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Information system Final exam

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Question;ACL is an example ofAnswerAn EDI software packageAn IT software packageSoftware that allows auditors to retrieve data from client systemsA type of networkingFor an engagement in which the auditor performs a set of agreed-upon procedures, the auditor should do any of the following exceptAnswerCompare the procedures to be applied to the specified users? written requirementsDiscuss the procedures with a representative of the usersPerform procedures similar to those applied in a review engagementReview contracts or correspondence from the specified usersBefore issuing a report on the compilation of?nancial statements of a nonpublic entity, the accountant shouldAnswerApply analytical procedures to selected financial data to discover any material misstatementsCorroborate at least a sample of the assertions management has embodied in the financial statementsInquire of the client?s personnel whether the financial statements omit substantially all disclosuresRead the financial statements to consider whether the financial statements are free from obvious material errorsWhen an auditor reports on?nancial statements prepared on an entity?s income tax basis, the auditor?sreport shouldAnswerDisclose that the statements are not intended to conform with generally accepted accounting principlesDisclaim an opinion on whether the statements were examined in accordance with generally acceptedauditing standardsNot express an opinion on whether the statements are presented in conformity with the comprehensivebasis of accounting usedInclude an explanation of how the results of operations differ from the cash receipts and disbursementsbasis of accountingAn auditor will use the IT test data method in order to gain certain assurances with respect to theAnswerInput dataMachine capacityProcedures contained within the programDegree of keypunching accuracyAn auditor?s study and evaluation of the internal accounting control system made in connection with anannual audit is usually not suficient to express an opinion on an entity?s system becauseAnswerThe evaluation of weaknesses is subjective enough that an auditor should not express an opinion on theinternal accounting controls aloneThe audit cost-benefit relationship permits an auditor to express only reasonable assurance that the systemoperates as designedManagement may change the internal accounting controls to correct weaknessesOnly those controls on which an auditor intends to rely are reviewed, tested, and evaluatedApply analytical procedures to selected financial data to discover any material misstatementsCorroborate at least a sample of the assertions management has embodied in the financial statementsInquire of the client?s personnel whether the financial statements omit substantially all disclosuresRead the financial statements to consider whether the financial statements are free from obvious material errorsWhen an auditor reports on?nancial statements prepared on an entity?s income tax basis, the auditor?sreport shouldAnswerDisclose that the statements are not intended to conform with generally accepted accounting principlesDisclaim an opinion on whether the statements were examined in accordance with generally acceptedauditing standardsNot express an opinion on whether the statements are presented in conformity with the comprehensivebasis of accounting usedInclude an explanation of how the results of operations differ from the cash receipts and disbursementsbasis of accountingAn auditor will use the IT test data method in order to gain certain assurances with respect to theAnswerInput dataMachine capacityProcedures contained within the programDegree of keypunching accuracyAn auditor?s study and evaluation of the internal accounting control system made in connection with anannual audit is usually not suficient to express an opinion on an entity?s system becauseAnswerThe evaluation of weaknesses is subjective enough that an auditor should not express an opinion on theinternal accounting controls aloneThe audit cost-benefit relationship permits an auditor to express only reasonable assurance that the systemoperates as designedManagement may change the internal accounting controls to correct weaknessesOnly those controls on which an auditor intends to rely are reviewed, tested, and evaluated

 

Paper#37056 | Written in 18-Jul-2015

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