How would the following factors affect the auditor's assessment of the internal control effectiveness for marketable securities?
Question:
a. The board of directors is not actively involved in monitoring the company's policies regarding marketable securities.
b. The company has an internal audit department, but it does not have any computer audit expertise and has not conducted audits of the cash or marketable securities account during the past three years.
c. Management does not have written guidelines for investments in marketable securities. The CFO has been successful in procuring good returns on investments in the past, and management does not want to tamper with success.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
Question Posted: