Why might the auditor of a nonpublic company choose to omit testing of internal controls?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing and Assurance Services Understanding the Integrated Audit

ISBN: 978-0471726340

1st edition

Authors: Karen L. Hooks

See More Books

Question Posted: Jan 21, 2015 10:26 AM

See More Questions

Why might the auditor do an account analysis and vouch selected transactions in income statement accounts such as legal expense, travel and entertainment, and other income/ expenses?
Why might the auditor choose to NOT confirm accounts receivable?
The auditor of a stock brokerage company, Roller Securities Inc., sends out negative confirmations of account details for a sample of about 50% of the stock brokerages customers, selected at random....
1. Should Sandy do exactly what the partner suggests, or risk losing the business for the firm, and perhaps her job, by suggesting a different approach? 2. What might be an alternative approach? 3....
A sample of a gaseous substance at 25oC and 0.862 atm has a density of 2.26 g/L. What is the molecular mass of the substance?
Advanced: Life cycle costing and learning curve. Fit Co. specializes in the manufacture of a small range of hi-tech products for the fitness market. They are currently considering the development of...
1. What are the characteristics of a not-for-profit entity?
High-low method Ken Howard, financial analyst at JVR Corporation, is examining the behavior of quarterly maintenance costs for budgeting purposes. Howard collects the following data on machine-hours...
On December 31, 2018, Suzuki Company issued $1,850,000 of 5% bonds. The market interest rate at the time of issuance was 3%. The bonds pay interest on June 30 and December 31 and mature in 15 years....
Richard chooses technique 0 and 2 requiring 10+10-20 efforts and provising 10+11=21 benefits. Hence, 21 is returned as the output Example 2: input1: 3 input2: (10,10,10,10) input3: (10,11,12,15)...
What is the fundamental difference in the audit purpose and reports for a public and nonpublic company?
Do you think it is necessary to prohibit all of the services on the prohibited services list in order to protect the public interest? Are there any on the list that you would permit, and why?
The following financial information is available for Cheney Corporation. The weighted average number of shares of common stock outstanding was 80,000 for 2009 and 100,000 for...
Convert the following information into: a) a semantic net b) a frame-based representation A Ford is a type of car. Bob owns two cars. Bob parks his car at home.His house is in California, which is a...
Visit www.pearsonglobaleditions.com/malhotra to read the video case and view the accompanying video. Marriott: Marketing Research Leads to Expanded Offerings highlights Marriotts success in using...
The water level in a tank is $20 \mathrm{~m}$ above the ground. A hose is connected to the bottom of the tank, and the nozzle at the end of the hose is pointed straight up. The tank cover is...
A simple experiment has long been used to demonstrate how negative pressure prevents water from being spilled out of an inverted glass. A glass that is fully filled by water and covered with a thin...
A golf ball is hit on a level fairway. When it lands, its velocity vector has rotated through an angle of 90. What was the launch angle of the golf ball? Pyo By Dyz =0 Uso Range R x max dya
A The accountant of a private company has been able to get the use of a computer to produce the spreadsheets shown below but as yet the computer lacks a program to print out final accounts. The...
Eleni Cabinet Company sold 2,200 cabinets during 2011 at $160 per cabinet. Its beginning inventory on January 1 was 130 cabinets at $56. Purchases made during the year were as follows: February . 225...
Which pair of graphs in Figure P23.82 best represents the capacitor voltage and the current through the torso as a function of time after the switch is closed? A defibrillator is designed to pass a...
When planning a financial statement audit, a CPA must understand audit risk and its components. The firm of Pack & Peck evaluates the risk of material misstatement (RMM) by disaggregating RMM into...
For each of the following situations, explain how risk of material misstatement should be assessed and what effect that assessment will have on detection risk. a. Johnson, Inc., is a fast- growing...
Management fraud (e. g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds (e. g., Enron and WorldCom) can have a significant effect on shareholders,...
Fig 1. Rolling a 4 on a D4 A four sided die (D4), shaped like a pyramid (or tetrahedron), has 4 flat surfaces opposite four corner points. A number (1, 2, 3, or 4) appears close to the edge of each...
I just need help with question #4 please! Thank you! Windsor Manufacturing uses MRP to schedule its production. Below is the Bill of Material (BOM) for Product A. The quantity needed of the part...
(25) Suppose that we have an economy consisting of two farmers, Cornelius and Wheaton, who unsurprisingly farm corn c and wheat w, respectively. Assume that both farmers produce their crop of choice...

Why might the auditor of a nonpublic company choose to omit testing of internal controls?

Question:

Step by Step Answer:

The auditor of a nonpublic company must understand the companys inf...View the full answer

Auditing and Assurance Services Understanding the Integrated Audit

Students also viewed these Auditing questions