A) are implemented by and are the responsibility of the auditors. B) consist of policies and procedures designed to provide reasonable assurance that the company achieves its objectives and goals. C) guarantee that the company complies with all laws and regulations. D) only apply to SEC companies. A) are implemented by and are the responsibility of the auditors. B) consist of policies and procedures designed to provide reasonable assurance that the company achieves its objectives and goals. C) guarantee that the company complies with all laws and regulations. D) only apply to SEC companies.

Exam 10: Considering Internal Control

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If,when obtaining an understanding of control activities of a relatively small client,the auditor identified no control activities,the auditor would probably reassess whether the client is auditable.

(True/False)

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Question 41

Which of the following best describes the purpose of control activities?

(Multiple Choice)

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Question 42

When auditing a private company,the auditor should obtain an understanding of internal control sufficient to:

(Multiple Choice)

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Question 43

When dealing with the documentation of internal control:

(Multiple Choice)

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Question 44

Control risk is generally set at minimum for most private companies.

(True/False)

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Question 45

Which of the following activities would be least likely to strengthen a company's internal control?

(Multiple Choice)

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Question 46

When documenting their understanding of a client's internal controls,auditors are required to use narratives.

(True/False)

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Question 47

Which of management's assertions with respect to implementing internal controls is the auditor primarily concerned?

(Multiple Choice)

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Question 48

When the auditor attempts to understand the operation of the accounting system by tracing a few transactions through the accounting system,the auditor is said to be:

(Multiple Choice)

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Question 49

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.

(True/False)

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Question 50

When a compensating control exists,the absence of a key control:

(Multiple Choice)

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Question 51

Describe the auditor's responsibilities related to required communications between the auditor and those charged with governance (remove auditor committee)regarding internal control.

(Essay)

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Question 52

The assessment of control risk is the measure of the auditor's expectation that internal controls will prevent material misstatements from occurring or detect and correct them if they have occurred.

(True/False)

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Question 53

Audit evidence regarding the separation of duties is normally best obtained by:

(Multiple Choice)

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Question 54

Which of the following is correct with respect to the design and use of business documents?

(Multiple Choice)

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Question 55

Internal controls:

(Multiple Choice)

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Question 56

A control available in a small company,which may be necessitated because of lack of competent personnel,is:

(Multiple Choice)

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Question 57

A narrative should describe the disposition of every document and record in the system.

(True/False)

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Question 58

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:

(Multiple Choice)

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Question 59

If a company has an effective internal audit department:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 116

Exam 10: Considering Internal Control

If,when obtaining an understanding of control activities of a relatively small client,the auditor identified no control activities,the auditor would probably reassess whether the client is auditable.

Which of the following best describes the purpose of control activities?

When auditing a private company,the auditor should obtain an understanding of internal control sufficient to:

When dealing with the documentation of internal control:

Control risk is generally set at minimum for most private companies.

Which of the following activities would be least likely to strengthen a company's internal control?

When documenting their understanding of a client's internal controls,auditors are required to use narratives.

Which of management's assertions with respect to implementing internal controls is the auditor primarily concerned?

When the auditor attempts to understand the operation of the accounting system by tracing a few transactions through the accounting system,the auditor is said to be:

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.

When a compensating control exists,the absence of a key control:

Describe the auditor's responsibilities related to required communications between the auditor and those charged with governance (remove auditor committee)regarding internal control.

The assessment of control risk is the measure of the auditor's expectation that internal controls will prevent material misstatements from occurring or detect and correct them if they have occurred.

Audit evidence regarding the separation of duties is normally best obtained by:

Which of the following is correct with respect to the design and use of business documents?

Internal controls:

A control available in a small company,which may be necessitated because of lack of competent personnel,is:

A narrative should describe the disposition of every document and record in the system.

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:

If a company has an effective internal audit department:

The Assurance Services Market

The Audit Standards Setting Process

Audit Reports

Legal Liability Considerations for Auditors

Ethics and the Audit Profession

Audit Responsibilities and Objectives

Nature and Type of Audit Evidence

Audit Planning

Considering Materiality and Audit Risk

Considering the Risk of Fraud

Implications of Information Technology for the Audit Process

Developing the Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

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, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Inventory and Warehousing Cycle

Audit of the Payroll and Personnel Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Audit Completion

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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