A) can be classified as program change controls or logical access controls. B) generally rely on the client's IT applications in some way. C) support the ongoing functioning of the programmed aspects of prevent and detect controls. D) do not rely on the client's IT environment for their operation. A) can be classified as program change controls or logical access controls. B) generally rely on the client's IT applications in some way. C) support the ongoing functioning of the programmed aspects of prevent and detect controls. D) do not rely on the client's IT environment for their operation.

Exam 8: Execution of the Audit Testing of Controls

The Committee of Sponsoring Organisations (COSO)of the Treadway Commission has produced guidance for designing and implementing effective internal controls.The 2013 framework is expected to help organisations adapt their internal control to changing business conditions.Another recent COSO publication provides guidance for organisations using cloud computing to meet their technology needs.Explain the various aspects of this guidance and critically evaluate its impact at enhancing internal controls within companies using cloud computing.

(Essay)

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Question 21

What are the factors considered by auditors in determining whether there is a need for additional detailed tests of controls?

(Essay)

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Question 22

If inherent risk is low and a reasonable level of assurance has been gained from controls testing,extensive substantive procedures need to be performed to estimate the dollar value of any error in an account balance.

(True/False)

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Question 23

The purpose of prevent controls is to discover fraud or errors that may have occurred during transaction processing and to rectify those errors.

(True/False)

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Question 24

The more complex the client's operations and its internal controls,the less experienced the auditor who performs the work needs to be.

(True/False)

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Question 25

Transaction-level controls are implemented by businesses to reduce the risk of misstatements due to error or fraud and to ensure that processes are operating effectively.

(True/False)

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Question 26

Which of the following is an example of a detect control?

(Multiple Choice)

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Question 27

Attribute sampling is a sampling technique used to reach a conclusion about the total dollar amount of misstatement in an account balance.

(True/False)

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Question 28

ASA 230 Audit Documentation requires auditors to document each stage of the audit in their working papers.What are the specific requirements in ASA 230 regarding the contents of working papers and explain the importance of auditors effectively documenting the tests of controls that they have performed?

(Essay)

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Question 29

To improve efficiency,auditors test only those controls that they believe are critical to their opinion.

(True/False)

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Question 30

Tests of controls do not include which of the following auditing techniques?

(Multiple Choice)

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Question 31

The greater the degree of reliance on an internal control,the less they test the control to provide the required assurance.

(True/False)

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Question 32

If the tests of controls confirm the auditor's preliminary evaluation of controls,the planned substantive audit procedures are:

(Multiple Choice)

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Question 33

When the auditor decides to include controls testing in their audit strategy,they select those controls that:

(Multiple Choice)

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Question 34

Manual controls:

(Multiple Choice)

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Question 35

Explain and provide examples of the various techniques commonly used when testing controls.

(Essay)

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Question 36

Tests of account balances can often provide evidence about the continued functioning of controls.

(True/False)

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Question 37

IT general controls are driven by the particular software application being used.

(True/False)

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Question 38

If the tests of controls confirm the auditor's preliminary evaluation of controls,the planned substantive audit procedures are not modified.

(True/False)

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Question 39

If inherent risk is high and no assurance has been obtained from controls testing:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 40

What are the factors considered by auditors in determining whether there is a need for additional detailed tests of controls?

If inherent risk is low and a reasonable level of assurance has been gained from controls testing,extensive substantive procedures need to be performed to estimate the dollar value of any error in an account balance.

The purpose of prevent controls is to discover fraud or errors that may have occurred during transaction processing and to rectify those errors.

The more complex the client's operations and its internal controls,the less experienced the auditor who performs the work needs to be.

Transaction-level controls are implemented by businesses to reduce the risk of misstatements due to error or fraud and to ensure that processes are operating effectively.

Which of the following is an example of a detect control?

Attribute sampling is a sampling technique used to reach a conclusion about the total dollar amount of misstatement in an account balance.

To improve efficiency,auditors test only those controls that they believe are critical to their opinion.

Tests of controls do not include which of the following auditing techniques?

The greater the degree of reliance on an internal control,the less they test the control to provide the required assurance.

If the tests of controls confirm the auditor's preliminary evaluation of controls,the planned substantive audit procedures are:

When the auditor decides to include controls testing in their audit strategy,they select those controls that:

Manual controls:

Explain and provide examples of the various techniques commonly used when testing controls.

Tests of account balances can often provide evidence about the continued functioning of controls.

IT general controls are driven by the particular software application being used.

If the tests of controls confirm the auditor's preliminary evaluation of controls,the planned substantive audit procedures are not modified.

If inherent risk is high and no assurance has been obtained from controls testing:

Introduction and Overview of Audit and Assurance

Ethics,legal Liability and Client Acceptance

Risk Assessment I

Risk Assessment II

Audit Evidence

Gaining an Understanding of the Clients System of Internal Controls

Sampling and Overview of the Risk Response Phase of the Audit

Execution of the Audit Performing Substantive Procedures

Substantive Testing and Balance Sheet Accounts

Substantive Testing and Income Statement Accounts

Completing and Reporting on the Audit

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