A2 Quality Control, Engagement Acceptance, Planning & Internal Control

Question 1

In the planning phase of an integrated audit, what are some analytical procedures that would most likely be performed by auditor?

Answer 1

1. comparing current year’s sales per square foot
2. comparing current year same-store sales with budgeted amounts
3. comparing specific client financial ratios and comparing to industry averages.

Question 2

When independent auditor reviews the internal auditor’s report to verify that the conclusions reached are consistent with the procedures performed when assessing the _________ of the internal auditor.

Answer 2

Competence

Question 3

When assessing an internal auditor’s _________, and independent auditor should consider the policies that prohibit the internal auditor from auditing areas where relatives are employed in key management positions.

Answer 3

objectivity

Question 4

The audit plan usually cannot be finalized until the consideration of the entity’s _____ _______ has been completed.

Answer 4

Internal control