Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Question
Chapter 18, Problem 32IOQ
To determine
Identify the appropriate answer related to the material weakness in the control deficiency.
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1. Describe in detail the main internal control weakness in this situation. Specify what
negative result(s) could occur because of the internal control weakness.
2. Describe what you would do to correct the internal control weakness.
What must occur if a Significant Deficiency is identified?
“Total input includes abnormal as well as normal spoilage and is, therefore, inappropriate as a basis for computing normal spoilage.”Do you agree? Explain.
Chapter 18 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 18 - Prob. 1RQCh. 18 - Prob. 2RQCh. 18 - Prob. 3RQCh. 18 - Prob. 4RQCh. 18 - Prob. 5RQCh. 18 - Prob. 6RQCh. 18 - Prob. 7RQCh. 18 - Prob. 8RQCh. 18 - Prob. 9RQCh. 18 - Prob. 10RQ
Ch. 18 - Prob. 11RQCh. 18 - Prob. 12RQCh. 18 - Prob. 13RQCh. 18 - Prob. 14RQCh. 18 - Prob. 15RQCh. 18 - Prob. 16RQCh. 18 - Prob. 17RQCh. 18 - Prob. 18RQCh. 18 - Prob. 19RQCh. 18 - Prob. 20RQCh. 18 - Prob. 21RQCh. 18 - Prob. 22RQCh. 18 - Prob. 23RQCh. 18 - Prob. 24RQCh. 18 - Prob. 25RQCh. 18 - Prob. 26RQCh. 18 - Prob. 27RQCh. 18 - Prob. 28RQCh. 18 - Prob. 29QRACh. 18 - Prob. 30QRACh. 18 - Prob. 31QRACh. 18 - Prob. 32AOQCh. 18 - Prob. 32BOQCh. 18 - Prob. 32COQCh. 18 - Prob. 32DOQCh. 18 - Prob. 32EOQCh. 18 - Prob. 32FOQCh. 18 - Prob. 32GOQCh. 18 - Prob. 32HOQCh. 18 - Prob. 32IOQCh. 18 - Prob. 32JOQCh. 18 - Prob. 32KOQCh. 18 - Prob. 32LOQCh. 18 - Prob. 33OQCh. 18 - Prob. 34OQCh. 18 - Prob. 35OQCh. 18 - Match the following definitions (or partial...Ch. 18 - Prob. 37PCh. 18 - Prob. 38ITC
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Similar questions
- Which of the following would not result in exposure to nonsampling risk?a. Measuring the characteristic of interest in an inappropriate manner.b. Selecting items that are not representative of the population of interest.c. Making an unintentional mistake in measuring the characteristic of interest.d. All of the above would result in exposure to nonsampling risk.arrow_forwardWhich statement is incorrect concerning the constraint on relevant and reliable information? * A. Information may be relevant but so unreliable in nature or representation that its recognition may be potentially misleading. B. The balance between benefit and cost is a pervasive constraint which means that the benefits derived from the information should exceed the cost of providing it. C. If there is undue delay in the reporting of information, it may lose its relevance and reliability. D. In achieving a balance between relevance and reliability, the overriding consideration is how best to satisfy the economic decision-making needs of users.arrow_forward7.8 Tralor Corporation manufactures and sells several different lines of small elec- tric components. Its internal audit department completed an audit of its expen- diture processes. Part of the audit involved a review of the internal accounting controls for payables, including the controls over the authorization of transactions, accounting for transactions, and the protection of assets. The auditors noted the following items: 1. Routine purchases are initiated by inventory control notifying the purchasing de- partment of the need to buy goods. The purchasing department fills out a prenum- bered purchase order and gets it approved by the purchasing manager. The original of the five-part purchase order goes to the vendor. The other four copies are for pur- chasing, the user department, receiving for use as a receiving report, and accounts payable. 2. For efficiency and effectiveness, purchases of specialized goods and services are ne- gotiated directly between the user department and…arrow_forward
- Select each attribute with the most directly related term. No term is used more than once. Attributes 1. Likelihood a misstatement will not be prevented or detected 2. Substantive procedures and tests of controls 3. Likelihood of misstatement assuming no controls 4. Reporting on internal control and financial statements 5. Creates a reasonable possibility a material misstatement will not be detected 6. Inquiries, analytical procedures, observation 7. Merits attention, less than a material weakness 8. GAAP 9. Inquire, inspect, observe, reperform 10. Follow a transaction through the system Termarrow_forwardAn information is called as correct if it is. a. Misleading b. Free from error c. Irrelevant d. Not usefularrow_forwardRisk of material misstatements increases ifarrow_forward
- Regarding materiality, both amount and nature of misstatements should be considered. One of the inherent limitations of internal control is the lack of segregation of duties. Group of answer choices False, False True, True True, False False, Truearrow_forward19. Inherent risk is the risk that internal control will fail to prevent or detect and correct the material misstatementSelect one:TrueFalsearrow_forwardDefine the following terms: (a) performance materiality, (b) tolerable misstatement, (c) clearly trivial.arrow_forward
- Discuss the differences between a control deficiency, a significant deficiency, a material weakness, and the two dimensions of the control deficiency - likelihood and magnitude.arrow_forwardWhat is the term given for information that should NOT be taken from one source as the collectors of the information may have collected this for a specific purpose? a. Accuracy b. REliability c. Completeness d. Biasarrow_forwardThe risk associated with inefficient use of inputs or over-provision of services is ⚫ A. An actuarial risk • B. A utilization risk⚫ C. A cost risk. D. A financial riskarrow_forward
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