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Auditing Srandards No. 2 and 5
Essay specific features
Written by:
Mark R
Date added:
December 24, 2011
Level:
University
Grade:
A
No of pages / words:
2 / 514
Was viewed:
3654 times
Rating of current essay:
Essay content:
Significant deficiency is defined as “a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of the registrant’s financial reporting.” Material weakness if defined as “a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there a reasonable possibility that a material misstatement of the registrant’s annual or interim financial statements will not be prevented or detected on a timely basis by the company’s internal controls...
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The auditor may use competent and objective work of others in an integrated audit to obtain evidence supporting the auditor’s assessment of control risk for purpose of the audit of financial statements. Although the use of the work of other’s will more limited as risk increases. (RIAG)
When a company has multiple locations or business units, the auditor should identify significant accounts and disclosures and their relevant assertions based on the consolidated financial statements...
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