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npeelman npeelman
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5 years ago
A) Step one in the auditor's study and evaluation of internal control is obtain understanding of internal control for audit planning purposes. List each of the remaining steps.

B) Once the auditor has an understanding of internal control, two assessments are made. List each assessment that must be made prior to testing controls.

C) Describe five common procedures an auditor can use to obtain an understanding of internal control design.
Textbook 

Auditing: The Art and Science of Assurance Engagements, Canadian Edition


Edition: 12th
Authors:
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victroxvictrox
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5 years ago
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More questions for this book are available here
A) The remaining steps are:
2. Evaluate the design effectiveness of controls.
3. Assess control risk.
4. Identify and assess risk of material misstatement.
5. Design tests of control.
6. Test controls
7. Evaluate results of tests of controls.
B) The assessments are:
• Assess whether the financial statements are auditable.
• Consider design effectiveness of controls.
C) The five procedures used to obtain an understanding of the client's internal control design are:
• Update and evaluate the auditor's previous experience with the entity.
• Make inquiries of client personnel.
• Read the client's policy and systems manuals.
• Examine documents and records.
• Observe activities and operations at the client's place of business.
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npeelman Author
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5 years ago
This helped my grade so much Perfect
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Brilliant
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Good timing, thanks!
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