role and responsibilities of the audit committee of Pastells with regard to: (i) the external audit of the company's financial statements.(ii) the internal control system and internal audit function
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- Internet Exercise: Reporting on Service Organization Controls. Search for a service organization auditor’s report on internal controls on the web. (Hint: You may have to look under the old name “SAS 70 reports.”) If you cannot find an auditor’s report, find a company’s news release describing its auditor’s service organization report. Required:a. Why do you think it is so difficult to find an actual report?b. If you found an auditor’s report, were any deficiencies noted? If so, what were they?c. Why would a service organization publicize the results of its auditor’s report?Explain the role and responsibilities of the audit committee of Pastells with regard to: (i) the external audit of the company's financial statements.(ii) the internal control system and internal audit function. Should not be copied on google or booksWhich of the following is false about accounting information systems? A. They provide reports that people analyze. B. They prevent errors and stop employees from stealing inventory. C. They are designed to gather data about the companys transactions. D. They consist of processes that involve input of data from source documents, processing, output, and storage.
- Which of the following is an attribute of the internal control procedure—assignment of responsibilities? A. The external auditors will monitor internal controls. B. The company should separate the custody of assets from accounting. C. Each position has clearly assigned responsibilities. D. To validate their accounting records, a company should have an audit by an external accountant.CPAs may audit around or through computers in the audit of the financial statements of clients who use IT to process accounting data. b. Under what conditions do CPAs decide to audit through the computer instead of around the computer?Performance Task #1. Introduction to PSA 401 Instructions: Provide for the requirements given to you below. Output must be placed in a Microsoft Word following the formats specified. Your answers must be in paragraphs and must contain first person point of view. God bless! 1. Explain the sentence "The overall objective and scope of an audit does not change in a CIS environment. However, the use of a computer changes the processing, storage and communication of financial information and may affect the accounting and internal control systems employed by the entity." 2. Explain why the auditor should have sufficient knowledge of the CIS to plan, direct, supervise and review the work performed. 3. Differentiate the process of planning the audit in a manual system and a computerized system. 4. Identify the risks of using a computerized system in the process of audit. 5. Explain the sentence "The auditor's specific audit objectives do not change whether accounting data is processed manually…
- 1. Explain how client internal controls can be improved through the proper installation of IT. 2. Distinguish between random error resulting from manual processing and systematic error resulting from IT processing and give an example of each category of error. 3. Explain what is meant by auditing around the computer, and describe what must be present for this approach to be effective in the audit of a client that uses IT to process accounting information. 4. An audit client is in the process of creating an online Web-based sales ordering system for customers to purchase products using personal credit cards for payment. Identify three risks related to an online sales system that management should consider. For each risk, identify an internal control that could be implemented to reduce that risk. 00000000000Which of the following benefits of an effective accounting information system provides safeguards for a business’s assets and reduces the likelihood of fraud and errors? Flexibility Relevance Control CompatibilityYour client has outsourced the majority of the accounting information system to a third-party data center. What impact does that have on your audit of the financial statements?
- From an IT audit perspective, Business Continuity Plan (BCP) completeness reflects the current state of operations (in other words, changes to the plan are made timely) a) True b) FalseCPAs may audit around or through computers in the examination of financial statements of clients who utilize computer to process accounting data. Required: Under what condition does the CPA decide to audit through the computer instead of around the computer?CPAs may audit around or through computers in the audit of the financial statements of clients who use IT to process accounting data. c. In auditing through the computer, CPAs may use test data. (1) What are test data? (2) Why do CPAs use test data?
