Rodney and Co. CPA Firm is currently conducting the audit of Monington Industries, a large, nationwide client with an extremely decentralized structure. The auditors have noted that both the client’s industry and operations are extremely complex, along with the processes the client uses to transact its business. Based on this information, which of the following choices best describes the procedure the auditors are most likely to use to document their understanding of internal control?

As part of the audit of TableTop LLC, a manufacturer of high-end specialized furniture, the partners of the external auditors, CPI Auditing Inc. are meeting to discuss which audit procedures may be more appropriate in this case. The auditors are interested in learning more about the quantities of materials that go into the products sold by TableTop LLC. A method the auditor could use to achieve this would be to ________.

A major contributor to any firm’s operational and financial success is an effective system of internal control. Controls are often split into IT general controls and IT application controls. Which of the following best describes the difference between these two types of controls?

Compare the advantages and disadvantages of narratives, flowcharts, and internal control questionnaires.

What are the primary procedures auditors use in the fraud risk assessment process?

John and Caroline, two audit staff associates assigned to the audit of King Enterprises are discussing audit risk. As newly-hired employees, both John and Caroline are keen to understand more about this area and how it pertains to their jobs with the firm. Which of the following statements most accurately describes audit risk?

Which of the following statements are true regarding internal controls?

Which of the following best describes the relationship between the system of internal control and audit evidence generated by the client?

Internal control is extremely important to any organization with respect to its optimal functioning and operational/financial performance. Which of the following statements most accurately encapsulates a firm’s system of internal control?

Madison and Johnnie, two audit staff associates, are eating lunch one day in the client’s cafeteria. They overhear a couple of the employees talking about accounts receivable and the firms’ credit sales in general. What might be some risks associated with this area, and to what assertions might they be tied?