Why might the auditor of a nonpublic company choose to omit testing of internal controls?

Question:

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

Step by Step Answer:

Related Book For book-img-for-question

Auditing and Assurance Services Understanding the Integrated Audit

ISBN: 978-0471726340

1st edition

Authors: Karen L. Hooks

See More Books

Question Posted: Jan 21, 2015 10:26 AM

See More Questions

Why might the auditor do an account analysis and vouch selected transactions in income statement accounts such as legal expense, travel and entertainment, and other income/ expenses?
Why might the auditor choose to NOT confirm accounts receivable?
The auditor of a stock brokerage company, Roller Securities Inc., sends out negative confirmations of account details for a sample of about 50% of the stock brokerages customers, selected at random....
1. Should Sandy do exactly what the partner suggests, or risk losing the business for the firm, and perhaps her job, by suggesting a different approach? 2. What might be an alternative approach? 3....
A sample of a gaseous substance at 25oC and 0.862 atm has a density of 2.26 g/L. What is the molecular mass of the substance?
The superintendent of police of Fargo is attempting to predict the costs of operating a fleet of police cars. Among the items of concern are fuel, $.22 per mile, and depreciation, $6,600 per car per...
Why does a use case need a unique, numeric identifier?
Bergamo Bays computer system generated the following trial balance on December 31, 2015. The companys manager knows something is wrong with the trial balance it does not show any balance for work in...
4. An electron (C=1.610-19 C, m =9.11103 kg) is held at a distance of 4.5x10 m from o a fixed charged sphere particle. The electron is released and it accelerates away at 6.5x106 m/s. What is the...
Hotel XYZ is an independent city centre hotel property with 200 rooms. In general its Average Daily rate is approximately 100 throughout the year, and its runs at an average of 65% occupancy. Its...
What is the fundamental difference in the audit purpose and reports for a public and nonpublic company?
Do you think it is necessary to prohibit all of the services on the prohibited services list in order to protect the public interest? Are there any on the list that you would permit, and why?
Kearney, Inc. makes kitchen tools. Company management believes that a new model of coffee grinder would sell well at a price of $66. The company estimates unit materials costs to be $16 for the...
To what extent do private portfolio investments in developing countries benefit the recipient countries? What are the potential costs and risks to both investors and recipients? Explain your answer.
Which statements about the following code are correct? A. It consistently prints 6. B. It consistently prints 7. C. It consistently prints another value. D. It does not consistently print the same...
Which of the following can fill in the blank to have the code print 44? A. Only map B. Only mapToInt C. Only mapToObject. D. Both map and mapToInt E. Both map and mapToObject F. map, mapToInt, and...
Economic growth is said to be a necessary but not sufficient condition to eradicate absolute poverty and reduce inequality. What is the reasoning behind this argument?
What is the significance of the debt service ratio? Can indebted countries do anything to lower this ratio? Explain your answer.
After the following statement executes, what elements will be stored in the myset set? myset = set(10)
Eleni Cabinet Company sold 2,200 cabinets during 2011 at $160 per cabinet. Its beginning inventory on January 1 was 130 cabinets at $56. Purchases made during the year were as follows: February . 225...
Which pair of graphs in Figure P23.82 best represents the capacitor voltage and the current through the torso as a function of time after the switch is closed? A defibrillator is designed to pass a...
When planning a financial statement audit, a CPA must understand audit risk and its components. The firm of Pack & Peck evaluates the risk of material misstatement (RMM) by disaggregating RMM into...
For each of the following situations, explain how risk of material misstatement should be assessed and what effect that assessment will have on detection risk. a. Johnson, Inc., is a fast- growing...
Management fraud (e. g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds (e. g., Enron and WorldCom) can have a significant effect on shareholders,...
Prepare a short report for David on the financial analysis completed. Your report should include: The results of your analysis Your recommendation based on the required rate of return, if the...
Michelle is a 47-year old woman who has not been to see any healthcare provider since the birth of her third child 6 years ago. She is considering making an appointment to discuss medical options for...
The starting salaries of recent graduates and their majors in college were surveyed. Specifically, 300 graduates were included in the survey. You conduct a test to determine whether majors and...

Why might the auditor of a nonpublic company choose to omit testing of internal controls?

Question:

Step by Step Answer:

The auditor of a nonpublic company must understand the companys inf...View the full answer

Auditing and Assurance Services Understanding the Integrated Audit

Students also viewed these Auditing questions