During the audit of a private companys financial statements which of the

During the audit of a private companys financial

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47.During the audit of a private company's financial statements, which of the following statements best describes the minimum work an auditor must perform in connection with a company's internal control?A.Perform exhaustive tests of accounting controls and evaluate the company's control system effectiveness.B.Determine whether the company's control policies are designed well enough to prevent material misstatements.C.Prepare auditing working papers that document the auditor's understanding of the company's internal control.D.Design procedures to search for significant deficiencies in the actual operation of the company's internal control.48.Which of the following would most likely be classified as a material weakness? 49.If a control total were to be computed on each of the following data items, which would best be identified as a hash total for a payroll IT application?
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50.Generally accepted auditing standards (GAAS) give auditors considerable discretion to decide the amount of work required to satisfy auditing standards guiding internal control evaluation and related audit planning. Which of the following descriptions best expresses the minimum amount of work permitted by GAAS for nonpublic companies? Do not obtain an understanding of client environment, accounting, or control activities. Do not document the decision to assess control risk at maximum. Perform 100% substantive audit on all financial statement transactions and balances.Obtain an understanding of client environment, accounting, and control activities, and perform detail tests of controls. Document the decision to assess control risk below the maximum. Perform restricted substantive audit on financial statement transactions and balances, considering the control risk assessment.
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  • Spring '12
  • janigrt

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