Question 1

Define general controls.

Accepted Answer

General controls apply to all systems.Th

Question 2

Use the internal control procedures listed below to complete statements 6 through 12.
  
-Not permitting the computer programmer to enter the computer room is an example of _______________________________.

Accepted Answer

segregatio

Question 3

What are management responsibilities under section 302 and 404?

Accepted Answer

Section 302 requires that corporate mana

Question 4

The decision to extend credit beyond the normal credit limit is an example of

Accepted Answer

A)  independent verification 
B)  authorization 
C)  segregation of functions 
D)  supervision 
A)  independent verification 
B)  authorization 
C)  segregation of functions 
D)  supervision

Question 5

Explain the relationship between internal controls and substantive testing.

Accepted Answer

The stronger the int

Question 6

Section 404 requires that corporate management (including the CEO)certify their organization's internal controls on a quarterly and annual basis.

Accepted Answer

A) True 
 B)False

Question 7

An accounting system that maintains an adequate audit trail is implementing which internal control procedure?

Accepted Answer

A)  access controls 
B)  segregation of functions 
C)  independent verification 
D)  accounting records 
A)  access controls 
B)  segregation of functions 
C)  independent verification 
D)  accounting records

Question 8

The board of directors consists entirely of personal friends of the chief executive officer.This indicates a weakness in

Accepted Answer

A)  the accounting system 
B)  the control environment 
C)  control procedures 
D)  this is not a weakness 
A)  the accounting system 
B)  the control environment 
C)  control procedures 
D)  this is not a weakness

Question 9

Use the internal control procedures listed below to complete statements 6 through 12.
  
-Locking petty cash in a safe is an example of __________________________.

Accepted Answer

The answer of Use the internal control procedures listed below...

Question 10

Substantive tests include

Accepted Answer

A)  examining the safety deposit box for stock certificates 
B)  reviewing systems documentation 
C)  completing questionnaires 
D)  observation 
A)  examining the safety deposit box for stock certificates 
B)  reviewing systems documentation 
C)  completing questionnaires 
D)  observation

Question 11

Internal auditors assist external auditors with financial audits to

Accepted Answer

A)  reduce audit fees 
B)  ensure independence 
C)  represent the interests of management 
D)  the statement is not true; internal auditors are not permitted to assist external auditors with financial audits 
A)  reduce audit fees 
B)  ensure independence 
C)  represent the interests of management 
D)  the statement is not true; internal auditors are not permitted to assist external auditors with financial audits

Question 12

Which of the following is not an internal control procedure?

Accepted Answer

A)  authorization 
B)  management's operating style 
C)  independent verification 
D)  accounting records 
A)  authorization 
B)  management's operating style 
C)  independent verification 
D)  accounting records

Question 13

Which statement is not true?

Accepted Answer

A)  Auditors must maintain independence. 
B)  IT auditors attest to the integrity of the computer system. 
C)  IT auditing is independent of the general financial audit. 
D)  IT auditing can be performed by both external and internal auditors. 
A)  Auditors must maintain independence. 
B)  IT auditors attest to the integrity of the computer system. 
C)  IT auditing is independent of the general financial audit. 
D)  IT auditing can be performed by both external and internal auditors.

Question 14

The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.

Accepted Answer

A) True 
 B)False

Question 15

Define and contrast attestation services and advisory services.

Accepted Answer

Attest services are engagements in which

Question 16

A well-designed purchase order is an example of a

Accepted Answer

A)  preventive control 
B)  detective control 
C)  corrective control 
D)  none of the above 
A)  preventive control 
B)  detective control 
C)  corrective control 
D)  none of the above

Question 17

Advisory services is an emerging field that goes beyond the auditor's traditional attestation function.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following suggests a weakness in the internal control environment?

Accepted Answer

A)  the firm has an up-to-date organizational chart 
B)  monthly reports comparing actual performance to budget are distributed to managers 
C)  performance evaluations are prepared every three years 
D)  the audit committee meets quarterly with the external auditors 
A)  the firm has an up-to-date organizational chart 
B)  monthly reports comparing actual performance to budget are distributed to managers 
C)  performance evaluations are prepared every three years 
D)  the audit committee meets quarterly with the external auditors

Question 19

The importance to the accounting profession of the Sarbanes-Oxely Act is that

Accepted Answer

A)  bribery will be eliminated 
B)  management will not override the company's internal controls 
C)  management are required to certify their internal control system 
D)  firms will not be exposed to lawsuits 
A)  bribery will be eliminated 
B)  management will not override the company's internal controls 
C)  management are required to certify their internal control system 
D)  firms will not be exposed to lawsuits

Question 20

Explain how general controls impact transaction integrity and the financial reporting process.

Accepted Answer

Consider an organization with poor datab

Define general controls.

Use the internal control procedures listed below to complete statements 6 through 12. -Not permitting the computer programmer to enter the computer room is an example of _______________________________.

What are management responsibilities under section 302 and 404?

The decision to extend credit beyond the normal credit limit is an example of

Explain the relationship between internal controls and substantive testing.

Section 404 requires that corporate management (including the CEO)certify their organization's internal controls on a quarterly and annual basis.

An accounting system that maintains an adequate audit trail is implementing which internal control procedure?

The board of directors consists entirely of personal friends of the chief executive officer.This indicates a weakness in

Use the internal control procedures listed below to complete statements 6 through 12. -Locking petty cash in a safe is an example of __________________________.

Substantive tests include

Internal auditors assist external auditors with financial audits to

Which of the following is not an internal control procedure?

Which statement is not true?

The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.

Define and contrast attestation services and advisory services.

A well-designed purchase order is an example of a

Advisory services is an emerging field that goes beyond the auditor's traditional attestation function.

Which of the following suggests a weakness in the internal control environment?

The importance to the accounting profession of the Sarbanes-Oxely Act is that

Explain how general controls impact transaction integrity and the financial reporting process.

Auditing IT Governance Controls

Security Part I: Auditing Operating Systems and Networks

IT Security Part II: Auditing Database Systems

Systems Development and Program Change Activities

Overview of Transaction Processing and Financial Reporting Systems

Computer-Assisted Audit Tools and Techniques

Data Structures and CAATTs for Data Extraction

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Business Ethics, Fraud, and Fraud Detection

Enterprise Resource Planning Systems

Filters

Exam 1: Auditing and Internal Control

Define general controls.

Use the internal control procedures listed below to complete statements 6 through 12. -Not permitting the computer programmer to enter the computer room is an example of _______________________________.

What are management responsibilities under section 302 and 404?

The decision to extend credit beyond the normal credit limit is an example of

Explain the relationship between internal controls and substantive testing.

Section 404 requires that corporate management (including the CEO)certify their organization's internal controls on a quarterly and annual basis.

An accounting system that maintains an adequate audit trail is implementing which internal control procedure?

The board of directors consists entirely of personal friends of the chief executive officer.This indicates a weakness in

Use the internal control procedures listed below to complete statements 6 through 12. -Locking petty cash in a safe is an example of __________________________.

Substantive tests include

Internal auditors assist external auditors with financial audits to

Which of the following is not an internal control procedure?

Which statement is not true?

The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.

Define and contrast attestation services and advisory services.

A well-designed purchase order is an example of a

Advisory services is an emerging field that goes beyond the auditor's traditional attestation function.

Which of the following suggests a weakness in the internal control environment?

The importance to the accounting profession of the Sarbanes-Oxely Act is that

Explain how general controls impact transaction integrity and the financial reporting process.

Auditing IT Governance Controls

Security Part I: Auditing Operating Systems and Networks

IT Security Part II: Auditing Database Systems

Systems Development and Program Change Activities

Overview of Transaction Processing and Financial Reporting Systems

Computer-Assisted Audit Tools and Techniques

Data Structures and CAATTs for Data Extraction

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Business Ethics, Fraud, and Fraud Detection

Enterprise Resource Planning Systems

Filters