M1 Integrated Audit procedures

Question 1

Integrated Audits audit both (Public companies)

Answer 1

The Financial statements and management’s assertion of effective internal controls

Question 2

When developing an audit strategy the auditor should consider FELT

Answer 2

-Financial reporting practices within the industry
-Economic conditions
-Laws and regulations
-Technological change

Question 3

When doing a fraud risk assessment the auditor should consider:

Answer 3

-Management override
-Management bias
-Related party transactions
-Period ending Journal entries
-Significant YE journal entries
-Unusual transactions

Question 4

Top - down approach

Answer 4

-Evaluate overall risks
-Consider controls at the entity level
-Focus on the accounts, disclosures, and assertions

Question 5

When an entity has eliminated prior material weaknesses management must provide

Answer 5

a written report to accompany the updated report.

Question 6

If no written representation letter is received the auditor should

Answer 6

either withdrawal from the engagement or disclaim an opinion