Auditing & Assurance Services: A Systematic Approach (Irwin Accounting)
10th Edition
ISBN: 9780077732509
Author: William F Messier Jr, Steven M. Glover Associate Professor, Douglas F. Prawitt Associate Professor
Publisher: McGraw-Hill Education
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Question
Chapter 7, Problem 7.4RQ
To determine
Concept Introduction:
The risk of misstatement in the financial statements are tested by how strong internal controls does an entity has. If the internal controls are highly strict the risk of misstatements are low and if the internal controls are not strict but are loose then the risk of misstatements are high. The higher the misstatement the higher the number of entity’s units to be tested and on the other side, lower the misstatement risk, lower the number of entity’s units to be tested.
To discuss: Decisions of locations or business units to test to be taken by management and the auditor.
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Chapter 7 Solutions
Auditing & Assurance Services: A Systematic Approach (Irwin Accounting)
Ch. 7 - Prob. 7.1RQCh. 7 - Prob. 7.2RQCh. 7 - Prob. 7.3RQCh. 7 - Prob. 7.4RQCh. 7 - Prob. 7.5RQCh. 7 - Prob. 7.6RQCh. 7 - Prob. 7.7RQCh. 7 - Prob. 7.8RQCh. 7 - Prob. 7.9RQCh. 7 - Prob. 7.10RQ
Ch. 7 - Prob. 7.11RQCh. 7 - Prob. 7.12RQCh. 7 - Prob. 7.13RQCh. 7 - Prob. 7.14RQCh. 7 - Prob. 7.15RQCh. 7 - Prob. 7.16RQCh. 7 - Prob. 7.17RQCh. 7 - Prob. 7.18RQCh. 7 - Prob. 7.19MCQCh. 7 - Prob. 7.20MCQCh. 7 - Prob. 7.21MCQCh. 7 - Prob. 7.22MCQCh. 7 - Prob. 7.23MCQCh. 7 - Prob. 7.24MCQCh. 7 - Prob. 7.25MCQCh. 7 - Prob. 7.26MCQCh. 7 - Prob. 7.27MCQCh. 7 - Prob. 7.28MCQCh. 7 - Prob. 7.29MCQCh. 7 - Prob. 7.30MCQCh. 7 - Prob. 7.31MCQCh. 7 - Prob. 7.32MCQCh. 7 - Prob. 7.33MCQCh. 7 - Prob. 7.34PCh. 7 - Prob. 7.35PCh. 7 - Prob. 7.36PCh. 7 - Prob. 7.37PCh. 7 - Prob. 7.38PCh. 7 - Prob. 7.39PCh. 7 - Prob. 7.40PCh. 7 - Prob. 7.41PCh. 7 - Prob. 7.42PCh. 7 - Prob. 7.43PCh. 7 - Prob. 7.44PCh. 7 - Prob. 7.45P
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- An examination of part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit Select one: a. compliance audit b. operational audit c. financial statement audit d. production auditarrow_forwardExplain the process of completing the field work of auditor?arrow_forwardIdentify the type of evidence the auditor would gather in assessing the integrity of management? What are the sources of each type of evidence?arrow_forward
- List three reasons management may ask for an operational audit to be performed, and explain how the audit program would be impacted by each of them.arrow_forwardSelect one method an auditor can use to audit through the computer system. Explain how the method works, any risks associated with the method, and how you would justify using the method from a cost-benefit perspective.arrow_forwarddistinguish efficiency and effectiveness in operation audit performed by an internal auditorarrow_forward
- An Information Systems (IS) Audit primarily focuses on evaluating: OA. The physical security of the organization's premises OB. The controls over automated information processing systems ○ C. The marketing strategies of the organization OD. The economic conditions impacting the organizationarrow_forwardEvaluate the value of the internal audit function to an organization's overall performance.arrow_forwardDiscuss the auditor's risk assessment procedures for assessing control risk, and provide specific procedures related to understanding management's risk assessment component of internal control.arrow_forward
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