If 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 situation have any impact on the audit procedures of the financial statement audit? Given the positions these individuals hold, how might their authority and activities be changed to enhance the control environment while still permitting them to do their jobs?
Answer to relevant QuestionsAS 2, paragraph 11 defines preventive controls as having, “.the objective of preventing errors or fraud from occurring in the first place that could result in a misstatement of the financial statements.” Detective ...C. Ronaldo is an auditor working on the ICFR audit for the Manchester Corporation. Interest expense is an account that could produce a material misstatement on the financial statements, so it is tested in the ICFR audit. ...Gloria is a new hire at a local accounting firm. She is given the task of performing a control test on the ICFR portion of the integrated audit for one of her firm’s larger clients. Gloria conducts her test and finds no ...How does the way a control failure is defined affect the audit evidence that is needed?Why do audit work papers need to be indexed and cross referenced? Why do auditors need to use tick marks?
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