AUDITING RMU
11th Edition
ISBN: 9781260934830
Author: MESSIER
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 6, Problem 6.15MCQ
To determine
Introduction:COSO is defined as committee of Sponsoring Organization of the Treadway Commission.
COSO Internal Control is defined as a process designed and effected by entity’s management and board of directors to ensure that objectives related to reporting are achieved and provide reasonable assurance. It helps the organization to mitigate the risks.
COSO’s monitoring guidelines include two fundamental principals:
- Ongoing and/or separate evaluation to determine whether components of internal control continue to operate over time or not
- Internal Control deficiencies are identified and communicated in a timely manner so that corrective action can be taken.
To define: COSO Internal Control Integrated Framework Monitoring
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Students have asked these similar questions
Consider “control environment.” Why it is important for auditors to understand a client’s control environment. What are some limitations of internal controls?
Now consider “segregation of duties.” Determine why it is important in an IT environment. What are some advantages of using IT and audit software when conducting an audit?
Explain why managers who outsource their IT function may or may not also outsource responsibility for IT controls. What options are open to auditors regarding expressing an opinion on the adequacy of internal controls?
Choose the one correct answer.
Internal control provides reasonable assurance means that ?
internal control has its inherent limitations
internal control is integrated in the various transaction cycles
internal control involves every people in the organization
evaluation of internal control is only a secondary objective of FS audit
Chapter 6 Solutions
AUDITING RMU
Ch. 6 - Prob. 6.1RQCh. 6 - Prob. 6.2RQCh. 6 - Prob. 6.3RQCh. 6 - Prob. 6.4RQCh. 6 - Prob. 6.5RQCh. 6 - Prob. 6.6RQCh. 6 - Prob. 6.7RQCh. 6 - Prob. 6.8RQCh. 6 - Prob. 6.9RQCh. 6 - Prob. 6.10RQ
Ch. 6 - Prob. 6.11RQCh. 6 - Prob. 6.12MCQCh. 6 - Prob. 6.13MCQCh. 6 - Prob. 6.14MCQCh. 6 - Prob. 6.15MCQCh. 6 - Prob. 6.16MCQCh. 6 - Prob. 6.17MCQCh. 6 - Prob. 6.18MCQCh. 6 - Prob. 6.19MCQCh. 6 - Prob. 6.20MCQCh. 6 - Prob. 6.21MCQCh. 6 - Prob. 6.22MCQCh. 6 - Prob. 6.23MCQCh. 6 - Prob. 6.24MCQCh. 6 - Prob. 6.25PCh. 6 - Prob. 6.26PCh. 6 - Prob. 6.27PCh. 6 - Prob. 6.28PCh. 6 - Prob. 6.29PCh. 6 - Prob. 6.30PCh. 6 - Prob. 6.31P
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Similar questions
- 1. Standards requires auditors obtain an understanding of an organization’s control environment. Discuss two techniques that may be used to obtain such understanding. PLease answer this thank you:)arrow_forwardA service organizations has an auditor issue one of two types of reports on their operations: 1) Type 1 and 2) Type 2. Which of the following is true? Type 2 Report describes and assess the design of the internal controls and also provides assurance about the operating effectiveness Type 2 report only provide assurance on the operating effectiveness of the service organization's controls. Type 1 report provide assurance on the operating effectiveness of the service organization's controls Type 2 does not describes and assess the design of the internal controls 0000arrow_forwardWhich of the following are common issues with benchmarking tool used by internal auditors? Benchmarking need face-to-face contact or discussion with other organizations O Benchmarking information is often proprietary and organizations are reluctant to share it with other organizations. Benchmarking can show areas of excellence within the organization but internal audits should focus on exception-based reporting O Typical metrics used in benchmarking are time, quality, and costarrow_forward
- Is an organization’s internal audit function part of its system of internal controls? If your answer is yes, explain how the internal audit function can evaluate the design adequacy and operating effectiveness of internal controls and at the same time remain independent of the organization’s system of internal controls. If your answer is no, explain the internal audit function’s role relative to the organization’s system of internal controls.arrow_forwardAn 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 of the following is not a scope of internal auditors? Efficient Use of Resources Services to whole organization Objectives and goals achievement Compliance with Policies and Proceduresarrow_forward
- Why do we consider risk assessment the foundation of the internal audit function? To safeguard independence, many internal audit departments continue to perform risk assessments in a silo, without collaborating with and leveraging the work of ERM. Do you agree with this approach?arrow_forwardWhen an auditor tests the internal controls of a computerized accounting system, which of the following is true of the test data approach? A. Test data are coded to a dummy subsidiary so they can be extracted from the system under actual operating conditions. B. Test data programs need NOT be tailor-made by the auditor for each client's computer applications. C. Test data programs usually consist of all possible valid and invalid conditions reguarding compliance with internal controls. D. Test data are processed with the client's computer and the results are compared with the auditor's predetermined results.arrow_forwardConsider the “control environment.” Asses why it is important for auditors to understand a client’s control environment. What are some limitations of internal controls?arrow_forward
- Prior to SOX, external auditors were required to be familiar with the client organization’s internal controls, but not test them. Explain.arrow_forward1). Basic Audit skill requires knowledge of internal control. It is not the responsibility of an auditor to put internal controls in place but auditors have the responsibility of providing information to management on the effectiveness and operation of internal control systems. Required: i) What is internal control ii) Describe TWO categories of internal control objectives and TWO components of internal controlarrow_forwardWhich of the following is a common monitoring control? Multiple Choice audit committee inquiries of internal and external auditors Osegregation of duties O client generates reports with information used by management Omanagement establishes a "tone at the top" environmentarrow_forward
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