A2

Question 1

What are the 6 elements of Quality control

Answer 1

1. Human resources
2. Engagement/client acceptance and continuance
3. Leadership responsibilities
4. Performance of the engagement
5. Monitoring
6. Ethical requirements

Question 2

For issuer - what is the amount of years you are required to maintain?

Answer 2

7 years

Question 3

What is the number of dats nonissuers should complete the assembly of final audit findings?

Answer 3

60 days

Question 4

What is the primary obj of an auditor when accepting initial audit engagement of nonissuer is to what?

Answer 4

Establish whether the preconditions for an audit are present

Question 5

What is not assessed by the auditors part of the decision procession of new client?

Answer 5

Integrity of audit firm

Question 6

What are the 3 primary internal control planning objective of an auditor in a financial statement audit?

Answer 6

1. ID types of potential MM
2. Consider factors that affect the risk of MM
3. Design effective substantive tests

Question 7

What does an external auditor evaluate when it comes to an internal auditors competence?

Answer 7

Education 
professional certification 
experience
performance evaluations
audit plan
audit procedures quality of audit documentation

Question 8

What does an external auditor evaluate when it comes to an internal auditors Objectivity?

Answer 8

Auditor should evaluate the org level to which an internal auditor reports as well policies prohibits audits of area where the internal auditor lacks independence

Question 9

Define Microcomputer systems

Answer 9

Characterized by weak file and data security and are usually accessible by many office personnel

Question 10

Define the test data approach

Answer 10

Technique in which the client’s application program is used to process a set of test data, the results of which are already known by the auditor (if the clients program is operating effectively, it should generate the same results determined by auditor)

Question 11

What is an auditors primary consideration regarding an entity’s internal control?

Answer 11

Whether the controls affect the financial statement assertions

Question 12

Define a walkthrough

Answer 12

Follows a transaction from its origination until it is reflected in the financial statements

Question 13

Define General controls

Answer 13

Policies and procedures that relate to many applications and support the effective functioning and proper operation of the information system. (procedures to ensure appropriate system software acquisition.

Question 14

In what situations would manual controls be more suitable over automated controls?

Answer 14

when there are large, unusual, or nonrecurring transactions

Question 15

What is the primary obj of the fraud brainstorming session?

Answer 15

Assess the potential for material misstatement due to fraud