Must the overall understanding of internal control always be followed by assessment and testingphases? Explain.

Q: What are tests of controls? What is the audit team’s goal in performing them in an…

A: Tests of controls: Test of control is performed by the auditor to verify that whether the control…

Q: How do you figure out the balance of control and substantive testing? How does this link into…

A: Substantive testing can be defined as the process of auditing financial statements and obtaining…

Q: Describe the importance of adequate internal controls.

A: Definition:   Internal control: Internal control is a process that ensures continuous reliability fo…

Q: True or false Tests of controls generally consist of combination of procedures such as inquiry of…

A: Auditing is the procedure in which the auditor checks and examines the financial statements of the…

Q: What is the relationship between tests of controls and substantive tests?

A: Audit Planning:   Audit planning is the first step in the auditing process. Auditor gathers all the…

Q: What is the audit team’s objective in obtaining an overall understanding of internal control in…

A: Auditing: The analytical process of evaluating and assessing the accounting information furnished…

Q: For the given scenario, identify the weakness or weaknesses in internal control and opposite the…

A: Internal control is a process, performed by a board of directors of business, management and other…

Q: What is meant by the control environment? What are the factors the auditor must evaluate to…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What is the purpose of testing Internal Controls?

A: Definition:   Tests of controls: Tests of controls form the part of audit procedures to be…

Q: How can analytical procedures be performed in audit planning?

A: Analytical procedures:   Analytical procedure refers to a financial audit procedure that helps an…

Q: What happens when Control Risk is assessed to be at the maximum level?

A: Control risk Control Risk refers to the type of audit risk which evaluates the misstatement of…

Q: Reasonable assurance that the objectives of internal control are achieved depends on the competence…

A: The question is related to Auditing. Resonable assurance means a high level of assurance regarding…

Q: How does control risk affect the nature, timing, and extent of further audit procedures?

A:

Q: performing test of controls,

A: Option a is wrong because the relationship between the assessed level of control risk and…

Q: What role does the audit trail play in terms of configaration?

A: Audit trail is a series of documents, files or other evidence of accounting transaction which are…

Q: What does an auditor's assessment of Detection Risk determine?

A: Detection risk is a component of audit risk. Detection risk is the possibility that a material…

Q: How do management assertions affect the audit?

A: Management assertions are the claims made by the management about the items in the financial…

Q: reporting of control procedures required

A: There are few reasons why control measures are required in reporting. Some of them are as below.

Q: What does Internal Control provide reasonable assurance for?

A: Internal Controls:   Internal controls are the controls established within an organization to check…

Q: What is meant by a “top-down” approach to evaluation of internal controls?

A:

Q: Subject: internal auditing - needs to perform control testing

A: Introduction: Auditors have a wide range of instruments at their disposal while doing an audit for a…

Q: what are the difference between Preventive Controls and Detective Controls?

A: Financial Reporting control activities are imposed on the accounting standard for the purpose of…

Q: Which of the following statements best describes the phrase, “evaluating the design of a control”?…

A: "Evaluating the design of control" means Considering whether the control, individually or in…

Q: Describe how the nature of evidence used to evaluate the controlenvironment differs from the nature…

A:

Q: What is meant by the control environment? What are the factorsthe auditor must evaluate to…

A: Control environment is an internal control environment . It ensures the overall attitude, awareness…

Q: What are the three major phases in the audit team’s evaluation of internal control? How does theuse…

A: Following are the three major phases in the audit team's evaluation of the internal control and the…

Q: Is it necessary to undertake an audit client's internal control evaluation?

A: This question explains about an audit client's internal control evaluation

Q: When a substantive audit strategy is adopted, an auditor will O determine internal controls are…

A: The question is related to Auditing and is of Substantive audit Strategy. Substantive audit Strategy…

Q: what audit determines whether organizational policies are being followed and whether external…

A: A compliance audit is a thorough examination of a company's conformity to regulatory requirements.…

Q: Aside from documenting his/her understanding of the internal control structure, the auditor should…

A: The auditor should  document  in his working papers The understanding  of entity  accounting  and…

Q: ABOUT AUDITING The process of selecting and developing policies and procedures to help mitigate…

A: Audit Risk- Audit risk is the possibility that an auditor will issue an incorrect opinion on…

Q: What are the possible obstacles or hindrance of operational audi

A: The auditor is not expected to, and cannot, reduce audit risk to zero and cannot, therefore, obtain…

Q: What are the primary reasons for conducting an evaluation of an audit client’s internal control?

A: An evaluation of internal control involves an examination of the effectiveness of associate…