Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 11, Problem 1RQ
To determine
Identify the three broad objectives for internal control that an auditor uses during the audit of financial statement and internal control over financial reporting.
Expert Solution & Answer
Explanation of Solution
An auditor uses three broad categories to ensure effective internal controls during the audit of financial statement and internal control over financial reporting, they are given as follows:
- To ensure reliability of reporting of financial and non-financial statements.
- To ensure effectiveness and efficiency in optimizing the use of firm’s scarce resources.
- To ensure firm’s comply with the rules and regulations states in Section 404 while issuing a report.
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Students have asked these similar questions
Which of the following is required documentation in an audit in accordance with generally acceptedauditing standards?
Group of answer choices
a. A flowchart or narrative of the accounting system describing the recording and classification of transactions for financial reporting.
b. All major stakeholder groups.
c. An internal control questionnaire identifying controls that assure specific objectives will be achieved.
d. The overall audit strategy and audit plan.
Which of the following internal audit assessments belong to specific governance processes?
a. Whistleblower process.
b. Risk management audit process
c. Internal control over financial reporting.
d. Fraud risks.
What is the objective of external auditing? Describe the role ofexternal auditing in meeting demands for unbiased financial statementand internal control information.
Chapter 11 Solutions
Auditing And Assurance Services
Ch. 11 - Prob. 1RQCh. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - Prob. 4RQCh. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQ
Ch. 11 - Prob. 11RQCh. 11 - Prob. 12RQCh. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Prob. 16RQCh. 11 - Prob. 17RQCh. 11 - Prob. 18RQCh. 11 - Prob. 19RQCh. 11 - Prob. 20.1MCQCh. 11 - Actions, policies, and procedures that reflect the...Ch. 11 - Prob. 20.3MCQCh. 11 - Prob. 21.1MCQCh. 11 - Prob. 21.2MCQCh. 11 - Prob. 21.3MCQCh. 11 - Prob. 22.1MCQCh. 11 - Prob. 22.2MCQCh. 11 - Which of the following correctly describes an...Ch. 11 - Prob. 23DQPCh. 11 - Prob. 24DQPCh. 11 - The following are misstatements that have occurred...Ch. 11 - Prob. 26DQPCh. 11 - Prob. 27DQPCh. 11 - Prob. 28DQPCh. 11 - Prob. 29DQPCh. 11 - Prob. 30DQPCh. 11 - Prob. 31DQPCh. 11 - Prob. 32C
Knowledge Booster
Similar questions
- Professional guidance indicates that the auditor should consider revenue recognition to be high risk in planning an audit of a company’s financial statements. a. Identify the activities that affect the revenue cycle. b. Identify the financial statement accounts typically associated with the revenue cycle.arrow_forwardState the objectives of the ordinary audit of financial statements. In general terms, how do auditors meet those objectives?arrow_forwardn which of the following audit type the operational area of the audit is determined by management? a. Government audit b. Internal audit c. Statutory audit d. External auditarrow_forward
- List the major components of the auditors’ report on internal control over financial reporting.arrow_forwardWhich of the following is the most important responsibility of the external auditor? a. To ensure that financial statements comply with applicable financial reporting framework b. To ensure compliance with laws and regulations applicable to the entity c. To design, implement and maintain a system of internal control d. To express an opinion on a true and fair view of the financial statementsarrow_forward
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