Exam 8: Understanding and Assessing Internal Control Part Three: Tests of Control and Tests of Details

For internal control purposes, which of the following individuals should preferably be responsible for the distribution of payroll cheques?

After obtaining an initial understanding of a client's IT controls, an auditor may decide not to perform tests of controls related to the control procedures within the IT portion of the client's internal control. Which of the following would not be a valid reason for choosing to omit tests of controls?

After obtaining an understanding of internal control in an audit engagement, the auditor should perform tests of controls on:

Which of the following is not one of the five elements of internal control?

An advantage of using systems flowcharts to document information about internal control instead of using internal control questionnaires is that systems flowcharts:

Which of the following is one of the overriding principles of internal control?

Tests of controls are performed to determine whether or not:

The completeness of IT-generated sales figures can be tested by comparing the number of items listed on the daily sales report with the number of items billed on the actual invoices. This process uses:

Which of the following computer documentation would an auditor most likely utilise in obtaining an understanding of internal control?

The use of a header label in conjunction with magnetic tape is most likely to prevent errors by the:

For good internal control, which of the following functions should not be the responsibility of the treasurer's department?

An auditor reviews a client's payroll procedures. The auditor would consider the internal control to be less than effective if a payroll department supervisor was assigned the responsibility for:

The auditor obtains evidence supporting the notion that proper segregation of duties exists by:

An auditor assesses the level of control risk to:

Which of the following would lessen the effectiveness of the internal control in a computer system?

In which of the following situations would an auditor most likely use a strategy of reliance on internal control?

For control purposes, which of the following should be organisationally segregated from the computer operations function?

Which of the following is not a reason to assess control risk as high?

For a complex system, auditors are least likely to use which of the following when documenting their understanding of internal controls?

A flowchart is most frequently used by an auditor in connection with the: