Answered: The internal auditing staff of a large…

The internal auditing staff of a large corporation usually reports to a committee of the board of directors, to a member of the top management group, or both.

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter1: The Information System: An Accountant’s Perspective

Section: Chapter Questions

Problem 11DQ

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The internal auditing staff of a large corporation usually reports to a committee of the board of directors, to a member of the top management group, or
both.
True or False
True
False

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The external auditor of a company has certain requirements due to Sarbanes-Oxley. Which of the following best describes these requirements? A. The auditor is required to only report weaknesses in the internal control design of the company he or she is auditing. B. The auditor must issue an internal control report on the evaluation of internal controls overseen by the Public Company Accounting Oversight Board C. The auditor in charge can serve for a period of only two years. D. The Public Company Accounting Oversight Board reviews reports submitted by the auditors when no evaluations have been performed.
Which of the following is true of the Audit Committee? O It is composed of a group of stockholders. O It includes both the internal auditors and the external auditors of a company. It is the group that conducts the audit of a company. Its main purpose is to report errors on the company's financial statements to the SEC. It is another term for the internal auditing department of a company.
Which of the following statements is correct? A.The external auditor is responsible for the preperation of a company's financial statements. B.Audit commitees are now compulsory for the top 500 companies C.An audit commitee may be responsible for reviewing policies on internal control procedures D.Corporate governance can provide assurances that management is accountable for the actions
An audit committee isa. Composed of internal auditors.b. Composed of members of the audit team.c. Composed of members of a company’s board of directors who are not involved in theday-to-day operations of the company.d. A committee composed of persons not associating in any way with the client or the boardof directors.
Audit committees have an essential role to play in ensuring the integrity and transparency of corporate reporting. The external auditor will normally report to the audit committee on all the following matters except: Select one: a.Detected frauds. b.Future staff requirements of the audit firm. c.Potential breach of Corporation Act 2001. d.The management responsibility in presenting annual financial reports.
which type of the auditors will audit The computer operations of a large corporation to evaluate whether the internal controls are likely to prevent misstatements in accounting and operating data Select one: a. internal auditor b. IRS c. external auditor d. government auditor
g. In general, internal auditors' independence will be greatest when they report directly to the: Multiple Choice O Financial vice president. Corporate controller. Audit committee of the board of directors. Stockholders.
External auditing gives confidence in the integrity of corporate reporting for the benefit of: a. Society b. Shareholders c. Management d. All options are correct
Which of the following statement is not related to role of audit committee? Approve remuneration and terms of engagement of the external auditor Monitor and review the effectiveness of the company’s internal control Monitor the integrity of the company’s financial statements To prepare the financial statement of the company in time
Audit committee activities and responsibilities includewhich of the following?a. Selecting the external audit firm.b. Approving corporate strategy.c. Reviewing management performance and determiningcompensation.d. All of the above.e. None of the above
Which of the following is NOT one of the roles of an audit committee? Which of the following is NOT one of the roles of an audit committee? reviewing the work of the internal audit ensuring that appropriate resources are used in company operations reviewing systems of internal control. launching special investigations of employees, company practices, or procedures
Independent auditors perform audits on the financial reports of public companies. This type of auditing can best be described as: Select one: O 1. a discipline that assures financial information presented by management. O 2. an activity whose purpose is to search for irregularities. 3. a regulatory function that prevents the issuance of improper financial information. O 4. a professional activity that measures and communicates financial and business data.