Explain why the auditor must study and evaluate the system of internal control and test its effectiveness

Question:

Explain why the auditor must study and evaluate the system of internal control and test its effectiveness as a part of the ordinary audit.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Applications Of Statistical Sampling To Auditing

ISBN: 9780130391568

1st Edition

Authors: Alvin A. Arens, James K. Loebbecke

See More Books

Question Posted: May 16, 2024 02:02 AM

See More Questions

Grambing Manufacturing Co. is engaged in the manufacture of Product Xs small, nonfunctional devices designed for the mass market. The company produces approximately 2,000 varieties of Xs, which it...
Multiple Choice 1. An independent audit aids in the communication of economic data because the audit a. Confirms the exact accuracy of managements financial representations. b. Lends credibility to...
Multiple- Choice 1. The Sarbanes- Oxley Act of 2002 requires management to include a report on the effectiveness of ICFR in the entitys annual report. It also requires auditors to report on the...
On April 15, 2020, Barrow Technology sold 2,000 shares of BrownCorporation stock for $45,000. As part of the sale, Barrow paid6%in brokerage fees. When Barrow purchased the shares, it paid $25per 2...
Why would management be interested in the revision of probabilities?
What three macroeconomic data series are of particular interest to macroeconomists? Why?
Explain why extrapolation may lead to unreliable results.
Ethical Issue: Discuss the ethics of the indirect pattern of organization. Is it manipulative to delay the presentation of the main idea in a message?
The side-by-side boxplots show the cumulative college GPAs for sophomores, juniors and seniors taking an intro stats course in Autumn 2013. 4.5 Cumulative GPA 4.25 3.75 3.5 3.25 3 2.75 Cumulative...
Explain what is meant by a dual-purpose test. Give an example of one.
List and describe the major ways the auditor obtains an understanding of a client and its business. How does the auditors understanding of the client and its business affect the conduct of the audit ?
The latest weather report includes the following statement: The temperature is 78F, barometric pressure is 29.9 inches, and the relative humidity is 87%. From this information, estimate the mole...
The Role of Leadership in Shaping Organizational Culture Recent research stated that [c]ompanies with an established organizational culture that includes strong capabilities for change, commitment to...
Unscheduled absences by clerical and production workers are an important cost in many companies. Reducing the rate of absenteeism is, therefore, an important goal for a company's human relations...
Many of the largest tech firms, including Google, Apple, Amazon, and Microsoft, have spent hundreds of millions of dollars to improve their information technology infrastructure. Now, these companies...
In the business sense, a product refers to a commodity available for purchase, encompassing both services and tangible or intangible items. It may exist in physical, virtual, or cyber forms. Every...
Data Exploration and Multiple Linear Regression (MLR) using SAS. The "College" data set contains the statistics for many US Colleges from 1995 issue of US News and World Report. It has 777...
Describe the steps in obtaining an understanding of ICFR using a top- down, risk- based approach.
Kenneth Hubbard has prepared the following list of statements about managerial accounting and financial accounting. 1. Financial accounting focuses on providing information to internal users. 2....
Sandhill Co. developed its annual manufacturing overhead budget for its master budget for 2022 as follows: Expected annual operating capacity 122,100 Direct Labor Hours Variable overhead costs...
Clara is setting up a retirement fund, and she plans on depositing $5.000 per year in an investment that will pay 7%5 annual interest. How long will it take her to reach her retirement goal of...
7. Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch. 2,940 ounces of grape...

Explain why the auditor must study and evaluate the system of internal control and test its effectiveness

Question:

Step by Step Answer:

The auditor must study and evaluate the system of internal control and test its effectiveness as a part of the ordinary audit for several reasons 1 Reliance on Internal Controls Internal controls are ...View the full answer

Applications Of Statistical Sampling To Auditing

Students also viewed these Business questions