Which of the following is a possible disadvantage when the draft engagement communication is provided to local management for review and comment?
Which of the following is a possible disadvantage when the draft engagement communication is provided to local management for review and comment? Discussion of the report might center unduly on words rather than on the substantive issues. You just studied 50 terms!
Which of the following is not a way data analytics can be applied to the internal audit function?
Data analytic technologies cannot be used for substantive testing. d. Continuous auditing routines developed by internal auditors should not be shared with management. b.
Which of the following should be identified as a deficiency by an engagement supervisor who is reviewing working papers?
which of the following should be identified as a deficiency by an engagement supervisor who is reviewing working papers? generate commitment for appropriate managerial action.
Who is responsible for reviewing and approving the final engagement communication before its issuance?
The chief audit executive
The chief audit executive is responsible for reviewing and approving the final engagement communication before issuance and for deciding to whom and how it will be disseminated. When the chief audit executive delegates these duties, he or she retains overall responsibility. 2440.
What is data analytics internal audit?
Data analytics in Internal Audit – when it makes sense
Challenges around data acquisition, identifying the right internal and external resources to support, and agreeing which technology is fit for purpose are commonplace.
What are audit analytics?
Audit analytics, or audit data analytics, means the intelligence generated from reviewing audit-related information, often through the use of technology. Like other types of data analytics, audit analytics typically involve analyzing large sets of numbers (but could involve text) to find actionable audit insights.
Who is ultimately responsible for every organization’s system of internal control?
The board of directors is ultimately responsible for a company’s system of internal control. It should set appropriate policies on internal control and seek regular assurance that the system is functioning effectively. It is the role of management to implement the board’s policies on risk and control.
Who is responsible for determining the objectives for the individual audit engagement?
Chief Audit Executive’s
Internal audits may be conducted with one, two or all three of these objectives. The Chief Audit Executive’s (CAE’s) is responsible for determining the objectives for the individual audit engagements.
Which of the following does not form part of the oversight responsibilities of the audit committee?
Explanation: Planning and approving the audit plan for external auditors is not the responsibility of the audit committee registered under the SEC (Security and Exchange Commission) of the United States. Planning and approving the audit plan of the external auditor affect the independence of the external auditor.
Which of the following is not one of the components of internal control?
Compliance is one of the objectives of internal control, it is not one of the key components of internal control. Monitoring activities can include both separate activities as well as ongoing activities to evaluate the effectiveness of controls.
What are the roles of internal control?
The primary purpose of internal controls is to help safeguard an organization and further its objectives. Internal controls function to minimize risks and protect assets, ensure accuracy of records, promote operational efficiency, and encourage adherence to policies, rules, regulations, and laws.
Who is responsible for establishing and maintaining the internal control system quizlet?
The external auditor is responsible for establishing and maintaining the internal control system. Segregation of duties is an example of an internal control procedure. management. companies.
Which of the following should not be considered cash by an accountant?
Items like postdated checks, certificates of deposit, IOUs, stamps, and travel advances are not classified as cash. These would customarily be classified in accounts such as receivables, short-term investments, supplies, or prepaid expenses.
Which one of the following is NOT component of risk management?
(B) Risk reduction and (C) Risk transfer is not a component of Risk Management. Explanation: Risk reduction and Risk transfer belongs to the strategies of Risk Management and it is not a component of Risk Management.
Which of the following are limitations in internal control systems?
What are the inherent limitations of internal control?
- Reasonable Assurance. …
- Collusion by Two or More Employee. …
- Human Error. …
- Inappropriate Management Override of Controls. …
- Poor or Improper Judgment from Management. …
- Cost and Benefit Consideration. …
- Improper Communication or Training. …
- Unforeseen Circumstances.
Which of the following should not be included in cash and cash equivalents *?
Investments in liquid securities, such as stocks, bonds, and derivatives, are not included in cash and equivalents. Even though such assets may be easily turned into cash (typically with a three-day settlement period), they are still excluded. The assets are listed as investments on the balance sheet.
Which of the following would not be included with the cash and cash equivalents on the balance sheet?
Restricted cash is not reported under cash and cash equivalents on a company’s balance sheet, but instead, it is indicated in the financial statement’s notes. The items found under cash equivalent include; banker’s acceptance, commercial paper, and treasury bills.
Which of the following is not a result or characteristic of the Sarbanes Oxley Act quizlet?
Which of the following is not a result or characteristic of the Sarbanes-Oxley Act of 2002? Elimination of fraud and theft. You just studied 23 terms!