EBK AUDITING & ASSURANCE SERVICES: A SY
EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Chapter 3, Problem 3.18MCQ
To determine

Concept Introduction:

Internal audit is an examination of the internal controls of the organization. The internal audit is performed by the internal auditor to check the existence and operating effectiveness of the internal controls.

To choose: The factors that an auditor should use to assess the internal auditor

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Auditors’ 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 audit
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…
While planning an assurance engagement, the internal auditor obtains knowledge about the auditee’s operations to, among other things: Make constructive suggestions to management regarding internal control improvements Develop an attitude of professional skepticism concerning management’s assertions Evaluate whether misstatements in the auditee’s performance reports should be communicated to senior management and the audit committee Develop an understanding of the auditee’s objectives, risks, and controls
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