52. Which of the following procedures would an auditor most likely perform in planning afinancial statement audit?a.Reviewing investment transactions of the audit period to determine whether relatedparties were created.b.Performing analytical procedures to identify areas that may represent specific risks.c.Reading the minutes of stockholder and director meetings to discover whether anyunusual transactions have occurred.d.Obtaining a written representation letter from the client to emphasize management'sresponsibilities.B – ARPs required during planning53. The ultimate purpose of assessing control risk is to contribute to the auditor's evaluation Show
We have textbook solutions for you!The document you are viewing contains questions related to this textbook. Payroll Accounting 2020 Bieg/Toland Expert Verified The auditor considers the control environment (and its impact on the achievement ofoverall control objectives) in developing an understanding of the internal controlstructure.The auditor performs tests of controls to assess whether specific internal controls areoperating effectively. The auditor should only perform tests of controls if they areidentified as relating to specific assertions.54. When an auditor tests the internal controls of a computerized accounting system, whichof the following is true of the test data approach? Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Why are auditors responsible for evaluating the controls in this process?Auditors are specifically expected to understand controls that address “significant” risks. These are identified and assessed for risks of material misstatement that, in the auditor's professional judgment, require special audit consideration.
How does auditor evaluate internal controls?How Do You Evaluate Internal Controls Deficiencies?. Assess the Control Environment. ... . Evaluate Risk Assessment. ... . Investigate Control Activities. ... . Examine Information and Communication Systems. ... . Analyze Monitoring Activities. ... . Index Existing Controls. ... . Understand which Controls Are Relevant to the Audit.. Which of the following would least likely to be included in an auditor's test of controls?The correct option is (d). There are only four types of auditor's test of control which do not includes analytical procedures. Analytical procedures include analytical observation and reviews which is not considered as a test of controls. Hence, it is a correct option.
Which of the following procedures would an auditor most likely include in planning a financial statement audit?The correct answer is (A.) Make a preliminary judgment about materiality. An auditor is most likely to plan about the materiality of auditing in the planning stage.
Which of the following are types of audit controls?The controls should be designed to detect specific types of errors or irregularities and should be implemented on a consistent basis.. Review of financial statements.. Reconciliation of bank accounts.. Physical inventory count.. Review of aged receivables.. |