Exam 18: Integrated Audits of Public Companies

Which is least likely to be a question asked of employee personnel during a walk-through?

A client imposed scope limitation relating to the audit of internal control ordinarily results in a qualified report.

The Sarbanes-Oxley Act changed auditor association with a client's internal control from the review to the audit form of association.

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

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

The minimum likelihood of loss involved in the consideration of a possible material weakness is:

Which of the following would most likely be included in a SEC 10K filing in which a material weakness in internal control exists? Financial Statement Audit Report Intemal Control Audit Report A. Unqualified Adverse B. Unqualified Qualified C. Qualified Qualified D. Adverse Unqualified

A control deficiency that is less than a significant deficiency is most likely to result in what form of audit opinion on internal control?

The lack of effective antifraud programs is always considered a material weakness.

Which must the auditor communicate to management? Known Material Wealnesses Known Significant Deficiencies A. Yes Yes B. Yes No C. No Yes D. No No

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

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

An auditor identified a significant deficiency in internal control in December. The client was informed and the client corrected the significant deficiency shortly before year-end (December 31); the auditor agrees that the correction eliminated the significant deficiency as of December 31. The appropriate audit report on internal control under a PCAOB Standard No. 5 audit of internal control is:

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?

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?

According to PCAOB standards for reporting on internal control, calculating depreciation expense or adjusting for foreign currencies is referred to as:

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

Which of the following is a strong indicator that a material weakness in internal control exists?

Which of the following is most likely to be considered a material weakness in internal control?

The minimum likelihood of loss involved in the consideration of a control deficiency that is less than a significant deficiency is: