Exam 5: Risk Assessment: Internal Control Evaluation

Explain the different opinions that auditors can issue for an entity's internal control over financial reporting.

Sound internal control can be described as separating all of the following duties and responsibilities except for

The internal control in small business is highly dependent on the

Which of the following is a factor in the control environment?

When the audit team increases the planned assessed level of control risk because certain control activities were determined to be ineffective,the audit team would most likely increase the

Which of the following is not a component of internal controls?

In an audit of financial statements,an auditor's primary consideration regarding an internal control policy or activity is whether the policy or activity

Which of the following audit procedures most likely would provide an auditor with the most assurance about the effectiveness of the operation of an entity's internal control?

What are some of the problems in establishing an internal control system in small business? A. Separation of functional responsibilities would be difficult because of the small number of employees. B. The owner manager has to assume a greater role to oversee and supervise authorization, recordkeeping, and custodial functions. C. The owner manager must be diligent, competent, and have a high degree of integrity.

The primary objective of procedures performed to obtain an understanding of the entity's internal control is to provide an auditor with

List and explain briefly the phases of an internal control evaluation.

A report on internal control effectiveness by the management team of public companies is required by

Which of the following most likely would not be considered an inherent limitation of the potential effectiveness of an entity's internal controls?

In testing control activities,an auditor ordinarily selects from a variety of techniques,including

Which of the following areas can external auditors rely on internal auditors' work in auditing internal controls?

Proper separation of duties reduces the opportunities to allow persons to be in positions to both

Each of the following types of controls is considered to be an entity-level control,except those

Control strengths and weaknesses should be documented in audit documentation,sometimes called

Which of the following is the least important audit reason for the auditor's obtaining an understanding of a company's internal control?

An auditor is evaluating a client's internal controls.Which of the following situations would be the most difficult internal control issue for an auditor to detect?