A2 Flashcards
Monitoring is the process of assessing the ________ of __________ control performance over time and taking the necessary corrective actions. ____________ a control that is not operating effectively would not be an appropriate corrective actions
QUALITY; INTERNAL; ELIMINATING
Internal Control- integrated Framework would not be use to define _____ that must be followed throughout the organization
RULES
Substantive procedures include ____ of _______ and _________ procedures and are used to detect ___________ misstatements
TEST; DETAILS; ANALYTICAL; MATERIAL
Successor Auditor should ___________ contact with the predecessor auditor after receiving permission from the __________
INITIATE; CLIENT
Audit confirmations from client’s customers taking longer than usual may lead auditor to suspecting that _____________ exists
FRAUD
A key way of telling if management specialist or audit specialist to know who _______ the individual
HIRED
A management specialist or auditor’s specialist is someone who has an expertise in an area other than ____________ or __________
ACCOUNTING; AUDITING
A Senior Auditor not reviewing workpapers prepared by staff auditors is a violation of which standard?
GENERAL STANDARDS RULE
Outlining the nature, extent and timing of audit procedures is the primary function of an audit strategy. (T or F)
FALSE
COSO was created to help businesses assess _________ control
INTERNAL
Information and communication component of the integrated framework, a company must ensure that external auditors are aware of __________ internal _________ issues
SIGNIFICANT; CONTROL
The engagement quality reviewer is required to identify the documentation __________
REVIEWED
The risk that mistakes, falsifications and omissions may cause the financial statements to contain material misstatements is an important consideration in an auditor’s responsibility to detect __________ and __________
ERRORS; FRAUD
Whos is responsible for detecting immaterial errors between an auditor and the client
NEITHER
Who is responsible for the provision of the representation letter between an auditor and a client?
CLIENT
In an audit, a misstatement that involves an estimate is considered a ____________ misstatement
JUDGEMENTAL
A successor auditor would request to review the predecessor auditor’s documentation relating to _____________ and ____________ ___________
CONTINGENCIES; INTERNAL CONTROL
When materiality is calculated by an auditor prior to year end based on PY FS and final FS have a material difference, the auditor should __________ materiality for the FS as a __________
REVISE; WHOLE
Differences between management and auditor are considered what type of misstatement?
JUDGEMENTAL
Making inquiries of the predecessor auditor regarding management integrity is required before accepting an new auditing engagement. (T or F)
True
Acceptable level of detection risk is inversely related to the assurance provided by _____________ tests
SUBSTANTIVE
According to COSO the first on going monitoring step in evaluating the effectiveness of and internal control system is establishing ____________ baseline
CONTROL
When and auditor is requested to change an audit to a review engagement due to a scope limitation, the auditor need not refer to the ___________ engagement
ORIGINAL
an uninterrupted power supply is an example of what type of control
PHYSICAL CONTROL: these
An auditor assessing control risk at a low level can help offset high levels of __________ risk
INHERENT
When a client has missplaced a document, an auditor should approach that situation with a __________ risk that __________ may have occured
HEIGHTENED; FRAUD
Lack of independent checks is a _________ risk factor that provides an opportunity for ___________ of assets
FRAUD; MISAPPROPRIATION
proper segregation of duties is an example of a control environment factor (T or F)
False
