Exam 10: Tests of Controls

Based on a study and evaluation completed at an interim date, the auditor concludes that no significant internal accounting control weaknesses exist.The records and procedures would most likely be tested again at year-end if:

If the auditor decides to seek a further reduction in control risk, this will require them to:

After the auditor planned the audit based on the lower assessed level of control risk approach it was found that the tests of control did not support this approach.Although the controls were well designed they were not implemented and therefore ineffective.What audit strategy should the auditor now pursue?

The relationship between the required understanding of the internal control structure and the preliminary audit strategy is that:

Of the following, the procedure that would produce the most reliable evidence on the segregation of duties is:

What audit strategy is the auditor likely to adopt if at the planning stage, control risk is assessed as less than high?

A disadvantage of the integrated test facility approach to a computer-assisted audit is:

Tests of controls are auditing procedures performed to determine:

The untrue statement concerning the communication of internal control matters to management during a financial statement audit is:

The incorrect statement is: The external auditor:

When control risk is assessed at the maximum, the extent of documentation required in the working papers is that:

The name given to the test of control where the auditor reprocesses actual entity data using auditor-controlled software is:

The test of control that is known as a dual-purpose test is:

Which of these would be a necessary control to prevent a cash payment being made for an unauthorised purpose?

The timing of tests of controls refers to:

When it is concluded that the nature and frequency of deviations exceeds the tolerable level, the auditor should: