The Sarbanes-Oxley Act (SOX) requires that an auditor must O issue an internal control report following the evaluation of internal controls. O provide continuous consulting services to help prevent fraud. O issue a sustainability report along with the internal control report. O rotate who can lead an audit every three years.
Q: Audit risks for particular accounts and disclosures can be conceptualized in the model: Audit risk…
A: Given: The particular accounts and disclosures of audit risks can be conceptualized in the model.
Q: Assume that you are an audit senior in charge of planning the audit of an entity that your firm has…
A: SOLUTION INTERNAL CONTROL IS A PROCESS FOR ASSURING OF AN ORGANIZATIONS OBJECTIVES IN OPERATIONAL…
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A: Auditing is the process of analyzing the financial statement whether they are free from mistakes and…
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A: Audit documentation is about documenting the audit engagement through documents like letter of…
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A: PCAOB is Public company accounting oversight board is a non profit corporation established to…
Q: Star audit firm have started the annual audit of Carrefour Muscat. The auditors have a long meeting…
A: An audit may be defined as the critical examination of financial information of any entity or it can…
Q: Assume that you are an audit senior in charge of planning the audit of an entity that your firm has…
A: Internal control appears to be the technique for managing the firm's risk and ensuring the firm's…
Q: rica Gray, CPA, is a sole practitioner. She has been practicing as an auditor for 10 years. Recently…
A: 1. The independence in fact means the auditor is able to maintain a balanced attitude or objective…
Q: Which of the following is correct about assembling the audit documentation in an audit file? O a.…
A: Audit:- An audit is considered as the physical examination of books of account of company by an…
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A: Sample audit: It is a method of auditing in which a sample is being selected by considering the…
Q: You are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You…
A: An audit is a process of checking and verifying the books of account and financial information of…
Q: ou are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You visited…
A: An internal auditor (IA) is a qualified specialist who is responsible for making unbiased and…
Q: For each of the following situations involving relations between auditors and the companies they…
A: Rule: As per the confidentiality principle of code of ethics, a professional accountant shall not,…
Q: Fast plz Star audit firm have started the annual audit of Carrefour Muscat. The auditors have a…
A: Definition of Audit: An audit may be defined as the critical examination of financial information of…
Q: You are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You…
A: After a careful review of the budget for data security enhancement projects, you feel the budget…
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A: Auditor's independence is the most crucial aspect of the whole auditing process and can be…
Q: n. The audit engagement letter is sometimes initiated by the auditor. o. Predecessor auditors can…
A: Audit Engagement Letter Audit engagement letter documents the scope and objective of the audit and…
Q: Field, CPA, is auditing the financial statements of Miller Mailorder, Inc. (MMI). Field has compiled…
A: inherent risk Inherent risk is the likelihood of misfortune dependent on the idea of an…
Q: One2Three Corporation hired you as internal auditor. Your first engagement is to evaluate the…
A: Internal control may be implemented in almost every area in which the risk of fraud and theft…
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A: Answer:- A. Client Acceptance Pre Planning Establish materiality and assess risk Plan the audit…
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A: Emphasis of Matter passage – A section remembered for the reviewer's report that alludes to an issue…
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A: Introduction: Opening meeting: Opening meeting is the meeting conducted to introduce audit team to…
Q: Which of the following engagement planning procedures would most likely assist the auditor in…
A: Answer: Option d.
Q: From there on, whenever she does any audit work, she will make sure
A: Audit working papers Audit working papers are the the property of auditor. They contain…
Q: Audits are conducted for various reasons. It can help an organization ensure effective operations,…
A: Audit: It is a systematic examination of books of accounts of an individual or a firm. It is done by…
Q: In addition to the above test, state other types of tests that could be used to prove the…
A: Verification of assets is an important audit process by convention its scope has been limited to…
Q: working papers.
A: Audit working papers are the the property of auditor. They contain documentations regarding…
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A: The internal audit activity must be independent, and internal auditors must be objective in…
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A: The following cases are checked for their possible violation of IFAC’s code of ethics.
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A: Part a) The possible impact towards the company and suggest the relevant recommendation for each…
Q: The audit firm shall communicate the results of the monitoring of its system of quality control to…
A: The business entities are required to conduct an audit of their accounting books so as to find out…
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A:
Q: According to the PCAOB Auditing Standard 3 on audit documentation, the complete audit documentation…
A: Audit Documentation: Audit documentation is a record of the processes carried out, the evidence…
Q: n informs the auditor that they have now implemented a process to correct a serious nonconformity…
A: It is not correct from side of representative of management to ask to re-examine the process during…
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A: Answer: The risk of fraud is high in those companies which are not proactive on the part of…
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A: Sarbanes-Oxley Act: The Sarbanes-Oxley Act of 2002 is a law that set the new or expanded…
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A: The Sarbanes Oxley Act 2002 was passed by Congress to stop the fraudulence in the financial…
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A: Internal audit function includes: Monitoring internal controls Assessing Governance Managing risks…
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A: Given, Mohsin Auditors is an official auditor for PDO and the audit has to begin from the first week…
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A: Audit means reviewing or cross examining the financial transactions in the books to ensure that…
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A: Financial statement assertions also known as the management assertions are defined as an official…
Q: Consider the following independent situations, all of which apply to audits of entities for the year…
A: Auditing: Auditing is an independent examination of financial statements. The set of financial…
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- Star audit firm have started the annual audit of Carrefour Muscat. The auditors have a long meeting with their management. Their target is to conduct the audit during one week. The auditors have started their work. identify which of the following is related to their audit process. O a. Discussing corrective action plan O b. Identifying the risk Oc Conduct interviews O d. Create audit procedure and planWhich of the following BEST (select one) describes why auditing can be viewed as a continuous cyclical process? a) The audit plan is used to develop the audit schedule. b) Many audit departments review the same areas each year as part of the audit plan. c) Historical and current information from audits should be incorporated into the risk assessment. d) Businesses go through economic cycles, so audit plans must go through cycles.The audit firm shall communicate the results of the monitoring of its system of quality control to engagement partners and other appropriate individuals within the firm: A. Quak Quarterly B. Occasionnally C. Every month D. At least annually
- Which of the following are required by the Sarbanes Oxley Act? Check all that apply. O The company's annual report must contain the CEO's assessment of the company's internal controls O Audit firms must rotate off a client every 5 years OCFOS must consult with the audit committee before hiring an auditor O Companies must develop and enforce a code of ethicsA representative of the PMO emailed you to notify you of an internal audit they want to perform on your project. Later in the day, you brainstorming with your team about the possible reasons for the audit. Which of the reasons below can you eliminate as a possible reason for this audit? A regulatory organization has asked for the audit The PMO is preparing for an annual audit from an accounting company The PMO wants to know if project templates are being used appropriately The PMO wants to know if the team is doing their job wellMohsin Auditors is an official auditor for PDO. The audit has to begin from the first week of January 2021 for the year ended 2020. The auditors are coming up with clear objectives of audit. The auditors have already decided the audit methodology. The audit methodology of the auditors shall be based on: Issued discussed during the entrance meeting with management of PDO Audit program of Auditors Corrective action plan and their implementation Issues identified during the audit
- After a preliminary review of the clients, revenue and receipt transaction cycle, the auditor assessed the preliminary audit risk at a high level, which of the following additional procedures would the auditor most likely perform next: * a. Obtain evidence about the consistency of the application of the client's internal control procedures. b. Increase the overall audit materiality level. c. Perform extensive analytical procedures as substantive test at year-end. d. Increase the volume of evidence that will satisfy the auditor's sufficiency criteria. e. None of the aboveYou have been employed Arens & Elder CPA for many years. As a training officer for the firm, part of your responsibility include training new staff before they are sent out on an initial audit job. Three new members of staff are expected to work on the audit of Flemings Limited. Your training of these new staff members will focus on management assertions and audit procedures. The following are various management assertions (1 through 10), made by Flemings, that are related to their sales and accounts receivable. i. All sales transactions have been recorded. ii. Receivables are appropriately classified as to trade and other receivables in the financial statements and are clearly described. iii. Accounts receivable are recorded at the correct amounts. iv. Sales transactions have been recorded in the proper period. v. Sales transactions have been recorded in the appropriate accounts. vi. All required disclosures about sales and receivables have been made. vii. All…Large audits are usually split into two phases. Close to the end of the year interim audits consisting of transaction testing and system assessment work are carried out. The final audit takes place after the year end and this involves testing of items of statement of financial position and the balance of the work. Required: (a). Identify FOUR key benefits that may arise as a result of spreading the audit work across interim audit and final audit. (b). Explain FOUR audit procedures required to be carried out during final audit and audit procedures carried out during Interim Audit. (c). According to ISA 300, certain procedures must only be performed at or after a year end. Identify TWO of these procedures.
- 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.You are auditing a client that supplies electrical products to retail stores and electrical contractors throughout the country.The client keeps its accounts receivable records on a computer system, which is updated at the end of each business day.You plan to audit accounts receivable balance as at the end of the financial year, and you have a generalised audit software (GAS) package available to help in this task.Required:Identify ten (10) substantive audit procedures that you could perform using generalised audit software (GAS) in relation to auditing the accounts receivable account.Which of the following is true with respect to PCAOB inspections of accounting firms?a. All firms performing audits of public companies are required to have annual inspectionsconducted by the PCAOB.b. PCAOB inspections review a sample of audits conducted by firms as well as the firm’ssystems of quality control.c. All results of PCAOB inspections are made available to the public following the inspection.d. Firms performing audits of 100 or fewer public entities may elect to have a peer reviewconducted through the AICPA in lieu of a PCAOB inspection.