[CPApracticer]

Hi Everyone,

I was studying audit and came into some difficulty with these 3 questions, however I do not have the answer key at the moment, can anyone please help, I would greatly appreciate it. Thank you.

For which of the following internal controls would and auditor be least likely to perform tests of internal?

For which of the following internal controls would an auditor be least likely to perform tests of internal controls closer to the “as of” date?

(A) withdrawals from federal bank of more than $5 million must include a manager’s signature

(B) at the end of each day at federal bank, the total cash in the vault is reconciled with daily registers of deposits and withdrawals

(C) federal bank has just started establishing trusts for its customers and it has only set up ten. Before making an investment for a trust, bank employees must verify that the investment is in accordance with stated investment policies

(D) On an annual basis, Federal Bank management performs credit checks on its loan customers before determining the value of loans it will not be able to collect on

Which of the following statements included in management’s assessment of the effectiveness of internal control over financial reporting would be considered acceptable for issuing an unqualified opinion?

(A) nothing has come to management’s attention to suggest that the company’s internal control is less than effective

(B) statements suggesting only negative assurance

(C) a conclusion that the company’s internal control over financial reporting is effective when a material weakness exists at the end of the reporting period

(D) disclosure of material weaknesses corrected during the period

A high detection risk strategy includes all of the following except

a. interim testing

b. reduced testing of transactions

c. heavy reliance on analytical procedures as substantive procedures

d. audit work only completed at year end

F: 54 (4/13) 60 (4/14) 67 (9/14) 66 (10/14) 63 (11/15) 79 (2/16) PASSED
A: 60 (5/13) 80 (4/16) PASSED
R: 60 (7/13) 61 (2/15) 70 (4/15) 77 (7/15) PASSED
B: (6/16)

[CPApracticer]

bump, anyone know?

F: 54 (4/13) 60 (4/14) 67 (9/14) 66 (10/14) 63 (11/15) 79 (2/16) PASSED
A: 60 (5/13) 80 (4/16) PASSED
R: 60 (7/13) 61 (2/15) 70 (4/15) 77 (7/15) PASSED
B: (6/16)

[Yvonne570]

This is a lot to cover in 1 post; which are 3 different areas that are important to understand with auditing.

1) For which of the following internal controls would an auditor be least likely to perform tests of internal controls closer to the “as of” date? ****think about it. As of date is towards the end. What would be a final test in this case? In addition, what would be a subsequent item to test that is not available until after year end?

(A) withdrawals from federal bank of more than $5 million must include a manager's signature

(B) at the end of each day at federal bank, the total cash in the vault is reconciled with daily registers of deposits and withdrawals

(C) federal bank has just started establishing trusts for its customers and it has only set up ten. Before making an investment for a trust, bank employees must verify that the investment is in accordance with stated investment policies

(D) On an annual basis, Federal Bank management performs credit checks on its loan customers before determining the value of loans it will not be able to collect on

Which of the following statements included in management’s assessment of the effectiveness of internal control over financial reporting would be considered acceptable for issuing an unqualified opinion? ***Very important to understand the reports and wording – I recommend typing each report and then this should hopefully help.

(A) nothing has come to management's attention to suggest that the company's internal control is less than effective

(B) statements suggesting only negative assurance

(C) a conclusion that the company's internal control over financial reporting is effective when a material weakness exists at the end of the reporting period

(D) disclosure of material weaknesses corrected during the period

A high detection risk strategy includes all of the following except (High DR means less audit work – lower CR and IR)

a. interim testing

b. reduced testing of transactions

c. heavy reliance on analytical procedures as substantive procedures

d. audit work only completed at year end

Instead of giving answers, I hope to empower you to review the information and see what answer you feel is correct.

AUD - Passed:)
FAR - Passed:)
REG - Retake TBD
BEC - Missed by 3 points Retake TBD

[CPApracticer]

For #1, I took ur advice, im thinking its either C or D, I am learning towards D.

For #2, I am almost certain it is D, but I want to make sure.

For #3 This one i also think is D, but i am not confident

Can you please verify my answers, as i do not have an answer key. you are the perfect person that can help me, since you past audit. Also, I have been out of school for a long time and do not have any tutors. Thank you for your consideration.

F: 54 (4/13) 60 (4/14) 67 (9/14) 66 (10/14) 63 (11/15) 79 (2/16) PASSED
A: 60 (5/13) 80 (4/16) PASSED
R: 60 (7/13) 61 (2/15) 70 (4/15) 77 (7/15) PASSED
B: (6/16)

[Author]

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