1. What is the auditor’s responsibility for obtaining an understanding of and reporting on internal controls for publicly held companies? For privately held companies? How are the responsibilities similar and how do they differ?

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1. What is the auditor’s responsibility for obtaining an understanding of and reporting on internal controls for publicly held companies?  For privately held companies?  How are the responsibilities similar and how do they differ?

2. What is meant by the control environment and what are the factors the auditor must evaluate to understand it?

3. What is the relationship among the five components of internal control?

4. What are the steps that the auditor takes to determine and assess control risk?

5. Distinguish between a significant deficiency in internal control from a material weakness in internal control.  Provide an two example of each.  How will the presence of a significant deficiency in internal control under PCAOB standards affect an auditor’s report on internal control?

6. Provide two examples of tests of control for the revenue cycle and describe the impact that weak controls in your two examples would have on your testing of revenue.

7. Describe the steps that you would take to determine an audit strategy for your SEC 10K company.

8. Describe Sarbanes Oxley requirements of the auditor regarding internal controls.

9. What are the differences between the “old” COSO framework and the “new” COSO framework?

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