ACCT 3222 Wiley Exam 2 Questions With 100% Correct Answers 2024, Exams of Advanced Education

Download ACCT 3222 Wiley Exam 2 Questions With 100% Correct Answers 2024 and more Exams Advanced Education in PDF only on Docsity! ACCT 3222 Wiley Exam 2 Questions With 100% Correct Answers 2024 Testing Internal Controls: _____________________ reperforming the control to test its effectiveness (bank reconciliation) - Correct Answer-Reperformance Testing Internal Controls: _____________________ use questioning skills to determine how the control is completed and whether it was done properly and timely - Correct Answer-Inquiry Testing Internal Controls: _____________________ inspecting initials and dates on a bank reconciliation (looking at documents) - Correct Answer-Inspection of Physical Evidence pg. 1 professoraxe l Testing Internal Controls: _____________________ watching the actual control being performed - Correct Answer-Observation Testing Internal Controls: _____________________ running test transactions through IT system to - Correct Answer-ADA Which controls SHOULD be tested? - Correct Answer-Factors to consider: -Points at which error or fraud can occur -nature of control implemented by mgmt -changes in volume of transactions -changes in design of controls -changes in key personnel pg. 2 professoraxe l an audit testing strategy that can be used to allow evidence in prior audit periods to support a conclusion about IT application controls in the current audit period - Correct Answer-benchmarking a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and corrected on a timely basis - Correct Answer-material weakness a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance - Correct Answer-significant weakness If an auditor finds a significant weakness or control deficiency the auditor can issue a _______________________ - Correct Answer-unqualified opinion on ICFR If an auditor finds a material weakness, the auditor will issue a ___________________________ if it's not fixed by the balance sheet date - Correct Answer-adverse opinion on ICFR pg. 5 professoraxe l In a management letter, an auditor must communicate material weaknesses and significant weaknesses to mgmt. All control deficiencies should also be reported either written or verbal - Correct Answer- For PUBLIC COMPANIES: ______________________ opinion states that the client maintained effective ICs. No material weaknesses in IC (CLEAN) - Correct Answer-Unqualified opinion For PUBLIC COMPANIES: ______________________ opinion states that the client did NOT maintain effective ICs pg. 6 professoraxe l 1 or more material weaknesses - Correct Answer-adverse opinion For PUBLIC COMPANIES: ______________________ opinion that states there was material scope limitation couldn't do our work "no opinion" - Correct Answer-Disclaimer Can you have an unqualified opinion on FS and an adverse opinion on ICs? - Correct Answer-Yes Can you have a qualified opinion on FS and an unqualified on IC? - Correct Answer-No SOC 1 Type 2 Report: ______________________ pg. 7 professoraxe l