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What is the auditor's responsibility for communicating control deficiencies that are severe enough to be considered significant deficiencies.
For what purpose should an auditor's understanding of the internal control components be used in planning an audit?
Johnson, CPA, has been engaged to audit the financial statements of Rose, Inc., a publicly held retailing company.
Briefly describe how the complexity of an entity's internal control system affects the use of the various tools.
What specific issues should the internal auditor be concerned about with respect to individual entries?
Describe the factors Cook should consider before applying substantive procedures to General's balance sheet accounts at April 30, 2015.
Assume that Smith determined that the second item was a material weakness. How would the required communication change?
What internal controls should have been implemented or applied to ensure proper controls over the Company's recorded transactions?
The first element in management's process for assessing the effectiveness of internal control is determining which controls should be tested.
How does the auditor evaluate the objectivity and competence of others who perform work for management?
Describe the steps in obtaining an understanding of ICFR using a top-down, riskbased approach.
Describe what is meant when management remediates a material weakness. If a material weakness is remediated and sufficiently tested before the "as of" date.
Under what circumstances would an auditor give an adverse opinion on the effectiveness of an entity's ICFR?
Distinguish between generalized and custom audit software. List the functions that can be performed by generalized audit software.
The auditor should consider audit risk when planning and performing an audit of financial statements in accordance with generally accepted auditing standards.
LVD is a pharmaceutical company that has three successful drugs. They have recently decided to make a public offering of their stock.
Explain how risk of material misstatement should be assessed and what effect that assessment will have on detection risk.
In developing an understanding of the entity and its environment, the auditor can obtain information from numerous sources.
Industry conditions can be a source of business risks for an entity. Describe how each of the industry conditions can result in business risks.
What are the objectives of the "brainstorming" meeting that is held among the engagement team members?
Prepare a list of business risks that NewSkin likely will face as a start-up biotech firm.
Identify the fraud risk factors for misappropriation of assets that were present at Koss Corporation.
Explain why the auditor divides the financial statements into components or segments in order to test management's assertions.
Define audit evidence. Provide an example of evidence from accounting records and other information.
Why is it necessary to obtain corroborating evidence for inquiry and for observation?