Please help me with these questions.
8. Which of the following are ordinarily designed to detect possible material monetary errors in the financial statements? a. Tests of controls. b. Analytical procedures c. Computer controls d. Post-audit review of audit document a 9. Following are several statements regarding accounting records or audit documentation. Which of the statements is correct? Accounting records belong to the auditee. b. Documentation of an auditor's understanding of the entity's internal control system is not necessary. Audit documents may be regarded as a substitute for the company's accounting records. d. The independent auditor may discard audit documents after two years. c. 10. As part of gaining an initial preliminary understanding of internal control, an auditor is required to do all of the following except: Consider factors that affect the risk of material misstatement. 6. Ascertain whether internal control policies and procedures have been placed in operation Identify the types of potential misstatements that can occur. d. Obtain knowledge about the operating effectiveness of the internal control through testing. c. 11. An auditor would most likely be concerned with internal control policies and procedures that provide reasonable assurance about the c. a. a. Efficiency of management's decision-making process. b. Appropriate prices that the entity should charge for its products. Methods of assigning production tasks to employees. d. Entity's ability to accurately process and summarize financial data. 12. Which of the following statements is false? The PCAOB focuses on the financial reporting objective of internal controls. b. Management is required to base internal controls on a recognized control framework. Most U.S. companies use the internal control framework developed by COSO. d. All controls relevant to financial reporting are accounting controls. 13. According to the PCAOB, who is responsible for the reliability of the internal controls over financial reporting process of an entity? The entity's CEO and/or CFO. b. The entity's board of directors. An internal control specialist. d. The external auditor. c. a. c. 14. In the context of an audit of internal controls, the auditor must document all of the following except: The extent to which he or she relied upon work performed by others. b. The auditor's understanding and evaluation of the design of each of the components of the entity's internal control over financial reporting. Transcripts of the auditor's discussion with management concerning the points at which misstatements could occur. The evaluation of any deficiencies discovered that could result in a modification of the auditor's report. c. d. 15. Which of the following best describes the distinguishing feature of statistical sampling? It requires the examination of a smaller number of supporting documents. b. It provides a means for measuring mathematically the degree of uncertainty that results from examining only part of a population It reduces the problems associated with the auditor's judgment concerning materiality. d. It is evaluated in terms of two parameters: statistical mean and random selection. C
