A) are the procedures used to test the effectiveness of controls in support of a reduced assessed control risk. B) are used to support the ending balances in the balance sheet and income statement accounts. C) are performed at the end of the audit. D) are designed to detect fraud. A) are the procedures used to test the effectiveness of controls in support of a reduced assessed control risk. B) are used to support the ending balances in the balance sheet and income statement accounts. C) are performed at the end of the audit. D) are designed to detect fraud.

Exam 12: Assessing Control Risk and Reporting on Internal Controls

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You are performing the audit of internal control for Clifton Company.Which of the following would represent a material weakness in internal control?

(Multiple Choice)

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Question 41

It is generally possible for small companies to have all of the following except for

(Multiple Choice)

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Question 42

The auditor designs and performs a combination of tests of controls and substantive procedures to obtain reasonable assurance that the financial statements are fairly stated when control risk

(Multiple Choice)

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(40)

Question 43

Tests of controls

(Multiple Choice)

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Question 44

An auditor traces the sales prices to the authorized price list in effect at the date of the transaction.Which of the following procedures has the auditor performed?

(Multiple Choice)

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Question 45

Flowcharts are harder to read aad update than narratives.

(True/False)

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Question 46

When identifying audit objectives and existing controls,

(Multiple Choice)

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Question 47

A design deficiency exists if the person performing the control is not qualified.

(True/False)

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Question 48

When assessing whether the financial statements are auditable,the auditor must consider

(Multiple Choice)

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Question 49

Which of the following is the correct definition of "control deficiency"?

(Multiple Choice)

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Question 50

An auditor is likely to use four types of procedures to support the operating effectiveness of internal controls.Which of the following would generally not be used?

(Multiple Choice)

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Question 51

Generalized audit software is used to test automated controls.

(True/False)

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Question 52

The auditor obtains a sufficient understanding of internal control to assess the risk of material misstatement at the overall financial statement level and at the relevant assertion level.

(True/False)

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Question 53

When assessing control risk,

(Multiple Choice)

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Question 54

The auditor should identify and include only ________ controls since they will be sufficient to achieve the transaction-related audit objectives and will also provide audit efficiency.

(Multiple Choice)

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Question 55

Auditing by testing automated internal controls and account balances electronically,generally because effective general controls exist,is known as

(Multiple Choice)

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Question 56

The auditor's objective in determining whether the client's computer program correctly processes valid and invalid transactions is accomplished through the

(Multiple Choice)

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Question 57

What type of report is issued when one or more material internal control weaknesses exist?

(Multiple Choice)

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Question 58

The procedures used to gain an understanding of internal control do not vary from client to client.

(True/False)

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Question 59

To issue an unqualified opinion on internal control over financial reporting,there must be no identified material weaknesses and no restrictions on the scope of the audit.

(True/False)

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Question 60

Showing 41 - 60 of 81

Exam 12: Assessing Control Risk and Reporting on Internal Controls

You are performing the audit of internal control for Clifton Company.Which of the following would represent a material weakness in internal control?

It is generally possible for small companies to have all of the following except for

The auditor designs and performs a combination of tests of controls and substantive procedures to obtain reasonable assurance that the financial statements are fairly stated when control risk

Tests of controls

An auditor traces the sales prices to the authorized price list in effect at the date of the transaction.Which of the following procedures has the auditor performed?

Flowcharts are harder to read aad update than narratives.

When identifying audit objectives and existing controls,

A design deficiency exists if the person performing the control is not qualified.

When assessing whether the financial statements are auditable,the auditor must consider

Which of the following is the correct definition of "control deficiency"?

An auditor is likely to use four types of procedures to support the operating effectiveness of internal controls.Which of the following would generally not be used?

Generalized audit software is used to test automated controls.

The auditor obtains a sufficient understanding of internal control to assess the risk of material misstatement at the overall financial statement level and at the relevant assertion level.

When assessing control risk,

The auditor should identify and include only ________ controls since they will be sufficient to achieve the transaction-related audit objectives and will also provide audit efficiency.

Auditing by testing automated internal controls and account balances electronically,generally because effective general controls exist,is known as

The auditor's objective in determining whether the client's computer program correctly processes valid and invalid transactions is accomplished through the

What type of report is issued when one or more material internal control weaknesses exist?

The procedures used to gain an understanding of internal control do not vary from client to client.

To issue an unqualified opinion on internal control over financial reporting,there must be no identified material weaknesses and no restrictions on the scope of the audit.

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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