a.
Introduction: Auditing means the inspection of financial accounts of the company to determine if the records are accurate as per the rules and regulations of accounting or not. There are two types of auditors, i.e., internal auditors and external auditors, that carry out the
To state: The difference between confidential and privileged information.
b.
Introduction: Auditing means the inspection of financial accounts of the company to determine if the records are accurate as per the rules and regulations of accounting or not. There are two types of auditors, i.e., internal auditors and external auditors, that carry out the auditing process.
To state:The circumstances under which the external auditor can disclose the confidential information of a client.
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Auditing: A Risk Based-Approach to Conducting a Quality Audit
- An 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 proceduresarrow_forwardWhich one of the following is not an advantage of internal controls? Select one: a. It safeguards the assets b. It increases the chance of fraud c. It ensures compliance with laws d. It enhances the reliability of accounting recordsarrow_forwardWhich ethical principle is violated by an auditor who discloses information for personal gain? a. Confidentiality b. Objectivity c. Competency d. Integrityarrow_forward
- Internal control is designed to provide: : A Certainty. B Freedom from fraud. C Reasonable assurance. D Truth.arrow_forwardAn important responsibility of the external auditor is the establishment and maintenance of internal control on an ongoing basis. * TRUE FALSEarrow_forwardObtaining an understanding of the internal control structure is required for first time audit client, but not necessary for recurring clients. TRUE OR FALSE? WHY?arrow_forward
- Describe a checks an balance scenario that allows for whistleblowing and prevents retaliation to the informant?arrow_forwardWhich of the following is a possible safeguard implemented by the client that might mitigate an audit independence threat?arrow_forwardd. 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_forward
- This is a process of evaluating the effectiveness of a client's internal controls in preventing or detecting material misstatements in the financial statements is called __________________ (answer in All CAPS)arrow_forwardWhat controls should be employed to avoid breaches into an accountijg information system.arrow_forwardIs it necessary for an auditor to get a knowledge of a client's internal controls if the auditor does not plan to depend on the client's internal controls in the course of the audit? Explain.arrow_forward
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