Question 1

Which of the following is a major component of an organization's internal control structure?

Accepted Answer

A)  Major new financing. 
B)  The financial environment. 
C)  Risk assessment. 
D)  Telecommunication equipment. 
A)  Major new financing. 
B)  The financial environment. 
C)  Risk assessment. 
D)  Telecommunication equipment.

Question 2

Which of the following is not part of management's report on internal controls?

Accepted Answer

A)  Management responsibility for control of financial reporting. 
B)  The framework used to evaluate internal control. 
C)  An assessment of the effectiveness of the company's internal control. 
D)  A statement indicating the extent of tests performed to assess controls. 
A)  Management responsibility for control of financial reporting. 
B)  The framework used to evaluate internal control. 
C)  An assessment of the effectiveness of the company's internal control. 
D)  A statement indicating the extent of tests performed to assess controls.

Question 3

Which of the following is not true of the concepts that are embodied in the COSO framework of internal controls?

Accepted Answer

A)  Internal controls relate to the organization's objectives. 
B)  The six components of internal control are logically and operationally intertwined. 
C)  Internal controls apply across all activities of the organization. 
D)  All of the above are true. 
A)  Internal controls relate to the organization's objectives. 
B)  The six components of internal control are logically and operationally intertwined. 
C)  Internal controls apply across all activities of the organization. 
D)  All of the above are true.

Question 4

Which of the following is another name for transaction controls?:

Accepted Answer

A)  Entity-wide controls. 
B)  Application controls. 
C)  Supporting controls. 
D)  Detail controls. 
A)  Entity-wide controls. 
B)  Application controls. 
C)  Supporting controls. 
D)  Detail controls.

Question 5

Which one of the following is an example of an internal risk for an organization?

Accepted Answer

A)  Changes in internal information technology. 
B)  Increases in substitute services or products. 
C)  Changes in the reliability of source goods. 
D)  Changes in regulation that make the business model unsustainable. 
A)  Changes in internal information technology. 
B)  Increases in substitute services or products. 
C)  Changes in the reliability of source goods. 
D)  Changes in regulation that make the business model unsustainable.

Question 6

A well-controlled organization has an appropriate structure and clearly defined lines of responsibility and authority where everyone in the organization has equal responsibility for the effective operation of internal control.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following best describes the purpose of personnel policies and procedures?

Accepted Answer

A)  Ensure the organization hires the right people. 
B)  Ensure the organization complies with federal and state laws in its hiring and retention decisions. 
C)  Ensure the organization has employees that are properly trained and supervised. 
D)  Ensure the organization performs all of the above. 
A)  Ensure the organization hires the right people. 
B)  Ensure the organization complies with federal and state laws in its hiring and retention decisions. 
C)  Ensure the organization has employees that are properly trained and supervised. 
D)  Ensure the organization performs all of the above.

Question 8

The quality of an organization's internal controls affect which of the following?

Accepted Answer

A)  The reliability of financial data. 
B)  The ability of management to make good decisions. 
C)  The ability to remain in business. 
D)  All of the above. 
A)  The reliability of financial data. 
B)  The ability of management to make good decisions. 
C)  The ability to remain in business. 
D)  All of the above.

Question 9

The information and communication component of internal control includes which of the following?

Accepted Answer

A)  The organization deploys control activities through policies that establish what is expected and in procedures that put policies into action. 
B)  The organization obtains or generates and uses relevant, quality information to support the functioning of other components of internal control. 
C)  The organization identifies and assesses changes that could significantly impact the system of internal control. 
D)  All of the above. 
A)  The organization deploys control activities through policies that establish what is expected and in procedures that put policies into action. 
B)  The organization obtains or generates and uses relevant, quality information to support the functioning of other components of internal control. 
C)  The organization identifies and assesses changes that could significantly impact the system of internal control. 
D)  All of the above.

Question 10

Internal control components and principles.
For each of the five components of internal control, list at least two related principles of internal control.n gathering the information and briefly describe each one.

Accepted Answer

Internal C

Question 11

A transaction trail includes the documents and records that allow an auditor to trace a transaction from its origination through to its final disposition, or vice versA.

Accepted Answer

A) True 
 B)False

Question 12

Requiring two signatures on any check in excess of $10,000 is an example of which type of control?

Accepted Answer

A)  Input control. 
B)  Preventive control. 
C)  Detective control. 
D)  Processing control. 
A)  Input control. 
B)  Preventive control. 
C)  Detective control. 
D)  Processing control.

Question 13

IT Controls Integrated into Internal Control Evaluations.
Explain input controls.

Accepted Answer

The control procedures designed to assur

Question 14

Segregation of duties is considered a part of the monitoring component of the COSO framework for internal control structure.

Accepted Answer

A) True 
 B)False

Question 15

An auditor needs to understand a company's internal controls in order to anticipate the types of material misstatements that may occur.

Accepted Answer

A) True 
 B)False

Question 16

Internal Control Principles.
One of the COSO principles of internal control requires organizations to demonstrate a commitment to attract, develop, and retain competent individuals in alignment with objectives. Discuss how this can be done.

Accepted Answer

commitment to competence includes manage

Question 17

Which of the following services does the PCAOB require auditors of public companies to perform?

Accepted Answer

A)  A financial statement audit and an attest audit. 
B)  A financial statement audit and an assurance audit. 
C)  A financial statement audit and agreed upon procedures. 
D)  A financial statement audit and an examination of the effectiveness of internal controls. 
A)  A financial statement audit and an attest audit. 
B)  A financial statement audit and an assurance audit. 
C)  A financial statement audit and agreed upon procedures. 
D)  A financial statement audit and an examination of the effectiveness of internal controls.

Question 18

An organization's control environment is established and maintained by the internal auditing department.

Accepted Answer

A) True 
 B)False

Question 19

Control activities may be implemented at the organizational level and at the transactional level.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not part of the control environment?

Accepted Answer

A)  Management philosophy and operating style. 
B)  Methods of assigning authority and responsibility. 
C)  Personnel policies and practices. 
D)  Control activities. 
A)  Management philosophy and operating style. 
B)  Methods of assigning authority and responsibility. 
C)  Personnel policies and practices. 
D)  Control activities.

Which of the following is a major component of an organization's internal control structure?

Which of the following is not part of management's report on internal controls?

Which of the following is not true of the concepts that are embodied in the COSO framework of internal controls?

Which of the following is another name for transaction controls?:

Which one of the following is an example of an internal risk for an organization?

A well-controlled organization has an appropriate structure and clearly defined lines of responsibility and authority where everyone in the organization has equal responsibility for the effective operation of internal control.

Which of the following best describes the purpose of personnel policies and procedures?

The quality of an organization's internal controls affect which of the following?

The information and communication component of internal control includes which of the following?

Internal control components and principles. For each of the five components of internal control, list at least two related principles of internal control.n gathering the information and briefly describe each one.

A transaction trail includes the documents and records that allow an auditor to trace a transaction from its origination through to its final disposition, or vice versA.

Requiring two signatures on any check in excess of $10,000 is an example of which type of control?

IT Controls Integrated into Internal Control Evaluations. Explain input controls.

Segregation of duties is considered a part of the monitoring component of the COSO framework for internal control structure.

An auditor needs to understand a company's internal controls in order to anticipate the types of material misstatements that may occur.

Internal Control Principles. One of the COSO principles of internal control requires organizations to demonstrate a commitment to attract, develop, and retain competent individuals in alignment with objectives. Discuss how this can be done.

Which of the following services does the PCAOB require auditors of public companies to perform?

An organization's control environment is established and maintained by the internal auditing department.

Control activities may be implemented at the organizational level and at the transactional level.

Which of the following is not part of the control environment?

Auditing: Integral to the Economy

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

Professional Auditing Standards and the Audit Opinion Formulation Process

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

Filters

Exam 3: Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditors

Which of the following is a major component of an organization's internal control structure?

Which of the following is not part of management's report on internal controls?

Which of the following is not true of the concepts that are embodied in the COSO framework of internal controls?

Which of the following is another name for transaction controls?:

Which one of the following is an example of an internal risk for an organization?

A well-controlled organization has an appropriate structure and clearly defined lines of responsibility and authority where everyone in the organization has equal responsibility for the effective operation of internal control.

Which of the following best describes the purpose of personnel policies and procedures?

The quality of an organization's internal controls affect which of the following?

The information and communication component of internal control includes which of the following?

Internal control components and principles. For each of the five components of internal control, list at least two related principles of internal control.n gathering the information and briefly describe each one.

A transaction trail includes the documents and records that allow an auditor to trace a transaction from its origination through to its final disposition, or vice versA.

Requiring two signatures on any check in excess of $10,000 is an example of which type of control?

IT Controls Integrated into Internal Control Evaluations. Explain input controls.

Segregation of duties is considered a part of the monitoring component of the COSO framework for internal control structure.

An auditor needs to understand a company's internal controls in order to anticipate the types of material misstatements that may occur.

Internal Control Principles. One of the COSO principles of internal control requires organizations to demonstrate a commitment to attract, develop, and retain competent individuals in alignment with objectives. Discuss how this can be done.

Which of the following services does the PCAOB require auditors of public companies to perform?

An organization's control environment is established and maintained by the internal auditing department.

Control activities may be implemented at the organizational level and at the transactional level.

Which of the following is not part of the control environment?

Auditing: Integral to the Economy

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

Professional Auditing Standards and the Audit Opinion Formulation Process

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

Filters