Narratives flowcharts and internal control questionnaires are three common

Narratives flowcharts and internal control

This preview shows page 6 - 8 out of 18 pages.

36) Narratives, flowcharts, and internal control questionnaires are three common methods of:A) testing the internal controls.B) documenting the auditor's understanding of internal controls.C) designing the audit manual and procedures.D) documenting the auditor's understanding of a client's organizational structure.Answer: B37) When dealing with the documentation of internal control:38) Audit evidence regarding the separation of duties is normally best obtained by:39) The person responsible for reconciling sales invoices to customer orders does not access to the company's master price list in order to correctly compute sales. This is an example of a(n):40) You are performing the audit of internal control for Clifton Company. Which of the following would represent a material weakness in internal control?A) The company's audit committee has experienced unusual turnover of members.B) The company's CFO was indicted for embezzling from the company.C) Bank reconciliations are done monthly.D) The CEO retired after twenty years of service to the company.Answer: B41) The employee in charge of authorizing credit to the company's customers does not fully understand the concept of credit risk. This lack of knowledge would constitute:42) When assessing whether the financial statements are auditable, the auditor must consider:
Background image
Background image
Image of page 8

You've reached the end of your free preview.

Want to read all 18 pages?

  • Spring '10
  • PEKDEMIR
  • Auditing, Vize Sonrası, After Midterm

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes