Exam 10: Internal Control, Control Risk, and Section 404 Audits

List the three steps in management's assessment of risk and then list two of the categories of management assertions that must be satisfied during the risk assessment process.

If an auditor wishes to rely on the work of internal auditors (IA), the auditor must obtain satisfactory evidence related to the IA's competence, integrity, and objectivity.

Which of the following is most correct regarding the requirements under Section 404 of the Sarbanes Oxley Act?

Which of the following components of the control environment define the existing lines of responsibility and authority?

The scope of the auditor's report on internal control is limited to obtaining reasonable assurance that significant weaknesses in internal control are identified.

An audit procedure that would most likely be used by an auditor in performing tests of control procedures in which the segregation of functions and that leaves no "audit" trail is:

Which of the following best describes an entity's accounting information and communication system?

An auditor should consider two key issues when obtaining an understanding of a client's internal controls.These issues are:

Significant deficiencies are matters that come to an auditor's attention and should be communicated to an entity's audit committee because they represent:

Which of the following is most correct for audits of non-public companies?

Auditing standards prohibit reliance on the work of internal auditors due to the lack of independence of the internal auditors.

Discuss what is meant by the term "control environment" and identify four control environment subcomponents that the auditor should consider.

Without an effective ________, the other components of the COSO framework are unlikely to result in effective internal control, regardless of their quality.

The PCAOB places responsibility for the reliability of internal controls over the financial reporting process on:

When determining what type of report to issue on internal control under Section 404:

Internal controls are not designed to provide reasonable assurance that:

Internal controls:

When one material weakness is present at the end of the year, management of a public company must conclude that internal control over financial reporting is:

When considering internal controls, an important point to consider is that:

Sarbanes-Oxley requires management to issue an internal control report that includes two specific items.Which of the following is one of these two requirements?