requires a report of internal control effectiveness by the management of the organization Multiple Choice the AICPA. the auditors. the Sarbanes-Oxley Act of 2002. the PCAOB. is not one of the three factors that would increase the probability of fraud. Multiple Choice o o Motive Rationalization o Lack of training a Opportunity Mark Kohn, CPA, is performing tests of controls on his client's cash disbursements procedures. He discovered that there is no audit trail that provides evidence in the process. Mark would test the activities by Multiple Choice confirmation and observation. LO O O observation and inquiry. inquiry and analytical procedures. analytical procedures and confirmation. Which of the following control will fulfill the completeness assertion? Multiple Choice Prenumbering invoices, shipping documents, and sales orders. Sales are dated by the computer to ensure it is included in the proper period. The sale is to a customer on the approved customer list. Sales orders are approved by the credit department prior to shipping goods. Which of the following best describes the main reason independent auditors report on management's financial statements? Multiple Choice 10 0 Management fraud may exist and it is likely to be detected by independent auditors. Misstated account balances may be corrected as the result of the independent audit work. The management that prepares the statements may have a poorly designed system of internal control. 0 0 The management that prepares the statements and the persons who use the statements may have conflicting interests.