Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Question
Chapter 21, Problem 34QRA
a.
To determine
Explain internal auditing.
b.
To determine
Explain three possible benefits of an internal audit department’s program to educate auditees and other parties about the nature and purpose of internal auditing.
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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
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…
Auditing. Please use own sentences
Chapter 21 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 21 - Prob. 1RQCh. 21 - Prob. 2RQCh. 21 - Prob. 3RQCh. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - Prob. 6RQCh. 21 - Prob. 7RQCh. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQ
Ch. 21 - Prob. 11RQCh. 21 - Prob. 12RQCh. 21 - Prob. 13RQCh. 21 - Prob. 14RQCh. 21 - Prob. 15RQCh. 21 - Prob. 16RQCh. 21 - Prob. 17RQCh. 21 - Prob. 18RQCh. 21 - Prob. 19RQCh. 21 - Prob. 20RQCh. 21 - Prob. 21RQCh. 21 - Prob. 22RQCh. 21 - Prob. 23RQCh. 21 - Prob. 24RQCh. 21 - Prob. 25RQCh. 21 - Prob. 26RQCh. 21 - Prob. 27RQCh. 21 - Prob. 28RQCh. 21 - Prob. 29RQCh. 21 - Explain how major federal assistance programs are...Ch. 21 - Describe what is meant by a questioned cost.Ch. 21 - Distinguish between a subrecipient and a primary...Ch. 21 - Prob. 33RQCh. 21 - Prob. 34QRACh. 21 - Steve Ankenbrandt, president of Beeb Corp., has...Ch. 21 - Prob. 36QRACh. 21 - Prob. 37QRACh. 21 - Prob. 38QRACh. 21 - Prob. 39QRACh. 21 - Prob. 40QRACh. 21 - Prob. 41QRACh. 21 - Prob. 42QRACh. 21 - Prob. 43AOQCh. 21 - Prob. 43BOQCh. 21 - Prob. 43COQCh. 21 - Prob. 43DOQCh. 21 - Prob. 43EOQCh. 21 - Prob. 43FOQCh. 21 - Prob. 43GOQCh. 21 - Prob. 43HOQCh. 21 - Prob. 43IOQCh. 21 - Prob. 43JOQCh. 21 - Prob. 43KOQCh. 21 - Prob. 43LOQCh. 21 - Prob. 44OQCh. 21 - Prob. 45OQCh. 21 - Prob. 46PCh. 21 - Devry Corporation has established an independent...Ch. 21 - Prob. 48PCh. 21 - Prob. 49PCh. 21 - Prob. 50ITC
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Similar questions
- Answer the below: What do you understand by attestation services? Discuss the responsibility and functions of CPA. Why independent Auditors' Reports are usually required? What type of information usually discussed in this report?arrow_forwardThe audit process may be divided up into four phases. At which phase would the auditor normally evaluate the integrity of management and consider ethical requirements? Select one: a. Conduct the audit. b. Plan the audit. c. Pre-engagement d. complete the auditarrow_forwardWhen conducting an audit, business risk must be considered.a) Define business risk in the context of an audit and outline various potential sources of risk.b) What is the relationship between business risk and the audit's preliminary analytical procedures?c) When preparing an audit engagement, there are four key areas to consider, each with its own set of sub-areas. Please indicate the four primary regions as well as the relevant sub-parts.arrow_forward
- The audit process is the sequence of different activities involved in an audit. Identify the phase in the audit that is captured by this primary objective: 1. To assess and evaluate the quality of services delivered by the engagement team. * 2. To assess the different risks associated with the audit to determine the nature, timing and extent of further audit procedures necessary to be performed. * 3. To assist the auditor in assessing conclusion reached whether it is consistent with evidence gathered. * Pre-engagement Audit planning Consideration of internal controls Evidence-gathering (substantive testing) Completing the audit Issuance of the audit report Post-audit responsibilitiesarrow_forwardWhich of the following is the major purpose of performing analytical procedures in internal audits? a. To perform additional audit procedures. b. To plan the audit engagement. c. To obtain audit evidence. d. To study relationships among elements of information.arrow_forwardWrite a comprehensive research paper on on internal controls and internal auditing. Clearly Defining what is meant by internal control, Distinguishing among the major components of a client’s internal control: the control environment, risk assessment, control activities, the accounting information system, and monitoring of controls. And lastly, Describing the auditors' consideration of internal control.arrow_forward
- Using your selected objective, create an audit plan of the organization's financial statements that address the following, with support each with appropriate auditing standards. 1. Business Risks 2. Management Assertions 3. Audit Risk 4. Internal control and effect on audit proceduresarrow_forwardCritically appraise the Internal Audit function of the company. Add information about the internal audit team and suggestions given by the internal audit unit to enhance the internal control system of the company.arrow_forwardAuditors’ understanding of the internal control in an entity provides information fora. Determining whether members of the audit team have the required competence and capabilities to perform the audit.b. Ascertaining the independence in mental attitude of members of the audit team.c. Planning the professional development courses the audit staff needs to keep up to datewith new auditing standards.d. Planning the nature, timing, and extent of substantive procedures on an auditarrow_forward
- d. Internal auditing is also known as operational auditing. e. BIR auditing is also known as compliance auditing. f. The internal auditor is directly concerned with the detection and prevention of fraud.arrow_forwardIn establishing the overall audit strategy, the auditor shall: 1. Identify the characteristics of the engagement that define its scope 2. Ascertain the nature, timing and extent of resources necessary to perform the engagement 3. Ascertain the reporting objective of the engagement to plan the timing of the audit and the naturé of the communication required 4. Consider the factors that, in the auditor's professional judgement are significant in directing the engagement team. 1, 2,3 and 4 3 only 1, 2 and 3 only 1 and 2 only Which one of the following fraudulent activity is an appropriate example for misappropriation of assets? Auditing and C EN 4 小 llarrow_forwardAudit planning is a vital area of the audit primarily conducted at the beginning of audit process to ensure that appropriate attention is devoted to important areas, potential problems are promptly identified, work is completed expeditiously and work is properly coordinated. Required: b. Describe sources of relevant information for understanding a client's business.arrow_forward
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