Question

Hello, please can you give me the answers of these questions. Thanks

12.1

Because of the possibility that a forensic accounting engagement may result in litigation,

·         (a)

forensic accountants must be law enforcement officers, lawyers, or officers of the court.

·         (b)

forensic accountants must be certified by the ACFE.

·         (c)

forensic accountants do not rely on interviews as a source of evidence.

·         (d)

forensic accountants are likely to have an adversarial relationship with the employees of their clients.

12.2]

The Institute of Internal Auditors (IIA) states that internal auditors

·         (a)

conduct an independent objective assurance and consulting activity.

·         (b)

cannot be independent because they have an employment relationship with the target of their activities.

·         (c)

add value by enhancing management’s efficiency.

·         (d)

are an integral part of management’s decisionmaking team in assessing the effectiveness of ICFR.

3-Internal auditors

·         (a)

must follow all AICPA professional guidance in their work.

·         (b)

are guided by the International Standards for the Professional Practice of Internal Auditing.

·         (c)

may be guided by AICPA or IIA standards, but neither is preferred over the other.

·         (d)

none of the above.

4- SOX Section 302 places requirements on management

·         (a)

for quarterly filings only.

·         (b)

for an audit of ICFR.

·         (c)

for annual and quarterly reports.

·         (d)

for the auditor to assume responsibility for assessing and reporting on the effectiveness of ICFR.

5- Compliance auditing

·         (a)

involves assessing whether the entity being audited complies with stipulations such as laws, regulations, and the terms of a contract, for example, the requirements of a Federal grant.

·         (b)

deals with assessing whether management complies with all the expectations of the auditor as the financial statement and ICFR audit progresses.

·         (c)

is the same as operational auditing.

·         (d)

must be performed for all departments of the federal government.

6- Under which of the following circumstances is the accounting practitioner required to issue a compilation report to accompany financial statements?

·         (a)

The financial statements are for management use only, and a written engagement letter was executed.

·         (b)

The financial statements are for management use only, and a written engagement letter was not executed.

·         (c)

The financial statements are for management use only, substantially all disclosures were omitted, and a written engagement letter was executed.

·         (d)

A compilation report must be issued in all the circumstances above.

7- the engagement to provide a “comfort letter” is most like which of the following?

·         (a)

An agreed-upon procedures engagement

·         (b)

An examination

·         (c)

A review

·         (d)

A legal services engagement

Answer 1

1. Answer is (c)forensic accountants do not rely on interviews as a source of evidence.

It is because forensic audit relies on more conclusive evidence such as documentary evidence of fraud rather than Interviews.

2. Answer is (d)are an integral part of management’s decision making team in assessing the effectiveness of ICFR.

It is because Internal Auditors play important role in assessing the ICFR.

3. Answer is (c)may be guided by AICPA or IIA standards, but neither is preferred over the other.

The above statement is correct.

4. Answer is (c)for annual and quarterly reports.

Section 302 of SOX Act puts various requirements on the Company Management relating to Annual and Quaterly Statements.

5.Answer is (a)involves assessing whether the entity being audited complies with stipulations such as laws, regulations, and the terms of a contract, for example, the requirements of a Federal grant.

The above statement is correct about Compliance Auditing.