It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc. To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

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Answer 1

Question

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

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43 -ACC-121-71: CH 04 HW-X Question 7 - CH 04 HW - Exercise X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fcon vo Support L Lenovo McAfee Dashboard | Piedm... Information System... My Shelf | Brytewav... My Shelf | Bryteway... Exercises & Problems Saved Help Sa Scribners Corporation produces fine papers in three production departments-Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and spooled onto reels. The company uses the weighted-average method in its process costing system. Data for March for the Drying Department…

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Answer 2

Question

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

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Answer 3

Question

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

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Answer 4

Question

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

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Answer 5

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

Answer 6

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

Answer 7

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Answer 8

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 7 - Prob. 7.1RQ Ch. 7 - Prob. 7.2RQ Ch. 7 - Prob. 7.3RQ Ch. 7 - Prob. 7.4RQ Ch. 7 - Prob. 7.5RQ Ch. 7 - Prob. 7.6RQ Ch. 7 - Prob. 7.7RQ Ch. 7 - Prob. 7.8RQ Ch. 7 - Prob. 7.9RQ Ch. 7 - Prob. 7.10RQ

Explanation of Solution

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