ACCT 401 Unit 9
fully solved &
updated
A secondary result of the auditor's understanding of internal control
for a nonissuer is that the understanding may
a. Provide a basis for determining the nature, timing, and extent of
audit tests
b. Assure that management's procedures to detect fraud are
properly functioning
c. Bring to the auditor's attention possible control conditions
required to be communicated to the client
d. Develop evidence to support the assessed risks of material
misstatement - answer c. Bring to the auditor's attention possible
control conditions required to be communicated to the client
The secondary result of considering internal control
Which of the following issues related to internal control over
financial reporting are required to be communicated in writing to
management and those charged with governance?
I. Deficiencies in internal control
II. Significant deficiencies
III. Material weaknesses
, a. I, II, and III
b. II and III only
c. III only
d. None - answer b. II and III only
The control issues required to be communicated in writing to
management and those charged with governance
Which of the following best describes the responsibility of an
auditor of a private entity with respect to significant deficiencies
and material weaknesses under AU-265, Communication of Internal
Control Related Matters Identified in an Audit?
a. The auditor need not report the conditions if those charged with
governance know of them
b. The auditor must exercise due diligence in searching for
significant deficiencies and material weaknesses
c. The communication by the auditor must be in writing
d. The auditor's report is a general -use report and may be
distributed to the shareholders - answer c. The communication by
the auditor must be in writing
The best description of the auditor's responsibility for significant
deficiencies and material weaknesses
When communicating significant deficiencies in internal control
noted in a financial statement audit of a nonissuer, the
communication should indicate that
a. Fraud or errors may occur and not be detected because of the
inherent limitations of internal control
fully solved &
updated
A secondary result of the auditor's understanding of internal control
for a nonissuer is that the understanding may
a. Provide a basis for determining the nature, timing, and extent of
audit tests
b. Assure that management's procedures to detect fraud are
properly functioning
c. Bring to the auditor's attention possible control conditions
required to be communicated to the client
d. Develop evidence to support the assessed risks of material
misstatement - answer c. Bring to the auditor's attention possible
control conditions required to be communicated to the client
The secondary result of considering internal control
Which of the following issues related to internal control over
financial reporting are required to be communicated in writing to
management and those charged with governance?
I. Deficiencies in internal control
II. Significant deficiencies
III. Material weaknesses
, a. I, II, and III
b. II and III only
c. III only
d. None - answer b. II and III only
The control issues required to be communicated in writing to
management and those charged with governance
Which of the following best describes the responsibility of an
auditor of a private entity with respect to significant deficiencies
and material weaknesses under AU-265, Communication of Internal
Control Related Matters Identified in an Audit?
a. The auditor need not report the conditions if those charged with
governance know of them
b. The auditor must exercise due diligence in searching for
significant deficiencies and material weaknesses
c. The communication by the auditor must be in writing
d. The auditor's report is a general -use report and may be
distributed to the shareholders - answer c. The communication by
the auditor must be in writing
The best description of the auditor's responsibility for significant
deficiencies and material weaknesses
When communicating significant deficiencies in internal control
noted in a financial statement audit of a nonissuer, the
communication should indicate that
a. Fraud or errors may occur and not be detected because of the
inherent limitations of internal control
