REVIEW QUESTIONS1 Companies with good governance are less risky to audit.'Expand this statement to justify the relevance of good governance to audit.2 All companies have accounting systems to ensure all valid transactions are properlyrecorded within a timely period. In order to accomplish company's objectives, describethe common control activities that the company may implement in their accountingsystems.3 Rafi works at TBG Cinema. Sells the tickets and also ushers customers into thecinema halls. The standard procedure requires Rafi to tear the tickets, give one-half tothe customer, and keep the other half for record. In order to control cash receipts, themanager will compare each night's cash receipts with the number of ticket stubs onhand.Identify the internal control weakness in this situation. How can this situation beimproved?

Answered: "Companies with good governance are…

"Companies with good governance are less risky to audit.' Expand this statement to justify the relevance of good governance to audit,

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 26RQSC

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{Auditing} 7. Assume, Mr. Anwar is appointed as an auditor in Al-Noor Company. He intends to understand the mind set of managers and owners in the company. From the following options choose the evaluation tool which may assist auditor to understand the managers and owners: a. Test Control b. Interview employees c. Observe process d. None of the options
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