Auditing

1 Why is it important to plan an audit? Identify the steps involved in planning the audit?

2. An audit may be organized around cycles. List and describe 4 major transaction cycles.

3. What are internal controls? Why are they important during an audit?

4. What are the requirements of Section 404a of the Sarbanes-Oxley Act of 2002?

5. What are the requirements of Section 404b of the Sarbanes-Oxley Act of 2002?

6. What are the responsibilities of management regarding internal controls?

7. What is bonding of employees? List 6 other internal controls.

8. What are the auditors responsibilities related to internal controls for public companies? For non-public companies?