Strategies for testing internal controls

Assignment Help Accounting Basics
Reference no: EM13130865

a) Briefly describe three strategies for testing internal controls when information technology is used for significant accounting processing.

b) Identify two strategies that might be used to support a low control risk assessment. Discuss the difference between the two strategies.

c) Discuss a third audit strategy that might be used to assess control risk at a high level. Explain why this strategy will not support a low control risk assessment.

Reference no: EM13130865

Questions Cloud

Show the effects of the subsidy on a graph : How much substitutability do you suppose exists between inputs in winemaking? How might this factor affect efforts to cut costs?
Find the risk preference of people who play lottery : How much net revenue does the state expect, on average from each ticket? What is the risk preference of people who play this lottery?
Determining tax effect of transaction : A firm is selling an existing asset for $5000. The asset when purchased cost $10,000, was depreciated under MACRS using a five-year recovery period and has been depreciated for four full years.
Journalize the treasury stock transactions : Restate the entry for September 1, assuming the treasury shares were sold at $12 per share.
Strategies for testing internal controls : Briefly describe three strategies for testing internal controls when information technology is used for significant accounting processing.
Fractions in real life situations : What are some examples of real-life situations where the addition of fractions, multiplication of fractions, or division of fractions might be required?
Calculate the heat of combustion of magnesium metal : A 0.1946 g piece of magnesium metal is burned in a constant volume calorimeter that has a heat capacity of 1349 J/°C.
Find the largest component probabilty that can be achieved : The engineer can spend $173 for the two components. To the nearest two decimal places, what is the largest component probabilty that can be achieved?
Question regarding compounded annual growth rate : Sales for Hanebury Corporation's just-ended year were $12 million. Sales were $6 million 5 years earlier. Suppose someone calculated the sales growth for Hanebury as follows: Sales doubled in 5 years.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Object of vertical analysis

Which of the following financial statements is rarely the object of vertical analysis?

  Explaining complex methodology

Describe a business situation where you have had to explain a complex problem or solution to a client or colleague. Describe the situation, your approach, and the outcome:

  Analyzing the code of professional conduct

Evaluate the importance of ethics in accounting. Do you think ethical behavior is more or less important in this profession than in others? Defend your position. Analyze the code of professional conduct, including enforceable and non-enforceable p..

  Determine the amount of sales revenue

Find out the amount of sales revenue dorough will report on the first 2012 quarterly proforma income statement. Prepare cash receipts schedule for the first quarter of 2012

  Computing flexible budget amounts

What would be the flexible budget amounts at an activity level of 12,000 machine hours if indirect materials is a variable cost and factory rent was a fixed cost?

  Determine the gross profit for period

A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for $12 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method.

  Interest rate on the less expensive debt instrument

Alternatively, ABC can sell 9.5 percent coupon bonds with a 2-year maturity and $1,000 par value at a price of $950.00. How many percentage points lower is the interest rate on the less expensive debt instrument?

  Explain how shaving 5% off the estimated direct labor hours

Explain how shaving 5% off the estimated direct labor hours in the base of the predetermined overhead rate usually results in a big boost in the net operating income at the end of the year.

  Investments with maturities

Cash equivalents are generally investments with maturities of :

  Journal entries of raptor corporation

On July 1, 2002, Raptor Corporation, a wholesaler of used robotic equipment, issued $7,500,000 of ten-year, 10% bonds at an effective interest rate of 12%, Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year o..

  Needs of international investors

Which of the following is the least likely means a company might choose to meet the needs of international investors?

  Description of bond values

The Heymann company's bonds have 4 years remaining to maturity. Interest is paid annually; the bonds have a $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S a maturity of 1 year.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd