I need some help in addressing the question below. Thank you. 1. IT Segregation of Duties: The IT Audit Director identifies an issue related to IT segregation of duties - several developers have access to production for support reasons. The VP of Application Development has stated that this access is needed to support the s
It should be a essay containing these questions about Avis Love, Staff Accountant . Please include work-cited. 1. Would it have been appropriate for Avis to substitute another store for Store 51 after she discovered the cutoff errors in that stores accounting records? Defend your answer. 2. Identify the parties potentially
Fishkin, CPA, is attempting to determine whether the average height of a player on a basketball team is greater than 80 inches. Based on his sample of basketball players, he determined an estimate of 76 inches with an associated precision of 10 inches. The confidence in this estimate is 90% A. What on the precision interval a
You are auditing Green Corporation for the calendar year 2010. Among other items related to the audit; Green Corporation was being sued for personal injury resulting from the malfunction of one of their products. The lawsuit was initiated by Sue Ewe in September, 2010. Management and the company's outside legal counsel estimated
Is the confirmation of cash and account receivable required according to auditing standards? Explain.
Pontificate and Associates (PA) are a regional audit firm operating in South East Ontario. Their chief partner, Louis Pontificate, received his CA in the early 1960's. Since starting his own audit firm in 1965, he has seen it grow to a firm with 25 associate partners. At the age of 71, he still works hard although he is well eno
You are the chief audit executive for the internal auditing function of a large municipal hospital. You receive monthly financial reports prepared by the accounting department, and your review of them has shown that total accounts receivable from patients have steadily and rapidly increased over the past eight months. See att
Goodner Brothers 1. List what you believe should have been the three to five key internal controls objectives of Goodner's Huntington sales office. 2. List the key control weaknesses that were evident in the Huntington unit's operation. 3. Develop one or more control policies or procedures to alleviate the control weakn
At the completion of the Darby Department Store audit the president asks about the meaning of the phrase "in conformity with generally accepted accounting principles," which appears in your audit report on the management's financial statements. He observes that the meaning of the phrase must include more than what he thinks as "
25) Information risk refers to the risk that A. the client may not be able to remain in business. B. errors and frauds are not detected by the auditor's procedures. C. the client's financial statements may be materially false and misleading. D. the auditor may express an unqualified opinion on financial sta
22) Which control question relates to the existence and occurrence objective in purchasing and accounts payable? A. Does the chart of accounts and accounting manual provide instructions for classifying debit entries? B. Are the purchase order forms prenumbered and is the numerical sequence checked for missing documents
1) Rule 102, Integrity and Objectivity, applies to A. all professional services. B. all accounting and audit services. C. all attestation services. D. only audit services. 2) The fundamental issues in independence require that the auditor avoid A. financial connections with the firm and acting a
1. Describe 2-3 areas of auditing risk in a retail business one might feel do not have sufficient controls. Explain what risks the organization faces by allowing these items to continue in their current form. 2. Using the 2-3 risk areas identified in question #1, explain the control procedures you would recommend establishin
Describe in detail the controls over payroll in auditing. Please list at least one reference.
1. Explain why sampling is important in the auditing process. Give an example of an instance where sampling would be appropriate and an example of where it would not, explain why 2. Define inherent risk and explain how this applies to transaction cycles. Give an example of how flowcharting or control matrices could help ident
What is design management? Why is auditing used in design management? When should design auditing be used? Explain your answer
Checklist for Evaluating Internal Controls ââ?¬¢ Prepare a comprehensive checklist for evaluating internal controls. ââ?¬¢ Apply the checklist to outline/discuss phases of the control evaluation.
What sampling tools and techniques will be used for the examination? What analytical and inferential tools will be used to evaluate accounting evidence?
There have been a lot of talk in these posts about internal and external users, but what about the auditors? Can anyone tell us which one of these types of analysis would be beneficial to them? Could they use both? What about when auditing for materiality and fluctuations over time?
SLL has a partner, Dick, who is involved in a nasty divorce. This partner's soon-to-be former wife Georgia had a very successful company. He feels his wife is trying to hide income from him. Dick asks you if a forensic accountant would be helpful in this situation. You do some research for Dick, and put together a report incl
Of the 10 steps to using CAATs outlined in Ch. 8 of Core Concepts of Information Technology Auditing, which is the most important and why? If you had to add an additional step what would it be and why?
Is it probable that the use of information technology (IT) will eventually eliminate the audit trail, making it impossible to trace individual transactions from their origin to the summary total in the financial statements? Explain. How do the American Institute of Certified Public Accountants (AICPA) and the Public Company Acco
I would say the use of auditor judgment or instinct is not only acceptable, but also required. The text explains this best: "GAAS and the SASs should be looked on by practitioners as minimum standards of performance rather than as maximum standards or ideals. Any professional auditor who seeks means of reducing the scope of the
"The reperformance technique should be used in order to ensure the audit evidence supports the conclusions as reperformance is independent execution of procedures or controls that the auditor can verify the evidence originally generated by the client's system." Our text tells us that "both physical examination and reperformance
"four decisions" that auditor's must make in determining the amount and type of evidence to collect. In my opinion, the first three are probably the ones auditors focus on the most. However, I think the fourth point regarding the timing is just as critical (if not more important) in most circumstances. Timing can be influence
What is the importance of defining the population when performing audit procedures? How would defining the population affect the sample size? How would incorrectly defining the population affect the sampling unit? Why do auditors find it necessary to use sampling? What are the risks associated with sampling? How might these r
Why is it important that an auditor make a second assessment of materiality at the conclusion of the audit? Who in the audit firm is generally responsible for making these assessments?
What is generalized audit software? What are the tasks for which auditors would use it? What are the advantages and disadvantages of using generalized audit software?
16. Differences exist between the Securities Act of 1933 and 1934. More cases have been brought against auditors under the 1934 Act because it applies to annual filings and: 17. The type of risk that is independent of the audit of the financial statements and therefore cannot be changed is: 18. Occasionally, employees
a) List the steps involved in selecting and evaluating a nonstatistical or a statistical sample for tests of controls. b) Identify the professional judgments that must be made associated with each step.