Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Every audit firm has its approach for understanding a client's internal control structure. Some firms use a standardized internal control questionnaire to evaluate controls that

Every audit firm has its approach for understanding a client's internal control structure. Some firms use a standardized internal control questionnaire to evaluate controls that are in place whereas other firms do not rely on internal controls at all and plan their audits as if there are no controls in place or consider controls as not effective.

Evaluate each of these approaches to assess a client's internal controls from an external auditor's perception. Include in your evaluation:

  1. What effect, if any, does the size of the organization have on the decision?
  2. What are the auditing standard requirements for obtaining an understanding of internal controls?
  3. What are the differences, if any, in understanding internal controls for a public company versus a non-public company?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Excel Applications For Accounting Principles

Authors: Gaylord SmithBruce Walz

4th Edition

1133388027, 9781133388029

More Books

Students also viewed these Accounting questions

Question

8. What are the costs of collecting the information?

Answered: 1 week ago