Exam 7: Auditing Internal Control Over Financial Reporting

CBA Associates is auditing a large publicly traded company.The audit of internal controls over financial reporting has been properly planned and the auditors have already identified controls to test using a top-down,risk-based approach.What is the next step? Give three examples of procedures that may be completed in the next step in the audit.

Which of the following audit procedures would an auditor be least likely to perform using a generalized computer audit program?

On the audit of Technology Unlimited,a leading manufacturer of computer chips,the external audit staff discovers that the internal audit staff has performed extensive evaluation and testing on the control environment.What should the external auditors do to determine the extent to which they may use the work of the internal audit staff? Can the external audit staff rely on the internal audit staff for evaluating and testing the control environment?