Exam 18: Integrated Audits of Public Companies

A material weakness involves a reasonable possibility that what size misstatement will not be prevented or detected?

The existence of a material weakness led to an adverse opinion in the internal control audit report of a publicly traded company.Which of the following statements is correct if management believes that it has remediated the weakness?

Which of the following is a weakness in internal control that allows a reasonable possibility that a significant (but less than material)misstatement may occur and not be detected?

A material weakness caused by ineffective oversight of the external financial reporting function by the audit committee will ordinarily result in communication to:   The Stock Exchange That the Company is Listed On A- Yes Yes B- Yes No C- No Yes D- No No

Walk-throughs provide evidence that helps the auditor to: Evaluate design effectiveness of Confirm whether controls have been placed controls in operation A- Yes Yes B- Yes No C- No Yes D- No No

Section 404 of the Sarbanes-Oxley Act of 2002 includes internal control reporting requirements for both management and auditors.

An auditor identified a material weakness in internal control in August.The client was informed and the client corrected the material weakness prior to year-end (December 31);the auditor agrees that the correction eliminated the material weakness prior to year-end.The appropriate audit report on internal control under PCAOB standards on reporting on internal control is:

Which of the following fits most directly under the control activities components of the COSO IC framework?

The Sarbanes-Oxley Act shifted a majority of the responsibility for maintaining internal control from management to the auditors.

The "as of date" for internal control reporting is ordinarily the last day of the fiscal year.

An auditor identified a material weakness in internal control in December.The client was informed and the client corrected the material weakness shortly after year-end (December 31);the auditor agrees that the correction eliminated the material weakness as of January 31.The appropriate audit report on internal control under PCAOB standards on reporting on internal control is:

Consider a company whose sales are initiated by customers either through the Internet or in a retail store.Which of the following is correct?

According to PCAOB standards for reporting on internal control,performing the LIFO calculation or adjusting investments to fair value is referred to as:

Under PCAOB internal control reporting standards,what are the auditor's communication requirements to the audit committee with respect to material weaknesses?

An auditor's report on internal control ordinarily includes negative assurance on the effectiveness of internal control.

A circumstance caused scope limitation in a Sarbanes-Oxley 404 internal control audit is most likely to result in a(n):

The minimum likelihood of loss involved in the consideration of a possible significant deficiency is:

Which must management communicate to the audit committee? Known Material Weakn?esses Known Significant Deficiencies A- Yes Yes B- Yes No C- No Yes D- No No

The amount involved with a significant deficiency is at least

Based on PCAOB standards for an internal control audit,which of the following is least likely to indicate a significant deficiency relating to a client's antifraud programs?