rent for a tiny apartment‚ and are on the audit team for one of the leading banks in the U.S. You couldn’t sleep because of the traffic noise last night‚ so you stayed up far too late reading the Committee of Sponsoring Organizations’ (COSO) Internal Control-Integrated Framework and tried to figure out how it relates to your first real audit. “Please sit down‚” Ms. Rise continues. “How has your first month here been? Are you enjoying your first auditing assignment at such a large bank?” “Oh‚ Ms
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reviews; IT infrastructure and improvements needed engagement; project management; and IT internal audit services. If Kudler chooses to use a findings and recommendations audit‚ no opinion will be produced‚ only a summary of the audit for each of the systems (Hunton‚ Bryant‚ & Bagranoff‚ 2004). A SAS 70 audit is generally to provide assurance about the existence and effectiveness of the company’s internal controls around a service provided to others. Kudler is not a service provider. However‚ Kudler
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Audit Planning: Assessment of Control Risk MULTIPLE CHOICE: 1. Which of the following is ordinarily considered a test of internal control procedures? a. Send confirmation letters to banks. b. Count and list cash on hand. c. Examine signatures on checks. d. Obtain or prepare reconciliations of bank accounts as of the balance sheet date. ANSWER: C 2
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Accounting Oversight Board‚ or PCAOB‚ charged with overseeing‚ regulating‚ inspecting and disciplining accounting firms in their roles as auditors of public companies. The act also covers issues such as auditor independence‚ corporate governance‚ internal control assessment‚ and enhanced financial disclosure. Sarbanes–Oxley contains 11 titles that describe specific mandates and requirements for financial reporting. Each title consists of several sections‚ summarized below. 1. Public Company Accounting
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PAPER – 6 : AUDITING AND ASSURANCE QUESTIONS Nature of Auditing 1. (a) Briefly explain the relationship between Auditing and Behavioural Science. (b) “The auditor fails to obtain sufficient information to form an overall opinion on the matters contained in the financial statements.” In the light of the above statement briefly explain the circumstances and opinion expressed by an auditor‚ where he is unable to obtain sufficient audit evidence. 2. Auditors of M/s Santa Banta (P) Ltd
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AUDITING THEORY 8. Which of the following should an auditor do when control risk is assessed at the maximum level? A. Perform fewer substantive tests of details. B. Perform more tests of controls. C. Document the assessment. D. Document the internal control system more extensively. 9. Which of the following is least likely to be a test of a control? A. Inquiries of appropriate personnel. B. Inspection of management’s engagement letter. C. Observation of the application of a policy. D.
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1. A control which relates to all parts of the EDP system is called a(n) a. Systems control c. Applications control b. General control d. Universal control 2. Which of the following is not an output control? a. Proper authorization of transaction b. Control totals c. Check digits d. Adequate documents 3. Should the auditor feel‚ after obtaining an understanding of the EDP internal control structure‚ that control risk cannot
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Auditing Theory 1. A control which relates to all parts of the EDP system is called a(n) a. Systems control c. Applications control b. General control d. Universal control 2. Which of the following is not an output control? a. Proper authorization of transaction b. Control totals c. Check digits d. Adequate documents 3. Should the auditor feel‚ after obtaining an understanding of the EDP internal control structure‚ that control risk cannot be reduced‚ he or she will a. Issue a disclaimer b. Issue
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The Regulator: July‚ 48-51. Lee‚ T. 1994. “Financial Reporting Quality Labels – The Social Construction of the Audit Profession and the Expectations Gap.” Accounting‚ Auditing & Accountability Journal 7 (2): 30-49. Locatelli‚ M. 2002. “Good Internal Controls and Auditor Independence.” CPA Journal 72 (10): October‚ 12-15. Stein‚ R.W. 2003. “Doing Right on Governance.” Best’s Review 103 (12): April‚ 85. Sutton‚ M.H. 2002. “Financial Reporting at a Crossroads.” Accounting Horizons 16 (4): December‚
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LJB COMPANY | Internal Control | REQUIREMENTS AND REVISIONS | Prepared To: LJB Company’s President Prepared By: Yenny Gutierrez6/03/2013 | TABLE OF CONTENTS Introduction New Internal Control Requirement 4 Establishment of responsibility 4 Segregation of duties 4 Documentation procedures 4 Physical controls 4 Independent internal verification 5 Human Resources controls 5 Reviewing LJB Internal Controls 5 Pre numbered invoices 5 Ink machine
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