looking for help please, will give thumbs up
During the audit of South Enterprises, one of the audit staff associates working on the engagement, Mike, is discussing how the client's internal controls are actually tested by the auditors with his supervisor, Sarah. Mike asks Sarah to provide some examples of procedures the auditors might conduct in order to gather evidence on the effectiveness of internal control. Which of the following examples represent procedures an auditor might conduct in order to test internal controls? (Select all that apply.) An audit staff associate is assigned the task of counting the client's inventory, which is matched to the client's inventory records: The client provides documentation to the external auditors of accounts payable transactions and associated credit terms. The internal auditors agree to complete the audit of all stockholder's equity accounts, and provide details of the audit to the external auditors. An audit manager observes the accounts receivable function performing their daily tasks and documents this accordingly. Martha, the audit manager assigned to the attestation engagement of Greenleaf Enterprises is discussing sample size with a new audit staff associate, Johnny. Johnny is working on his first audit, and is confused as to why all sample sizes are not the same for different accounts. Martha explains that the determination of sample size depends on a number of factors. Which of the following represents factors that may cause an adjustment in sample size? (Select all that opply.) Martha explains that the aggressiveness of management in setting goals for the firm, as well as the perceived independence of the board of directors affect sample sizes for large firms. Martha explains to Johnny that auditors typically determine what they consider to be a tolerable deviation rate. Martha advises Johnny that in some cases, the auditor seeks higher levels of assurance, particularly for accounts with higher inherent risk. Martha advises Johnny that regardless of the population size, the auditor typically maintains the same sample size in order to assurance consistency across the audit. lanice and Derek, two audit managers working for Jeter CPA Firm are at lunch, and are discussing some of the tests of controls they ecently performed on one of their largest audit clients. Janice notes that during the course of the audit, there were some issues noted with the client's controls. Which of the following represent scenarios whereby an exception would be noted with respect to the client's controls? (Select all that apply.) An audit staff associate working on the audit of bonds payable and the associated interest accounts noted that interest accruals were not always recorded correctly. An audit manager had conducted a separate, independent bank reconciliation for one of the client's major bank accounts, and was able to account for all transactions. An audit intern working on the audit of the revenue-receivables cycle noted that the client's collection of accounts receivable was higher than in previous years. An audit staff associate reported that an exception list of transactions that had not been processed appeared to be assigned to the wrong client staff member. Sally and Warren, two audit managers assigned to the audit of Blade Enterprises, a regional distributor of knives and other cutlery products throughout the southwestern United States are discussing various ways to document their tests of internal controls with Kendra, a recent college graduate and addition to the firm. Kendra has heard about working papers being used by the auditors for this purpose, and asks Sally and Warren for examples of what might be found in such working papers. Which of the following represent examples of what might be found in these working papers? (Select all that apply.) Details of written notifications sent to those charged with governance, documenting the state of the client's system of internal controls and what recommendations the auditors have made to fix any issues. Details of substantive procedures, including tests of details, performed on the client's system of internal control. Whether the auditors performing the tests of controls believe that the results obtained support the purpose of testing The particular controls that were selected for testing, and the results of the tests themselves
