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31 Cards in this Set
- Front
- Back
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for what shall ia gain an understanding of the design of internal controls?
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in order to determine if the design of the internal controls is sufficiently good and if they should be tested |
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Who does primarily benefit from the preparation of working papers? |
The internal audit activity |
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what are the two most important aspects of working papers?
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completeness and support for conclusions |
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What is the primary purpose of preparing working papers? |
Working papers document the information obtained, the analyses made, and the support for the conclusions and engagement results |
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how can working papers be catagorized?
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as permanent (carry-forward) and current
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What is the primary purpose of retaining working papers? |
Provide support for the final engagement communication. |
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What should be included in the permanent file portion of the engagement working papers? |
the information that does not change permanently (e.g. Administrative controls of computer system) |
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Which flowchart provides a better process overview at a glance? |
the horizontal flowchart |
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to whom must ia report their audit results? |
auditor in charge of the engagement
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What is the advantage of a vertical flowchart? |
it is designed to provide for written descriptions |
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What is appropriate evidence of supervisory review of engagement workpapers?
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A supervisor’s initials on each workpaper, an engagement workpaper review checklist, and a memorandum describing the review
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What does cross referencing of working papers facilitate (4 items)?
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preparation of the final engagement communication,
later engagements involving the same client, internal and external quality assessments, factual rebuttal of challenges by clearly identifying sources and locations of facts |
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when and what is flowcharting used for?
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to gain an understanding of processes and controls during the preliminary survey |
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What should each engagement working paper contain? |
a heading, description of the contents, date, IA's signature, reference number, Verification symbols (tick marks) |
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What should each working paper have? |
an index or reference number |
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what types of flowcharts are there?(3)
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system (horizontal), program (vertical), data flow |
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What is the principal purpose for retaining working papers? |
Provide support for the final engagement communication |
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for how long does the IIA prescribe to retain working papers?
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not at all |
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what kind of activities are horizontal flowcharts used for to depict? |
- activities across different departments |
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The assignment of what to different persons are horizontal flowcharts used to depict? |
assignment of duties and controls to different persons |
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who must control the access to engagement records?
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the cae |
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What is the primary use of indexing? |
to enable cross-referencing |
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What type of information are receipts? |
documentary |
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What kind of records is accessible in criminal proceedings?
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most records that are that are not protected by the attorney-client privilege
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In which section of engagement working papers should prior year's engagement papers be contained? |
in the current portion of engagement working papers |
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Who does issue the bill of lading when sold goods are shipped to the customer?
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the external carrier
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When should working papers never be disclosed to clients? |
when fraud is suspected |
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When should working papers be disclosed to clients? |
to evaluate their significance, completeness and accuracy |
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Should working papers prepared for fraud investigators be retained indefinitely? |
no, there are no working papers that should be retained indefinitely |
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Why shouldn't scratch paper be included in working papers? |
notes on scratch paper are difficult to review and understand |
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what is gantt chart used for?
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project management
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