If all of a company’s ITGC are effective except its contingency controls, would the auditor be able to conclude that the ICFR is effective? What if other controls are lacking but contingency controls are effective? How would the auditor modify plans for the financial statement audit if the conclusion in the ICFR audit is that many general controls are lacking but contingency controls are consistently effective?
Answer to relevant QuestionsIf the head of the IT department and the CFO have complete access to all aspects of the IT system and the ability to input, change and delete transactions, is this a weakness in ICFR? If so, how important is it? Would this ...While performing tests of controls for the cash-in-vault account ($50,000 total as of the Balance Sheet date) of P-Town Hotel, you realize that – contrary to the company’s written controls description and your earlier ...Kim is a senior auditor at Wing CPA firm. She is in charge of formulating the audit plan for several key controls and accounts. Her manager has determined that if the account is misstated by $20,000 the misstatement is ...Use the audit risk model as a framework to explain the following independent situations and to decide if the auditor’s conclusion is appropriate.Jan Morris, CPA, is finishing an audit of Night Time Manufacturing and ...What components of risk are independent of the audit? Which components may be set by the auditor? What is the basis for setting them? Which components are estimated? Which component may be calculated based on the others?
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