20111020_Thursday_ Strategic Planning Issues_Answers

20111020_Thursday_ Strategic Planning Issues_Answers - SU 4...

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SU 4: Strategic Planning Issues Fall 2011
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The Auditor’s Consideration of the Internal Audit Function (AU 322) Ø 1. In assessing the competence and objectivity of an entity’s internal auditor, an independent auditor would least likely consider information obtained from A. Discussions with management personnel. B. External quality reviews of the internal auditor’s activities. C. Previous experience with the internal auditor.
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The Auditor’s Consideration of the Internal Audit Function (AU 322) Ø 2. In assessing the competence of an internal auditor, an independent CPA most likely would obtain information about the A. Quality of the internal auditor’s documentation. B. Organization’s commitment to integrity and ethical values. C. Influence of management on the scope of the internal auditor’s duties.
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The Auditor’s Consideration of the Internal Audit Function (AU 322) Ø In assessing the objectivity of internal auditors, an independent auditor should A. Evaluate the quality control program in effect for the internal auditors. B. Examine documentary evidence of the work performed by the internal auditors. C. Test a sample of the transactions and balances that the internal auditors examined. D. Determine the organizational level to which
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The Auditor’s Consideration of the Internal Audit Function (AU 322) Ø 4. For which of the following judgments may an independent auditor share responsibility with an entity’s internal auditor who is a assessed to be both competent and objective? Assessment of Assessment of Inherent Risk Control Risk A. Yes Yes B. Yes No
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The Auditor’s Consideration of the Internal Audit Function (AU 322) Ø 5. For which of the following judgments may an independent auditor share responsibility with an entity’s internal auditor who is assessed to be both competent and objective? Materiality of Evaluation of Misstatements Accounting Estimates A. Yes No B. No Yes
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The Auditor’s Consideration of the Internal Audit Function (AU 322) Ø 6. During an audit, an internal auditor may provide direct assistance to an independent CPA in Obtaining an Performing Performing Understanding of Tests of Substantive Internal Control Controls Tests A. No No No
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The Auditor’s Consideration of the Internal Audit Function (AU 322) Ø 7. An internal auditor’s work would most likely affect the nature, timing, and extent of an independent auditor’s auditing procedures when the internal auditor’s work relates to assertions about the A. Existence of contingencies. B. Valuation of intangible assets. C. Existence of fixed asset additions.
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The Auditor’s Consideration of the Internal Audit Function (AU 322) Ø 8. Miller Retailing, Inc. maintains a staff of three full-time auditors. If the work of the internal auditors is relevant to the audit, it is efficient to consider how that work may affect the audit, and the internal auditors are found to be competent and objective, the independent auditor most likely will A. Nevertheless need to make direct tests of
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This note was uploaded on 11/10/2011 for the course ACCT 3222 taught by Professor Delaune,l during the Spring '08 term at LSU.

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20111020_Thursday_ Strategic Planning Issues_Answers - SU 4...

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