Question: Johnson, CPA, has been engaged to audit the financial statements of Rose, Inc., a publicly held retailing company. Before assessing control risk, Johnson is required

Johnson, CPA, has been engaged to audit the financial statements of Rose, Inc., a publicly held retailing company. Before assessing control risk, Johnson is required to obtain an understanding of Rose’s control environment.

Required:

a. Identify additional control environment factors (excluding the factors illustrated in the following example) that set the tone of an organization, influencing the control consciousness of its people.

b. For each control environment factor identified in part (a), describe the components and why each component would be of interest to the auditor. Use the following format:

Step by Step Solution

★★★★★

3.47 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The control environment factors that establish enhance or mitigate the effectiveness of specific controls and their components are Communication and Enforcement of Integrity and Ethical Values The eff... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

331-B-A-A-A-N (306).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Phung, CPA, has been engaged to audit the financial statements of Vernon Distributors, Inc., a continuing audit client, for the year ended September 30. After obtaining an understanding of Vernon's...

Phung, CPA, has been engaged to audit the financial statements of Vernon distributors, inc., a continuing audit client, for the year ended September 30. After obtaining an understanding of Vernons...

Phung, CPA, has been engaged to audit the financial statements of Vernon Distributors, Inc., a continuing audit client, for the year ended September 30. After obtaining an understanding of Vernons...

Who is ultimately responsible for the implementation of cost - effective internal control? a . The director of internal auditing b . The chief executive officer c . The information systems audit...

Smith, CPA, has been engaged to audit the financial statements of Reed, Inc., a publicly held retailing company. Before assessing control risk Smith is required to obtain an understanding of Reed s...

Johnson, CPA, has been engaged to audit the financial statements of Rose, Inc., a publicly held retailing company. Before assessing control risk, Johnson is required to obtain an understanding of...

6 - 2 6 Johnson, CPA, has been engaged to audit the financial statements of Rose, Inc., a publicly held retailing company. Before assessing control risk. Johnson is required to obtain an...

Johnson, CPA, has been engaged to audit the financial statements of Rose, Inc., a publicly held retailing company. Before assessing control risk, Johnson is required to obtain an understanding of...

Chapter 06 Problem 6-26 LO 6-5, 6-6 Johnson, CPA, has been engaged to audit the financial statements of Rose, Incorporated, a publicly held retailing company. Before assessing control risk, Johnson...

Johnson, CPA, has been engaged to audit the financial statements of Rose, Incorporated, a publicly held retailing company. Before assessing control risk, Johnson is required to obtain an...

Which blood phenotypes (A, B, AB, and/or O) provide an unambiguous genotype? Is it possible for a couple to produce a family of children with all four blood types? If so, what would the genotypes of...

What does the Automotive leasing cost of revenue measure?

2 . Retainer fee. A law firm received a retainer of $ 1 0 , 0 0 0 on July 1 , 2 0 1 0 , from a client. In return, it agreed to furnish general legal advice upon request for one year. In addition, the...

The following are the job cost related accounts for the law firm of Colaw Associates and their manufacturing equivalents: Law Firm Accounts Manufacturing Firm Accounts Supplies ............... Raw...

Tierney Company begins operations on April 1. Information from job cost sheets shows the following. Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June....

Think about a job that youve held in which you felt very low levels of psychological empowerment. What could the organization have done to increase empowerment levels?

Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $300,000 for the year, and machine usage is estimated at 125,000 hours....

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500. During May,...

9. What methods do currency forecasters use to predict future changes in exchange rates?

List the key segregation of duties in the human resource management process. What errors or fraud can occur if such duties are not segregated?

Discuss the two control environment factors that an auditor should consider when examining the human resource management process.

What are the key authorization points in a payroll system?

Global Toys. Inc imposes a payback cutoff of three years for its international investment projects Assume the company has the following two projects available Requirement 1: What is the payback...

A portfolio comprises Coke (beta of 1.5) and Wal-Mart (beta of 0.9). The amount invested in Coke is $20,000 and in Wal-Mart is $20,000. What is the beta of the portfolio? O A. 1.1 OB. 1.32 O C. 1.2...

show all steps please CHAPTER 11 In the presence of flotation costs, use the net proceeds in place of the market price Net Proceeds = Sale Price (1 Flotation cost % or Sale Price $ Flotation Costs...