What is auditing and its objects?

What is auditing and its objects?

“Auditing is the systematic examination of financial statements, records and related. operations to determine adherence to generally accepted accounting principles, management policies and stated requirement.” – R.E.Schlosser. Objectives of Auditing.

What is SOX 404B?

Simply stated, SOX 404B requires that your external auditors verify by testing, inspecting, or observing that you have internal controls over your accounting activities (SOX).

What is public float SEC?

Public float is calculated by multiplying the number of the company’s common shares held by non-affiliates by the market price and, in the case of an IPO, adding to that number the product obtained by multiplying the common shares covered by the registration statement by their estimated public offering price.

Which of the following activities would most likely be considered an attestation engagement?

Which of the following activities would most likely be considered an attestation engagement? Consulting with management representatives of a firm to provide advice.

What are the objects of vouching?

Objective of Vouching To verify that transactions are free from errors or frauds. To verify whether voucher is processed through all the stages of Internal Check system properly. To verify and confirm that the entries are recorded according to the capital and the revenue nature or not.

What is 404a and 404b?

Section 404(a) requires management to report on the effectiveness of ICFR. Section 404(b) requires an auditor attestation with respect to an issuer’s ICFR. Section 404(c) provides that Section 404(b) does not apply for an issuer that is neither an accelerated filer nor a large accelerated filer.

What is company float?

A stock float is the total number of shares that are available for public investors to buy and sell. It may be expressed as an absolute figure such as 10 million shares, or it may sometimes be expressed as a percentage of the company’s total outstanding shares.

What is a section 302 certification?

Content of Certification. Section 302 of the Act states that the required certification is to made by an issuer’s principal executive officer or officers and principal financial officer or officers, or persons performing similar functions. The required certification contains several statements.

Which assertion addresses whether all transactions?

Assertions about completeness address whether all transactions and accounts that should be presented in the financial statements are so included. For example, management asserts that all purchases of goods and services are recorded and are included in the financial statements.

Which of the following would not generally be considered a program control?

Which of the following would not generally be considered a program control? Segregation of duties controls. Substantive procedures that cannot be performed with generalized audit software include: Observing inventory.

What are the transaction related audit objectives?

General Transaction-Related Audit Objectives: Occurrence—Recorded transactions exist. Completeness—Existing transactions are recorded. Accuracy—Recorded transactions are stated at the correct amounts.

What is the main object of audit?

The audit is an objective examination and evaluation of financial records to make sure that records are showing the true and fair view of financial information. The objective of the audit is to detect and prevent the fraud and error by verifying the records inn depth.

What is objective of internal audit?

The purpose of auditing internally is to provide insight into an organization’s culture, policies, procedures, and aids board and management oversight by verifying internal controls such as operating effectiveness, risk mitigation controls, and compliance with any relevant laws or regulations.

What is the main object of investigation?

The purpose of an investigation is to establish relevant facts to prove or disprove allegations of fraud and corruption. It is a legally established fact-finding process conducted in an impartial and objective manner, with the aim to establish the relevant facts and make recommendations in this connection.

What are the six elements of control environment?

For this control environment to work, the following elements need to be integrated.

• Management philosophy.
• Risk appetite.
• Governing board.
• Integrity and ethical values.
• Commitment to skills.
• Organizational structure.
• Assignment of authority and responsibility.
• Human resource standards.