Ch 9 - Question: 1 Computer Services Company (CSC)...

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Question: 1Computer Services Company (CSC) processes payroll transactions for schools. Drake, CPA, is engaged toreport on CSC’s controls implemented as of a specific date. These controls are relevant to the schools’internal control, so Drake’s report will be useful in providing the schools’ independent auditors withinformation necessary to plan their audits. Drake’s report expressing an opinion on CSC’s controlsimplemented as of a specific date should contain a(n)C.Description of the scope and nature of Drake’s procedures.Question: 2A CPA’s understanding of internal control in a financial statement audit of a nonissuer
Question: 3An auditor expresses an unmodified opinion directly on internal control over financial reporting after anexamination integrated with a financial statement audit. As a result, the
Question: 4When engaged to express an opinion about the effectiveness of a nonissuer’s internal control over financialreporting, the auditor should
Question: 5Snow, CPA, was engaged by Master Co., a nonissuer, to examine the effectiveness of Master’s internalcontrol over financial reporting as part of an integrated audit. Snow’s report should state that
Question: 6During consideration of internal control in a financial statement audit, an auditor is notobligated to
Question: 7The Sarbanes-Oxley Act of 2002 (SOX) requires management of issuers to do all of the following except
Question: 8In reporting on an examination of an issuer’s internal control over financial reporting, an auditor shouldinclude a paragraph that describes the
Question: 9Cain Company’s management engaged Bell, CPA, to examine the effectiveness of Cain’s internal controlover financial reporting. Bell’s report, which was accompanied by management’s separate report presentingits written assertion about the effectiveness of internal control, described several material weaknesses andpotential errors and fraudulent activities that could occur. Subsequently, management included Bell’s reportin its annual report to the board of directors with a statement that the cost of correcting the weaknesseswould exceed the benefits. Bell should

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Term
Spring
Professor
PacificStaff
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