Prior to SOX, external auditors were required to be familiar with the client organization's internal controls, but not test them. Explain
Auditors had the option of not relying on internal controls in the conduct of an audit and therefore did not need to test them. Instead auditors could focus primarily of substantive tests. Under SOX, management is required to make specific assertions regarding the effectiveness of internal controls. To attest to the validity of these assertions, auditors are required to test the controls.
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A ________ shows the pay period dates, hours worked, gross pay, deductions, and net pay of each employee for every pay period.
Fill in the blank(s) with the appropriate word(s).
One problem with the approach used in question 16.8 is ________
A) it is difficult to determine the foreign cash flows in the foreign currency B) it is difficult to determine the appropriate foreign currency spot rate to the domestic currency C) it is difficult to determine the appropriate foreign currency discount rate to the domestic currency D) it is difficult to determine the domestic currency cash flows
Brokerage firms that offered money market security accounts in the 1970s had a cost advantage over banks in attracting funds because the brokerage firms
A) were not subject to deposit reserve requirements. B) were not subject to the deposit interest rate ceilings. C) were not limited in how much they could borrow from depositors. D) had the advantage of all the above. E) had the advantage of only A and B of the above.
The relationships in the collaboration diagram relate to the exchange of messages among objects
Indicate whether the statement is true or false