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Questions and Answers
What is the auditor required to obtain an understanding of, according to PSA 315 paragraph 24 (Revised 2019)?
What is the auditor required to obtain an understanding of, according to PSA 315 paragraph 24 (Revised 2019)?
- The entity's management accounting information
- The entity's financial statements preparation process
- The entity's risk assessment procedures
- The entity's internal control monitoring process (correct)
In less complex entities, what is the focus of the auditor's understanding of the entity's process to monitor the system of internal control?
In less complex entities, what is the focus of the auditor's understanding of the entity's process to monitor the system of internal control?
- Involvement of management or owner-manager in operations (correct)
- Prevention of control deficiencies
- Formal monitoring processes
- Complaints from customers
What may alert the owner-manager to issues with the timing of when customer payments are being recognized in the accounting records in owner-manager entities?
What may alert the owner-manager to issues with the timing of when customer payments are being recognized in the accounting records in owner-manager entities?
- Employee turnover rate
- Inaccuracies in monthly statements (correct)
- Delayed shipments to customers
- Customer complaints about product quality
For entities with no formal process for monitoring the system of internal control, what does understanding the process include?
For entities with no formal process for monitoring the system of internal control, what does understanding the process include?
What aspects of the entity’s process does the auditor need to understand, according to PSA 315 paragraph 24 (Revised 2019)?
What aspects of the entity’s process does the auditor need to understand, according to PSA 315 paragraph 24 (Revised 2019)?
What is often focused on in less complex entities' process to monitor the system of internal control?
What is often focused on in less complex entities' process to monitor the system of internal control?
What should the auditor consider regarding the design of the monitoring activities?
What should the auditor consider regarding the design of the monitoring activities?
In what way should the results of the monitoring activities be evaluated?
In what way should the results of the monitoring activities be evaluated?
What might be considered by the auditor regarding the entity's process to monitor the system of internal control in relation to IT?
What might be considered by the auditor regarding the entity's process to monitor the system of internal control in relation to IT?
What does ISA 610 (Revised 2013) apply to?
What does ISA 610 (Revised 2013) apply to?
What helps the auditor obtain an understanding of the nature of the internal audit function's responsibilities?
What helps the auditor obtain an understanding of the nature of the internal audit function's responsibilities?
What can provide information that is directly relevant to the auditor's identification and assessment of the risks of material misstatement?
What can provide information that is directly relevant to the auditor's identification and assessment of the risks of material misstatement?
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