Which of the following is the auditors purpose of further testing the internal control procedures?

Which of the following is the auditors purpose of further testing the internal control procedures?

An auditor’s purpose for performing tests of controls is to provide reasonable assurance that:Controls are operating effectively.

Which of the following is true about the auditors Consideration of internal control in a Financial Statement Audit?

Which of the following is true about the auditors’ consideration of internal control in a financial statement audit? The auditors must assess control risk at a level lower than the maximum.

Who does the internal auditor have to report to?

Internal auditing departments are led by a chief audit executive (CAE) who generally reports to the audit committee of the board of directors, with administrative reporting to the chief executive officer (In the United States this reporting relationship is required by law for publicly traded companies).

Who is responsible for the internal audit function?

. 03 Internal auditors are responsible for providing analyses, evaluations, assurances, recommendations, and other information to the entity’s management and board of directors or to others with equivalent authority and responsibility.

What is the purpose of testing an internal control?

The purpose of internal controls testing is to see if the controls are properly detecting or preventing material errors or purposeful misstatement in financial reports.

What is the purpose of the auditor’s assessment of internal control?

The purpose of the auditor’s RA is to provide assurance that internal controls in place are adequate to mitigate risks and achieve the organization’s goals.

What is the purpose of audit testing?

The main purpose of audit testing is to check and verify the level of effectiveness of controls followed by an organization while recording its financial transactions. It ensures that it tests and detects any error, omission, or material misstatements in the financial statements.

How does testing of internal control help in the design of substantive audit procedures?

If a company’s internal controls are working effectively, it reduces the need for additional substantive audit procedures, which can be time-consuming and costly. Another purpose of these tests is to obtain further audit evidence to support the auditor’s statements.

Which of the following comes closest to outlining the auditor’s responsibility for considering internal control in all financial statement audits?

Which of the following comes closest to outlining the auditors’ responsibility for considering internal control in all financial statement audits? The auditor must obtain an understanding of each of the five internal control components sufficient to assess the risks of material misstatement for the audit.

Which of the following areas can external auditors rely on internal auditors work in auditing internal controls?

Which of the following areas can external auditors rely on internal auditors’ work in auditing internal controls? Testing of low risk internal control activities.

Which statement is correct concerning the relevance of various types of controls to a financial audit?

Which statement is correct concerning the relevance of various types of controls to a financial statement audit? Controls over safeguarding assets and liabilities are of primary importance, while controls over the reliability of financial reporting may also be relevant.

Which of the following statements is correct concerning an auditor’s assessment of control risk?

Which of the following statements is correct concerning an auditor’s assessment of control risk? Assessing control risk may be performed concurrently during an audit with obtaining an understanding of the entity’s internal control.

Should internal audit report to the CFO?

Reporting to the CFO satisfies the intent of Standard 1110: u201cThe chief audit executive must report to a level within the organization that allows the internal audit activity to fulfill its responsibilities.u201d

Does the internal auditor have to submit his report?

An internal auditor is responsible to the Board functionally and administratively to the management of the company, and the auditor submits the report to the Board.

Why do internal auditors report to the board of directors?

It is particularly important for management, through effective monitoring activities, to ensure that the system of internal control continues to operate effectively over time. Internal audit should report to the board on the effectiveness of monitoring activities undertaken by management

Who do internal and external auditors report to?

Internal Audit Report is submitted to the management. However, the External Audit Report is handed over to the stakeholders like shareholders, debenture holders, creditors, suppliers, government, etc. Internal Audit is a continuous process while the External Audit is conducted on a yearly basis.

Who is responsible internal audit?

Typically this is the board of directors or the board of trustees, the accounting officer or the audit committee. To be effective, the internal audit activity must have qualified, skilled and experienced people who can work in accordance with the Code of Ethics and the International Standards.

What is the internal audit function?

Internal audits evaluate a company’s internal controls, including its corporate governance and accounting processes. These audits ensure compliance with laws and regulations and help to maintain accurate and timely financial reporting and data collection.

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