What is the process designed and affected by those charged with governance management and other personnel to provide reasonable assurance?
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For the purposes of this Auditing Standard, the following terms have the meanings attributed below: 4(a) Assertions means representations by management and those charged with governance, explicit or otherwise, that are embodied in the financial report, as used by the auditor to consider the different types of potential misstatements that may occur. 4(b) Business risk means a risk resulting from significant conditions, events, circumstances, actions or inactions that could adversely affect an entity’s ability to achieve its objectives and execute its strategies, or from the setting of inappropriate objectives and strategies. 4(c) Internal control means the process designed, implemented and maintained by those charged with governance, management and other personnel to provide reasonable assurance about the achievement of an entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations. The term “controls” refers to any aspects of one or more of the components of internal control. 4(d) Risk assessment procedures means the audit procedures performed to obtain an understanding of the entity and its environment, including the entity’s internal control, to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial report and assertion levels. 4(e) Significant risk means an identified and assessed risk of material misstatement that, in the auditor’s judgement, requires special audit consideration. Internal ControlThe process designed, implemented and maintained by those charged with governance, management and other personnel to provide reasonable assurance about the achievement of an entity's objectives with regard to the reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations. There is currently no content classified with this term. (10) “internal controls” means a process, effected by an entity’s management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: (A) Effectiveness and efficiency of operations. (B) Reliability of financial reporting. 1 (C) Compliance with applicable laws and regulations; The process designed and effected by those charged with governance, management, and other personnel toprovide reasonable assurance about the achievement of the entity’s objectives with regard to reliability offinancial reporting, effectiveness and efficiency of operations and compliance with applicable laws andregulations.a.Internal Controlc.Administrative controlb.Accounting controld.Control environment 2.The financial statements are not likely to correctly reflect GAAP if the: Get answer to your question and much more 3.Which of the following is not true of internal control as defined by Committee of Sponsoring Organizationsof the Treadway Commission (COSO)–Integrated Framework? Get answer to your question and much more 4.The primary responsibility for designing, implementing and maintaining internal control, and the tone ofinternal control typically originates, rests with Get answer to your question and much more 5.According to PSA 315, the auditor uses the understanding of internal control to:a.Identify types of potential misstatementsb.Consider factors that affect the risks of material misstatementc.Design the nature, timing and extent of further audit proceduresd.All of the above 6.PSAs require the auditor to obtain understanding of the entity’sinternal control structure Get answer to your question and much more 7.Reasons to evaluate internal control would not include Get answer to your question and much more What is an intentional act by one or more members of management those charged with governance employees or third parties?The term “fraud” refers to an intentional act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception to obtain an unjust or illegal advantage.
What is the relationship between an entity's objectives and the controls it implements to provide reasonable assurance about their achievement?There is a direct relationship between an entity's objectives and the controls it implements to provide reasonable assurance about their achievement.
Are the policies and procedures that help ensure that management are carried out?Control activities – Control activities are the policies and procedures that help ensure management directives are carried out. They include a range of activities as diverse as approvals, authorizations, verifications, reconciliations, reviews of operating performance, security of assets and segregation of duties.
What is risk assessment procedure in audit?•Risk assessment is the identification and evaluation of several. aspects of an entity whereby risks are identified and evaluated for use in guiding the audit procedures that will be necessary in order to substantiate the amounts reported in the financial statements.
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