Exam 10: Considering Internal Control

If the results of tests of controls support the design and operations of controls as expected,the auditor uses ________ control risk as the preliminary assessment.

Control activities are a subcomponent of the information and communication component of internal control.

When management is evaluating the design of internal control,management evaluates whether the control can do which of the following?

Of the following statements about internal controls,which one is least likely to be correct?

Reasonable assurance allows for:

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

Auditors of private companies may rely on prior periods' tests of controls.

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

Internal controls can never be regarded as completely effective.Even if company personnel could design an ideal system,its effectiveness depends on the:

Proper segregation of functional responsibilities calls for separation of:

Section 404 of the Sarbanes-Oxley Act requires that public companies issue an internal control report.

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

The chart of accounts is helpful in preventing classification errors if it accurately describes which type of transaction should be in each account.

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

In the audit of a private company,the auditor will test internal controls when control risk is initially assessed at:

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

Which of the following is not one of the subcomponents of the control environment?

A company's size should have no impact on the nature of internal control and the controls that are implemented.

The person responsible for reconciling sales invoices to customer orders does not access to the company's master price list in order to correctly compute sales.This is an example of a(n):

Define the following terms: control deficiency,significant deficiency,and material weakness.