audit plan O signed by managementAn auditor is likely to use procedures to support the operating effectiveness of internal controls. Which of the following would generally not be used ? Select one : O a. Re -perform client procedures O b. Examine documents , records, and reports O c. Make inquiries of appropriate client personnel O d. Analytical proceduresWhy is there a need on the part of the client entity to monitor internal controls over time? a. Because the auditor needs to obtain understanding of internal control b. Because unmonitored controls tend to deteriorate over time c. Because it will affect the timing of substantive audit procedures d. Because it is a requirement of the applicable financial reporting framework
- Audit evidence is more persuasive when : A_Information is provided by the board of directors of the company B_ The audit team comprises of high quality personnel C_ Audit evidence is inconsistent with that from another D_ Items of evidence from different sources or of a different nature are consistent14. Which of the following tasks that the auditor may perform in relation to Risk Management without any reservation? Group of answer choices Facilitating identification and evaluation of risks Setting the risk appetite Giving assurance on the risk management process and provide recommendation Taking accountability for risk managementWhich of the following is NOT an element of an assurance engagement? A. Audit assertion B. Responsible party C. Suitable criteria D. Independent auditor
