Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 26, Problem 10RQ
To determine
Explain the reason for that the internal auditors are as the primary responsible for conducting operational audits.
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Explain why many people think of internal auditors as theprimary group responsible for conducting operational audits
Consider the “control environment.” Asses why it is important for auditors to understand a client’s control environment. What are some limitations of internal controls?
Auditors seek to understand a client's internal control in order to better serve their clients.
Chapter 26 Solutions
Auditing and Assurance Services (16th Edition)
Ch. 26 - Prob. 1RQCh. 26 - Prob. 2RQCh. 26 - Prob. 3RQCh. 26 - Prob. 4RQCh. 26 - Prob. 5RQCh. 26 - Prob. 6RQCh. 26 - Prob. 7RQCh. 26 - Prob. 8RQCh. 26 - Prob. 9RQCh. 26 - Prob. 10RQ
Ch. 26 - Prob. 11RQCh. 26 - Prob. 12RQCh. 26 - Prob. 13RQCh. 26 - Prob. 14RQCh. 26 - Prob. 15RQCh. 26 - Prob. 16.1MCQCh. 26 - Prob. 16.2MCQCh. 26 - Prob. 16.3MCQCh. 26 - Prob. 17.1MCQCh. 26 - Prob. 17.2MCQCh. 26 - Prob. 17.3MCQCh. 26 - Prob. 18.1MCQCh. 26 - Prob. 18.2MCQCh. 26 - Prob. 18.3MCQCh. 26 - Prob. 19.1MCQCh. 26 - Prob. 19.2MCQCh. 26 - Prob. 19.3MCQCh. 26 - Prob. 20DQPCh. 26 - Prob. 21DQPCh. 26 - Prob. 22DQPCh. 26 - Prob. 23DQPCh. 26 - Prob. 24DQPCh. 26 - Prob. 25DQP
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Similar questions
- How can internal auditors achieve practical independence?arrow_forwardConsider “control environment.” Why it is important for auditors to understand a client’s control environment. What are some limitations of internal controls? Now consider “segregation of duties.” Determine why it is important in an IT environment. What are some advantages of using IT and audit software when conducting an audit?arrow_forwardCan the work of internal auditors be used by external auditors?arrow_forward
- Is it possible for external auditors to utilize the work of internal auditors?arrow_forwardWhat is internal control? Why is an auditor interested in a client’s internal control?arrow_forwardExplain why managers who outsource their IT function may or may not also outsource responsibility for IT controls. What options are open to auditors regarding expressing an opinion on the adequacy of internal controls?arrow_forward
- Briefly explain the threats to an external auditor’s independence with examples.arrow_forwardExplain how SOX has affected audit firms.arrow_forwardWhich of the following is not a scope of internal auditors? Efficient Use of Resources Services to whole organization Objectives and goals achievement Compliance with Policies and Proceduresarrow_forward
- Why is it important for internal auditors to have a fundamental understanding of diverse business processes?arrow_forwardIs an organization’s internal audit function part of its system of internal controls? If your answer is yes, explain how the internal audit function can evaluate the design adequacy and operating effectiveness of internal controls and at the same time remain independent of the organization’s system of internal controls. If your answer is no, explain the internal audit function’s role relative to the organization’s system of internal controls.arrow_forwardWhy is it necessary for internal auditors to have a basic knowledge of various bsuiness processes?arrow_forward
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