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

Which COSO component of internal control concerns the process of identifying, capturing, and exchanging information in a timely fashion to enable accomplishment of the organization's objectives?

Generally, highly regulated entities have more complex control activities than less-regulated entities.

Which statement is true concerning the documentation of internal control?

Which of the following is not true of internal control as defined by COSO?

Which of the following is an example of a detective control in an information system?

Which of the following is not a reason that the auditor must gain an understanding of the client's internal control system?

Which one of the following groups is interested in an organization's control structure?

Which of the following is the most severe?

Segregation of duties is a control activity that is designed to protect against the risk that an individual could both perpetrate and cover up a fraud.

Internal control is a process designed to guarantee the achievement of the objectives of reliable financial reporting, compliance with laws and regulations and ineffective and inefficient operations.

A control designed to ensure that sales transactions are generated using the company's most current prices would be considered to be which type of control?

In an Integrated Audit, what is the independent external auditor primary concerned with?

Management's risk assessment process should be performed only by senior-level management.

Internal control is a process affected by the organization's board of directors, management, and other personnel to provide reasonable assurance of achieving certain objectives. Which of the following does not fit into one of these categories of objectives?

The quality of an organization's internal control will affect both the audit approach and the amount of testing needed for an engagement.

Internal control. Define the term "internal control" and identify the major components of an internal control system.

An organization's commitment to integrity is demonstrated through the tone set by the board and management.

A material control weakness is a deficiency in internal control such that a reasonable probability exists that a material misstatement of the company's financial statements may not be prevented or detected on a timely basis.

Which of the following is not included as a components of an organization's internal control structure in the COSO framework?

In addition to controls being specific, they may be broad, such as policies regarding a code of ethics.