EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Question
Chapter 3, Problem 3.29P
a.
To determine
Concept Introduction:
Audit committee is a committee that includes all boards of directors to supervise all financial reporting in firms. This committee is responsible for any type of error occur in reporting or in internal and external audit. This committee is also helping to maintain the communication between the company and its management.
To Describe: the audit committee
b.
To determine
Concept Introduction:
Audit committee is a committee that includes all boards of directors to supervise all financial reporting in firms. This committee is responsible for any type of error occur in reporting or in internal and external audit. This committee is also helping to maintain the communication between the company and its management.
To Describe: the reasons of formation of audit committee
c.
To determine
Concept Introduction:
Audit committee is a committee that includes all boards of directors to supervise all financial reporting in firms. This committee is responsible for any type of error occur in reporting or in internal and external audit. This committee is also helping to maintain the communication between the company and its management.
To Describe: the functions of audit committee:
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Students have asked these similar questions
Section 301 of the Sarbanes-Oaxley requires that public companies have an audit committee. Independent auditors are increasingly involved with audit committees.
Required:
a. Describe what an audit committee is.
b. Identify the reasons why audit committees have been formed and are currently in operation.
c. Describe the functions of an audit committee.
True or False
Independent Auditor is responsible for preparing the financial statements, establishing and maintaining adequate internal control over financial reporting (ICFR), and evaluating the effectiveness of ICFR. *
Under Sarbanes–Oxley Section 301 public company audit committees are directly responsible for the appointment, compensation, and oversight of the work of any registered public accounting firm employed by their company. *
Auditors are required by the Security and Exchange Commission to report to the audit committee of the publicly-traded company all alternative treatments of financial information within generally accepted accounting principles that have been discussed with management officials. *
CFO and the audit committee depend heavily on one another *
Included in the Environment disclosures are the risks and opportunities due to climate change, procurement practices with respect to local suppliers, and anti-corruption *
13. When auditing an entity's financial statements in accordance with Government Auditing Standards (the "Yellow Book"), an auditor is required to report on: I. Recommendations for actions to improve operations. II. The scope of the auditor's tests of compliance with laws and regulations.
Group of answer choices
I only.
II only.
Both I and II.
Neither I nor II.
Chapter 3 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 3 - Prob. 3.1RQCh. 3 - Prob. 3.2RQCh. 3 - Prob. 3.3RQCh. 3 - Prob. 3.4RQCh. 3 - Prob. 3.5RQCh. 3 - Prob. 3.6RQCh. 3 - Prob. 3.7RQCh. 3 - Prob. 3.8RQCh. 3 - Prob. 3.9RQCh. 3 - Prob. 3.10RQ
Ch. 3 - Prob. 3.11RQCh. 3 - Prob. 3.12RQCh. 3 - Prob. 3.13RQCh. 3 - Prob. 3.14RQCh. 3 - Prob. 3.15RQCh. 3 - Prob. 3.16MCQCh. 3 - Prob. 3.17MCQCh. 3 - Prob. 3.18MCQCh. 3 - Prob. 3.19MCQCh. 3 - Prob. 3.20MCQCh. 3 - Prob. 3.21MCQCh. 3 - Prob. 3.22MCQCh. 3 - Prob. 3.23MCQCh. 3 - Prob. 3.24MCQCh. 3 - Prob. 3.25MCQCh. 3 - Prob. 3.26PCh. 3 - Prob. 3.27PCh. 3 - Prob. 3.28PCh. 3 - Prob. 3.29PCh. 3 - Prob. 3.30PCh. 3 - Prob. 3.31PCh. 3 - Prob. 3.32P
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Similar questions
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- When completing the audit of internal controls for a public company, AS 2201 requires auditors to report onarrow_forwardWhich section of the regulations require a CPA to comply with Generally Accepted Accounting Principles and Generally Accepted Auditing Standards? If compliance is required by other organizations (PCAOB, AICPA, etc.) why do you think this requirement is also included in the regulations?arrow_forwardGovernmental auditors’ independence and objectivity are enhanced when they report theresults of an audit assignment directly toa. Managers of the government agency under audit and in which the auditors are employed.b. The audit committee of directors of the agency under audit.c. Political action committees of which they are members.d. The congressional committee that ordered the audit.arrow_forward
- In an audit report on the effectiveness of ICFR for a public company, to what does the basis of opinion paragraph make a reference? A definition of ICFR that is taken directly from PCAOB AS 2201. O The COSO Internal Control-Integrated Framework as the criteria used as the basis for determining if ICFR are effective. O The financial statement audit report and the type of opinion that was given on the financial statements. Registration with the PCAOB and independence requirements of the SEC and other federal securities laws.arrow_forwardWhich of the following statements about the auditor's responsibilities in public company audits is true as covered by the PCAOB? A. The auditor issues an opinion on the financial statements and management issues the opinion on internal control over financial reporting. B. The auditor issues an opinion on the financial statements only if internal control over financial reporting is found to be effective. C. The auditor issues an opinion on the financial statements; if those are found to be fairly stated, the auditor proceeds to issue an opinion on internal control over financial reporting. D. The auditor issues opinions on the financial statements and internal control over financial reporting.arrow_forwardWhich regulatory body sets auditing standards for private companies, and also established the Principles Underlying an Audit Conducted in Accordance with Generally Accepted Auditing Standards? FASB O PCAOB AICPA SEC ASBarrow_forward
- The Sarbanes-Oxley Act (SOX) mandates which of the following? a. Increased regulations related to auditor–client relations. b. Increased regulations related to internal control. c. Increased regulations related to corporate executive accountability. d. All of the above.arrow_forwardUnder the Public Financial Management Act, Audit Committees are required to play important roles in corporate governance and Accountability. Required: Discuss FIVE (5) mandatory roles and responsibilities and FIVE (5) advisory roles and responsibilities of Audit Committees that may contribute to Corporate Governance and Accountability.arrow_forwardWhich of the following are rights of the auditors? a) The right to all information and explanations (from management) necessary for the proper conduct of the audit. b) The right to receive notice of all meetings of the shareholders (such as the annual general meeting) and to attend those meetings. c) The right to speak at shareholders’ meetings on matters affecting the audit or the auditor. d) The right to visit the branches of the audit firm and right to access all accounting books and records. e) The right to examine and evaluate financial and information systems, recommending controls to ensure system reliability and data integrity f) The right to review data about material assets, net worth, liabilities, capital stock, surplus, income and expenditures Only e) and f) Only d) , e) and f) Only a) , b) and c) Only a) , b) ,c) and d)arrow_forward
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