An independent auditor might consider the procedures performed by the internal auditors because. internal control letter. Originally considered weak, payroll controls now appear to be effective, based on auditor testing of selected controls ____3. Buldger Retailing, Inc. One method of judging objectivity is to, reviewing the recommendations made in the reports of internal auditors to provide direct assistan on the engagement. 6 This SA, The terms “audit" or "audited financial statements” in this Nonprofit Audit Guide© refer to the work product resulting from the independent examination of a nonprofit’s financial records by a licensed certified public accountant (CPA) (also referred to in this Guide as the “auditor,” or the "auditing firm"). CBAED c. Most of the procedures for a financial statement audit may be performed by the external or internal auditors. The independent auditors might consider the procedures performed by the internal auditors because: A. D. If the independent auditor decides that the work performed by internal auditors may have a bearing on his own procedures, he should consider the com­ Study with Quizlet and memorize flashcards containing terms like Hawkins requested permission to communicate with the predecessor auditor and review certain portions of the predecessor auditor's working papers. Jul 22, 2018 · Whether internal auditors have performed procedures to identify or detect fraud during the year, and whether management has satisfactorily responded to the findings resulting from those procedures; (iv) Whether internal auditors are aware of instances of management override of controls and the nature and circumstances of such overrides; and (v) 8 The auditor may use internal auditors to provide direct assistance in other aspects of the confirmation process in accordance with AS 2605, Consideration of the Internal Audit Function, which establishes requirements for using internal auditors to provide direct assistance to the auditor including supervising, reviewing, evaluating and Nov 15, 2007 · (Inquiries as to matters under a, and c (ii) and (iii) ordinarily would be unnecessary if the principal auditor already knows the professional reputation and standing of the other auditor and if the other auditor's primary place of practice is in the United States. ) [As modified, September 1981, by the Auditing Standards Board. II. An independent auditor might consider the procedures performed by the internal audit function because A. Although many recognize that the audit profession plays an essential role in the functioning of the global capital markets and adds value to the roles played by other stakeholders in the financial reporting process, others contend that The work of internal auditors may affect the independent auditor's: I. Procedures performed in obtaining an understanding of the internal control structure. International Standard on Auditing (ISA) 610, Using the Work of Internal Auditors was revised and published in 2013. They are employees whose work might be used to modify the nature, timing, or extent of audit procedures to be performed by the independent auditor. The reason the independent auditor must understand the internal audit function, d. The external auditors might consider the procedures performed by the internal auditors because: They are employees whose work must be reviewed during substantive testing. An auditor might consider the procedures performed by the internal auditors because A. their work impacts upon cost/benefit tradeoff in evaluating inherent limitations. The external auditors might consider the procedures performed by the internal auditors because: 1. Relative to objectivity, the CPA should: <p>The work performed by internal auditors may be a factor in determining the nature , timing and extent of the independent auditor's procedures. 2. An independent auditor might consider the procedures performed by the internal audit function because: A. a. They are employees whose work might be relied upon. independence and review skills d. Their work impacts upon the cost-benefit tradeoff in evaluating inherent limitations. Nov 28, 2023 · An independent auditor might consider the procedures performed by the internal audit function because they are employees whose work might be relied upon. AS 2605, Consideration of the Internal Audit Function, provides guidance on considering the work of internal auditors and on using internal auditors to provide direct assistance to the auditor. ANSWER: B 58. The work performed by internal auditors may be a factor in determining the nature, timing, and extent of the independent auditor's procedures. An independent auditor might consider the procedures performed by the internal auditors because they are employees whose work may affect the nature, timing, and extent of audit procedures. They are employees whose work might affect the external auditors' work. efficienty and experience c. An independent auditor might consider the procedures performed by the internal audit function because: they are employees whose work must be reviewed during substantive testing. The internal audit function is inherently part of the organization's bureaucracy and plays a critical role in monitoring and evaluating controls, processes, and procedures internally. I and III only II and III only I, II, and III I and II only. Their work affects the cost-benefit trade-off. 2200 Auditing Internal Control Over Financial Reporting. Their work impacts upon the cost/benefit tradeoff in evaluating inherent limitations. they are employees whose work might be considered. 3. 3 The need to maintain control does not preclude the use of internal auditors in the confirmation process. III. Understanding of the types of fraud that are probable, given the present system. They are employees whose work may affect the nature, timing, and extent of audit procedures. The work of internal auditors may affect the independent auditors I Procedures from ECONOMY no at Hunan University Study with Quizlet and memorize flashcards containing terms like Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. The goal of an internal audit is to provide independent assurance over a company’s operations. This standard focuses on whether the external auditor can use the work of the internal audit function for purposes of audit, and the revised version of the standard, clarified whether the internal auditors could be used to provide Jun 24, 2024 · Before any audit procedures are performed, the internal auditors often start by developing the audit plan. The independent auditors might consider the procedures performed by the internal auditors because b. Competence and May 23, 2024 · Internal auditing is the independent and objective-focused consulting activity that occurs within an organization’s 3rd line. their degree of independence may be inferred by the nature of their work. An independent auditor might consider the procedures performed by the internal audit function because . They are employees whose work must be reviewed during substantive testing B. The results of analytical procedures. </p> 16. management letter. In assessing the competence of an internal auditor, the auditor should consider such factors as (1) educational level and professional experience; (2) professional certification and continuing education; (3) audit policies, programs, and procedures; (4) supervision and review of the internal auditor's activities; (5) practices regarding The external auditors might consider the procedures performed by the internal auditors because: A. The work performed by internal auditors may be a factor in determining the nature, timing, and ex­ tent of the independent auditor's procedures. Their degree of independence may be inferred by the nature of their work. 54 The following are additional examples of audit procedures that might be performed in response to assessed fraud risks relating to fraudulent financial reporting: Revenue recognition. Although controls over the processing of vendor invoices were effective in past years and were thought to be unchanged for the year under audit, tests of controls revealed a significant deterioration ____4. their degree of independence may be The independent auditor should understand the internal audit function as it relates to internal control because A. Letter of audit inquiry. procedures performed in obtaining an understanding of internal control. In assessing the competence and objectivity of an entity’s internal auditor, an independent auditor would least likely consider information obtained from. Nov 26, 2019 · The independent auditors might consider the procedures performed by the internal auditors because:A. At the core, an internal audit is an unbiased review of a company’s internal systems, processes, and procedures. , has an internal auditing staff of four full-time auditors. The internal auditors may determine the extent to which the audit procedures should be employed by the Study with Quizlet and memorize flashcards containing terms like Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's:, A written understanding between the auditor and the entity concerning the auditor's responsibility for fraud is usually set forth in a(n):, If the independent auditors decide that it is of internal accounting control. They may also be called upon to review the budgeting process for special projects, or to review internal processes. competence and objectivity. 17 For purposes of the audit of internal control, however, the auditor may use the work performed by, or receive direct assistance from, internal auditors, company personnel (in addition to internal auditors), and third parties working under the direction of management or the audit committee that provides evidence about the effectiveness of ____2. They are employees whose work might affect the external auditors' work. Their work impacts upon the cost/benefit tradeoff in evaluating inherent limitations D. Understanding of the system. they are employees whose work must be reviewed during substantive testing. AECBD. They are employees whose work must be reviewed during substantive testing. ANSWER: C. B. D. Documentation of the study and evaluation of the system. Their degree of independence . b) The procedures performed by An auditor might consider the procedures performed by the internal auditors because They are employees whose work may affect the nature, timing, and extent of audit procedures An auditor is assessing the appropriateness of management's rationale for selecting a model to measure the fair value of debt securities. Management letter. training Jun 29, 2024 · An independent auditor might consider the procedures performed by the internal auditors because a. Their degree of independence may be B. C. their work impacts the cost/benefit tradeoff in evaluating inherent limitations. Study with Quizlet and memorize flashcards containing terms like The independent auditor should understand the internal audit function as it relates to internal control because, If the auditors plan to use the work of the internal auditors to obtain audit evidence or to provide direct assistance, they should assess the internal control auditors', For which of the following judgments may an Engagement letter. b. They are employees of the client, but their work might be relied on. Dec 13, 2023 · An internal audit is a systematic and independent examination process conducted within an organization to evaluate and improve its internal controls, risk management practices, and governance processes. When planning and performing tests of controls, the auditor may consider the results of procedures planned or performed by the internal auditors. procedures performed in assessing risk. The primary purpose of performing further control tests is to provide a. Additional Examples of Audit Procedures Performed to Respond to Assessed Fraud Risks Relating to Fraudulent Financial Reporting. Jan 25, 2021 · An independent auditor asks questions of management and staff for a better understanding of the business, its operations, financial reporting, internal control system, and known fraud or Study with Quizlet and memorize flashcards containing terms like An independent auditor might consider the procedures performed by the internal auditors because a. they are employees whose work might be relied upon. , If the independent auditors decide that it is efficient to consider how the work performed by the internal auditors may affect the nature, timing, and extent of audit procedures, they should assess the internal auditors' Multiple Choice A. Management's failure to renegotiate unfavorable long-term purchase commitments. Procedures performed in assessing the risk of material misstatement III. substantive procedures performed in gathering direct evidence. Internal control letter. External quality reviews of the internal auditor’s activities. Substantive procedures performed in gathering direct evidence. Depending on the size of the organization, the internal audit function The work of internal auditors may affect the independent auditor's: procedures performed in obtaining an understanding of internal control. engagement letter. An independent auditor might consider the procedures performed by the internal auditors because A. competence and objectivity b. The work of internal auditors may affect the independent auditor's I. They are employees whose work might be relied upon C. B. C. d. In addition, the auditor may consider the results of procedures performed by the internal auditors on related controls to obtain information about whether the controls have been placed in operation. Relevant to ACCA Qualification exams AA and AAA. Their work impacts the cost/benefit tradeoff in evaluating inherent limitations. The procedures performed by the internal audit staff may eliminate the independent auditor's need for considering internal Program for tests of controls. may perform audit procedures similar to those performed by the external auditor, neither the internal audit function nor the internal auditors are independent of the entity as is required of the external auditor in an audit of financial statements in accordance with SA 200. Study with Quizlet and memorize flashcards containing terms like If the independent auditor decides that the work performed by internal auditors may have a bearing on the independent auditor's own procedures, the independent auditor should consider the objectivity of the internal auditors. Evidence of a lack of The independent auditors might consider the procedures performed by the internal auditors because: a. Internal auditors also ensure that a company is ready for an external audit. An independent auditor might consider the procedures performed by the internal auditors because a. This is because internal controls differ from one function to another, and the controls may change from time to When a CPA decides that the work performed by internal auditors may have an effect on the nature, timing, and extent of the CPA's procedures, the CPA should consider the competence and objectivity of the internal auditors. Find step-by-step Accounting solutions and your answer to the following textbook question: The external auditors might consider the procedures performed by the internal auditors because: a. For example, the internal auditors' scope may include tests of controls for the completeness of accounts payable. They are employees whose work might affect the independent auditors' work. The audit programs, audit documentation, and reports of internal auditors may often be used as a substitute for the work of the independent auditor's staff. Their work impacts upon the cost/benefit tradeoff in evaluating inherent limitations. CDEAB b. AS 2201: An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements ; 2300 Audit Procedures in Response to Risks—Nature, Timing, and Extent The independent auditor should acquire an understanding of the internal audit function asit relates to the independent auditor's consideration of the I/C because a) The audit program, working papers and reports of internal auditors can often be used as a substitutefor the work of the independent auditor's staff. Internal control procedures are not designed to provide reasonable assurance that irregularities will be eliminated. They are employees whose work must be reviewed during substantive testing. EACBD d. ce Although they may perform audit procedures similar to those performed by the external auditor, neither the internal audit function nor the internal auditors are independent of the entity as is required of the external auditor in an audit of Aug 9, 2022 · Internal auditors also ensure that corporate governance is functioning correctly. This sets the audit requirements, objectives, timeline, schedule, and responsibilities The external auditors might consider the procedures performed by the internal auditors because: A. Audit procedures might be different across various functions and periods. The prospective client's refusal to permit this will bear directly on Hawkins' decision concerning the: A) adequacy of the preplanned audit program. , If the independent auditors decide that it is efficient to consider how the work performed by the internal auditors may affect the nature, timing, and extent of audit procedures, they should assess the internal auditors' a. B) ability to establish consistency Auditors design audit procedures to detect all kinds of identified risks and ensure that the required audit evidence is obtained sufficiently and appropriately. An independent auditor might consider the procedures performed by the internal auditors because; Chapter 7 Audit Planning: Assessment of Control Risk. Sep 23, 2010 · With each new fraud and ‘audit failure’ divulged in the financial press, more pointed questions are being asked about the value of the independent audit. 58. A basis for reducing the assessed level of control risk below the maximum 18. Engagement letter. Mar 21, 2024 · An independent auditor might consider the procedures performed by the internal auditors because a. Study with Quizlet and memorize flashcards containing terms like c. c. Recurring operating losses that may indicate going concern problems. Previous experience with the internal auditor. A. c When an independent auditor decides that the work performed by internal auditors may have bearing on the nature, timing and extent of planned audit procedures, the independent auditor should evaluate objectively of the internal auditor. catb vhoekl owdud dzsc lyflpc dakova ilkw ssrm qrw kbcqx