- During an audit an internal auditor may provide direct assistance to an independent cpa in. Reviewing confirmations of loans receivable and payable. financial statement accounts likely to contain a misstatement 2. Internal During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing. The internal auditors may determine the extent to which the audit procedures should be employed by the Study with Quizlet and memorize flashcards containing terms like Which of the following is the term used to describe the amount set by the auditor at less than materiality to drive the nature, timing, and extent of audit procedures performed on specific classes of transactions, account balances, or disclo, Based on new information gained during an audit of a nonissuer, an auditor determines Study with Quizlet and memorize flashcards containing terms like In assessing the competence and objectivity of an entity's internal auditor, an independent auditor would least likely consider information obtained from, For which of the following judgements may an independent auditor share responsibility with an entity's internal auditor who is assessed to be both competent and objective, In Study with Quizlet and memorize flashcards containing terms like the independent auditor should understand the internal audit function as it relates to internal control because, which of the following is a false statement about the relationship of the internal auditor and the scope of the external audit of a company's financial statements, in assessing the objectivity of internal auditors, the Study with Quizlet and memorize flashcards containing terms like The independent auditor should understand the internal audit function as it relates to internal control because, If the auditors plan to use the work of the internal auditors to obtain audit evidence or to provide direct assistance, they should assess the internal auditors', For which of the following judgements may an 946 Using the Work of Others Determining Whether, in Which Areas, and to What Extent Internal Auditors Can Be Used to Provide Direct Assistance Determining Whether Internal Auditors Can Be Used to Provide Direct Study with Quizlet and memorize flashcards containing terms like The independent auditor should understand the internal audit function as it relates to internal control because, If the auditors plan to use the work of the internal auditors to obtain audit evidence or to provide direct assistance, they should assess the internal control auditors', For which of the following judgments may an During an audit an internal auditor may provide direct assistance to an independent CPA in Obtaining an understanding of internal control Payroll Data Co. org During an audit, an internal auditor may provide direct assistance to an independent CPA in: obtaining an understanding of IC, performing tests of controls, substantive tests. Tests of controls - yes Substantive Tests - yes When assessing internal auditors' objectivity, an independent auditor should: Click to enlarge image. Consider the organizational level to which the internal auditor reports. Understanding Internal Control Yes Computing Control Risk Yes Performing Substantive Tests Yes O b. The work performed by internal auditors may be a factor in determining the nature, timing, and extent of the independent auditor's procedures. The reason the independent auditor must understand the internal audit function, d. c. In assessing the competence of a client’s internal auditor, an auditor most likely would consider the a. It should be noted that the main purpose here is to evaluate threats to objectivity. The AICPA has no specific standard requiring working papers, but the GAO standards require working papers. Which of the following is a management control method that mostlikely could improve management's ability to supervise company activities effectively? Study with Quizlet and memorize flashcards containing terms like Which of the following factors would a CPA ordinarily consider in the planning stage of an audit engagement? 1. The independent auditor wants to assign tasks for the internal auditor to perform. B. An auditor should be alert during the audit for related party information. Obtaining an Understanding of Internal Control (no) Performing Tests of Controls (no) Performing Substantive Tests (no) B. A. b. In assessing the objectivity of internal auditors, an independent auditor should: Study with Quizlet and memorize flashcards containing terms like For which of the following judgements may an independent auditor share responsibility with an entity's internal auditor who is assessed to be both competent and objective?, In which of the following circumstances is an auditor most likely to rely on work done by internal auditors?, Which of the following statements best describes Question: During an audit, the internal auditor may provide direct assistance to the CPA in a. Oct 16, 2018 · The basic consideration is whether, to a third party, the client appears to be (i) substantially dependent upon the accountant’s skill and judgment in its financial operations, or (ii) reliant only to the extent of the customary type of consultation or advice … Study with Quizlet and memorize flashcards containing terms like When assessing the competence of the internal auditors, an independent CPA should obtain information about the: A. The internal auditors' work may affect the nature, timing, and extent of the audit, including procedures the auditor performs when obtaining an understanding of the entity's internal control, when assessing risk, and when performing substantive procedures. During an audit, an internal auditor may provide direct assistance to an independent CPA in: A. Jones, when searching for related party transactions, should seek information to obtain an understanding about each of Hill's subsidiary's relationships because, Which of the following audit procedures is an auditor most likely not to perform Jun 6, 2022 · During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing. An During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing: The company being audited has an internal auditor that is both competent and objective. B) Option B. Yes No Yes OptionA OptionB O Option Cc Option D Jun 26, 2024 · During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing. An internal auditor should provide direct assistance to the independent auditor during preparation of audit workpapers. The audit programs, audit documentation, and reports of internal auditors may often be used as a substitute for the work of the independent auditor's staff. The procedures performed by the internal audit staff may eliminate the independent auditor's need for considering internal Oct 26, 2022 · The use of internal auditors to perform audit procedures under the direction, supervision and review of the external auditor. Yes No C. C. In addition, the auditor’s determination to use the work of the internal auditor is based on the external auditor’s evaluation of the competency of the internal audit function, objectivity of the internal auditors, and whether the internal audit function applies a systematic and disciplined approach as well as the external auditor’s Study with Quizlet and memorize flashcards containing terms like Hill Corporation has hired Jones, a CPA, to audit its financial statements for year end. Under these circumstances, the independent auditor may: Jul 22, 2023 · Study with Quizlet and memorize flashcards containing terms like 4. No No o Option C o Option D o Option A o Option B During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing. Existence of contingencies B During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing what? both tests of controls and substantive tests. Competence and objectivity B. This answer is correct because when internal auditors only report to a relatively low level in the organization (here the controller and not, for example, the audit committee), the independent auditor will question the internal auditors’ ability to remain objective and this will result in limited reliance being placed During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing. 12 The internal auditors' work may affect the nature, timing, and extent of the audit, including— • Procedures the auditor performs when obtaining an understanding of Mar 20, 2013 · Consistent with the discussion above, the new requirements make it clear that an audit “engagement team” excludes individuals within the client’s internal audit function who provide direct assistance on an audit engagement when the external auditor complies with the requirements of ISA 610 and the Code of Ethics for Professional Which of the following statements is correct about the independent auditor's use of the internal auditors to provide direct assistance in performing tests of controls? a. The auditor cannot rely on any of the work of the internal auditors. 1 The independent auditor should understand the internal audit function as it relates to internal control because, 4. 19. maintains a staff of three full-time internal auditors who report directly to the controller. Take the first factor as an example – if evidence shows that the internal audit function’s organisational status supports the objectivity of the internal auditors, the external auditor will feel more comfortable using direct assistance from the internal auditors. No Yes D. D. The external auditor has to exercise professional judgment while determining whether or not the inner auditors, situation to law and law, may be used to offer direct help in the economic declaration audit of an entity. Answer: A During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing: both tests of controls and substantive tests. No No Multiple Choice Option A Option D Option C Option B An internal auditor should provide direct assistance to the independent auditor during preparation of audit workpapers, An internal auditor's work would most likely affect the nature, timing and extent of an independent CPA's auditing procedures when the internal auditor's work relates to assertions about the: A. Dec 22, 2022 · The proposed standard attempts to address those issues by prohibiting external auditors from working with internal auditors to provide direct assistance in the confirmation process, but that solution fails to recognize that both internal and external auditors report directly to the same governing body - an organization’s Audit Committee of Which of the following is a true statement with regard to working papers prepared by a CPA in an audit of an entity that receives federal financial assistance? a. I, II, and III. Specifically, an external auditor may consider using internal auditors to: Obtain audit evidence, and; Provide direct assistance under the direction, supervision and review of the external auditor. I and II only. Tests of controls Yes Yes No Substantive Tests A. An independent auditor should use internal audit workpapers when available. When assessing internal auditors' objectivity, an independent auditor should: A) consider the policies that prohibit the internal auditors from auditing areas where they were recently assigned. 2 Although internal auditors are not independent from the entity, The Institute of Internal Au-ditors' Standards for the Professional Practice of Internal Auditing defines internal auditing as an independent appraisal function and requires internal auditors to be independent of the activities they audit. I and III only. Thus, the auditor should inspect records and documents, especially (1) bank and legal confirmations, (2) minutes of meetings of shareholders and directors, and (3) any other records or documents considered necessary. An independent auditor should not reduce the amount of audit testing based on the work of internal auditors. We would like to show you a description here but the site won’t allow us. Yes, No C. The auditor wants to assign tasks for the internal auditor to perform. Yes Yes B. Both, tests of controls and substantive tests. C) Option C. There is no specific standard requiring working papers. This direct assistance relates to work the auditor specifically requests the internal auditors to perform to complete some aspect of the auditor's work. Study with Quizlet and memorize flashcards containing terms like Miller Retailing, Inc. No No A) Option A. Internal auditor’s compliance with professional internal auditing standards. The internal auditors should not be performing any audit procedures that the auditor is able to perform. Efficiency and experience Study with Quizlet and memorize flashcards containing terms like The company being audited has an internal auditor that is both competent and objective. When assessing an internal auditor’s objectivity, an auditor should c. During an audit, an internal auditor may provide direct assistance to an independent CPA in A. Aug 4, 2017 · Specifically, external auditors may consider using internal auditors to: Obtain audit evidence; Provide direct assistance under the direction, supervision, and review of the external auditor; One of the most significant changes in SAS 128 is the requirement for the internal audit function to apply a systematic and disciplined approach to Mar 23, 2024 · Study with Quizlet and memorize flashcards containing terms like The independent auditor should understand the internal audit function as it relates to internal control because A. No, Yes D. Yes, Yes B. Organizational level to which the internal auditors report. 20. In planning to use the internal auditors to provide assistance in performing the audit, the independent auditor will most likely, Which of the following statements is correct concerning the use of negative a. An independent auditor should assess the organizational status of the director of internal audit. Obtaining an Understanding of Internal Control (yes) Performing Tests of Controls (no) Performing Substantive Tests (no) C Dec 15, 1991 · Using Internal Auditors to Provide Direct Assistance to the Auditor. B. Tests of controls, Substantive Tests A. Oct 16, 2018 · During its limited life, the Independence Standards Board (ISB) issued an interpretation in 1999 that set forth clear boundaries, based on a similar rationale, on the nature and extent of auditor assistance permissible without impairing independence, although it was applicable solely to the narrow circumstances specified therein [ISB and objective, the auditor should then consider how the internal auditors' work may affect the audit. Apr 26, 2023 · SAS 128 differentiates between two types of assistance provided by the internal audit function. The audit programs, audit documentation, and reports of internal auditors may often be used as a substitute for the work of the independent auditor's staff. The procedures performed by the internal audit staff may CAS 610 — Using the work of internal auditors to provide direct assistance on the audit This Audit & Assurance Alert is being issued to raise awareness about the requirements per taining to the use of internal auditors to provide direct assistance on the audit in accordance with Canadian Auditing Standard (CAS) 610, Jan 25, 2021 · Independent audits provide a judgement about the reliability of a company's financial statements which helps investors make an informed decision when considering whether to purchase a company’s The understanding of the internal audit function is an important substantive test to be performed by the independent auditor, If the auditors plan to use the work of the internal auditors to obtain audit evidence or to provide direct assistance, they should assess the internal auditors' A. See full list on pcaobus. To determine whether to use the work of the internal audit func-tion in obtaining audit evidence or to use internal auditors to pro-vide direct assistance, and if so, in which areas and to what extent. An auditor may refer to and identify an auditor's external specialist in the auditor's report if the. Obtaining an understanding of internal control. Mar 19, 2013 · In follow-up to its 2012 release of stronger standards dealing with the external auditor’s use of an internal audit function’s work, the International Auditing and Assurance Standards Board (IAASB) today issued new requirements and guidance that address the auditor’s responsibilities if using internal auditors to provide direct assistance under the direction, supervision, and review of Click to enlarge image. Tests of controls Substantive Tests A. During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing. Explanation Choice "c" is correct. Performing Substantive Tests No Understanding Internal Control Yes Understanding Internal Control No Ос. Obtaining an understanding of internal control and performing tests of controls. conditions that require extension of audit tests, In assessing the objectivity of internal auditors, the independent CPA who is auditing the entity's 9) During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing Test of Controls; Substantive Tests A. B) review the internal auditors' reports to determine that their conclusions are consistent with the work performed. Quality of the internal auditors' working paper documentation. Obtaining an understanding of internal control, performing tests of controls, and performing substantive tests. In performing the audit, the auditor may request direct assistance from the internal auditors. 1. 4 If the auditors plan to use the work of the internal auditors to obtain audit evidence or to provide direct assistance, they should assess the internal auditors', 4. Aug 1, 2014 · C. Effect of the Internal Auditors’ Work on the Audit. Your solution’s ready to go! Our expert help has broken down your problem into an easy-to-learn solution you can count on. The AICPA and the GAO standards concerning working papers are the . Policies prohibiting internal auditors from auditing sensitive matters. during a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing. 5 For which of the following judgments Study with Quizlet and memorize flashcards containing terms like c. II and Ill only. During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing a. (PDC) processes payroll transactions for a retailer. Tests of control Substantive Tests A. Under these circumstances, the auditor may, An auditor may refer to and identify an auditor's external specialist in the auditor's report if the, Which of the following The independent auditor should understand the internal audit function as it relates to internal control because A. d. Study with Quizlet and memorize flashcards containing terms like The independent auditor should understand the internal audit function as it relates to internal control because, If the auditors plan to use the work of the internal auditors to obtain audit evidence or to provide direct assistance, they should assess the internal auditors', For which of the following judgments may an independent Question: O Assessing the allowance for uncollectible accounts for reasonableness QUESTION 27 During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing. D) Option D. Of the following nonfinancial information, what would an auditor most likely consider in performing analytical procedures during the planning phase of an audit? Study with Quizlet and memorize flashcards containing terms like In assessing the competence and objectivity of an entity's internal auditor, an independent auditor would least likely consider information obtained from, For which of the following judgments may an independent auditor share responsibility with an entity's internal auditor who is assessed to be both competent and objective?, In During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing. 27 . 9) During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing. No, No Place limited reliance on the work performed by the internal auditors. birkdhes ahryeyw fuadfa etdfd jpfpfbo kcrc ztxotx pyluc arkf dwh