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Lancaster, Inc. has an internal auditing staff of four full-time auditors. The auditor has determined that the internal auditors are competent and objective. The auditor
Lancaster, Inc. has an internal auditing staff of four full-time auditors. The auditor has determined that the internal auditors are competent and objective. The auditor may not share which of the following responsibilities with Lancasters internal auditors? A. Age accounts receivable B. Prepare the unadjusted trial balance C. Receive and prepare a confirmation schedule D. Internal auditors may help the auditors with any of the above Which of the following accounts would you most likely use PPS or Probability Proportionate to Size? A. Accounts payable where you believe there are several understated accounts B. Retained Earnings C. An account that is anticipated to have many overstatements D. None of the above If, compared to last year, the expected population deviation rate increased and the population total went from 12,000 down to 10,000, the current year sample size would A. Increase B. Decrease C. Unable to determine D. No effect on sample size since they offset Which of the following procedures would an auditor likely include in the initial planning of a financial statement audit? A. Obtain an attorney's letter B. Examining documents to detect illegal acts having a material effect on the financial statements C. Considering whether the client's accounting estimates are reasonable in the circumstances D. None of the above
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