Question 1

Which of the following is not part of management's report on internal controls?

Accepted Answer

A) A statement that management is responsible for internal control. 
B) The framework used to evaluate internal control. 
C) An assessment of the effectiveness of the company's internal control. 
D) A statement indicating the extent of tests performed to assess controls. 
A) A statement that management is responsible for internal control. 
B) The framework used to evaluate internal control. 
C) An assessment of the effectiveness of the company's internal control. 
D) A statement indicating the extent of tests performed to assess controls.

Question 2

Internal control is a process designed to guarantee the achievement of the objectives of reliable financial reporting,compliance with laws and regulations,and operating efficiency.

Accepted Answer

A) True 
 B)False

Question 3

COSO: A Framework for Internal Control What is internal control as defined by COSO? Also,explain the other elements of the definition that are important to internal control.

Accepted Answer

COSO defines internal control as a proce

Question 4

Which of the following is not true of the concepts that are embodied in the COSO framework of internal controls?

Accepted Answer

A) Internal controls relate to the organization's objectives. 
B) The six components of internal control are logically and operationally intertwined. 
C) Internal controls apply across all activities of the organization. 
D) All of the above are true. 
A) Internal controls relate to the organization's objectives. 
B) The six components of internal control are logically and operationally intertwined. 
C) Internal controls apply across all activities of the organization. 
D) All of the above are true.

Question 5

Which component of COSO's internal control system concerns the process that provides feedback on the effectiveness of the other four components of internal control?

Accepted Answer

A) Information and communication. 
B) Monitoring. 
C) Control activities. 
D) Risk assessment. 
A) Information and communication. 
B) Monitoring. 
C) Control activities. 
D) Risk assessment.

Question 6

The five major components of an organization's internal control are: the control environment,risk assessment,control activities,information and communication,and monitoring.

Accepted Answer

A) True 
 B)False

Question 7

Transaction controls are designed to ensure that transactions are properly valued.

Accepted Answer

A) True 
 B)False

Question 8

Managers must use professional judgment to determine whether identified control deficiencies rise to the level of a significant deficiency or material weakness.

Accepted Answer

A) True 
 B)False

Question 9

Internal control components and principles For each of the five components of internal control,list at least two related principles of internal control.n gathering the information and briefly describe each one.

Accepted Answer

Internal Control Com

Question 10

Which one of the following is not a control activity implemented in most accounting systems?

Accepted Answer

A) Segregation of duties. 
B) Competent,trustworthy employees. 
C) Authorization procedures. 
D) All of these activities are normally implemented. 
A) Segregation of duties. 
B) Competent,trustworthy employees. 
C) Authorization procedures. 
D) All of these activities are normally implemented.

Question 11

A walkthrough involves following a transaction back from when it is reflected in the financial records to when it originated to determine if the controls are effectively designed and have been implemented.

Accepted Answer

A) True 
 B)False

Question 12

Security management practices that limit access to technologies is a function included in which COSO component of internal control structure?

Accepted Answer

A) Control environment. 
B) Risk assessment. 
C) Control activities. 
D) Monitoring. 
A) Control environment. 
B) Risk assessment. 
C) Control activities. 
D) Monitoring.

Question 13

A whistleblower function within an organization should include a process for bringing important ethical and financial issues to the audit committee.

Accepted Answer

A) True 
 B)False

Question 14

IT Controls Integrated into Internal Control Evaluations Explain input controls.

Accepted Answer

The control procedures designed to assur

Question 15

A control designed to ensure that the number of sales transactions recorded in the accounting records matches the number of sales invoices entered during processing is known as which type of control?

Accepted Answer

A) Input control. 
B) Processing control. 
C) Output control. 
D) Edit control. 
A) Input control. 
B) Processing control. 
C) Output control. 
D) Edit control.

Question 16

A material weakness in internal control is a deficiency,or a combination of deficiencies,in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis.

Accepted Answer

A) True 
 B)False

Question 17

Which COSO component of internal control concerns the process of identifying,capturing,and exchanging information in a timely fashion to enable accomplishment of the organization's objectives?

Accepted Answer

A) Control activities. 
B) Information and communication. 
C) Monitoring. 
D) Control environment. 
A) Control activities. 
B) Information and communication. 
C) Monitoring. 
D) Control environment.

Question 18

Integrated audit Explain the application of an integrated audit as it relates to regulation.Discuss the reasons that this integrated approach may occur.

Accepted Answer

The Sarbanes-Oxley Act of 2002 requires

Question 19

The quality of an organization's internal control does not affect either the audit approach or the amount of testing required for an engagement.

Accepted Answer

A) True 
 B)False

Question 20

Which statement is true concerning the documentation of internal control?

Accepted Answer

A) Documentation should be sufficient to support the design and operating effectiveness of internal controls. 
B) Documentation requirements are standardized by the PCAOB. 
C) Documentation of disbursements requires paper and electronic documentation. 
D) Documentation of all transaction controls should be tested on an annual basis. 
A) Documentation should be sufficient to support the design and operating effectiveness of internal controls. 
B) Documentation requirements are standardized by the PCAOB. 
C) Documentation of disbursements requires paper and electronic documentation. 
D) Documentation of all transaction controls should be tested on an annual basis.

Which of the following is not part of management's report on internal controls?

Internal control is a process designed to guarantee the achievement of the objectives of reliable financial reporting,compliance with laws and regulations,and operating efficiency.

COSO: A Framework for Internal Control What is internal control as defined by COSO? Also,explain the other elements of the definition that are important to internal control.

Which of the following is not true of the concepts that are embodied in the COSO framework of internal controls?

Which component of COSO's internal control system concerns the process that provides feedback on the effectiveness of the other four components of internal control?

The five major components of an organization's internal control are: the control environment,risk assessment,control activities,information and communication,and monitoring.

Transaction controls are designed to ensure that transactions are properly valued.

Managers must use professional judgment to determine whether identified control deficiencies rise to the level of a significant deficiency or material weakness.

Internal control components and principles For each of the five components of internal control,list at least two related principles of internal control.n gathering the information and briefly describe each one.

Which one of the following is not a control activity implemented in most accounting systems?

A walkthrough involves following a transaction back from when it is reflected in the financial records to when it originated to determine if the controls are effectively designed and have been implemented.

Security management practices that limit access to technologies is a function included in which COSO component of internal control structure?

A whistleblower function within an organization should include a process for bringing important ethical and financial issues to the audit committee.

IT Controls Integrated into Internal Control Evaluations Explain input controls.

A control designed to ensure that the number of sales transactions recorded in the accounting records matches the number of sales invoices entered during processing is known as which type of control?

Which COSO component of internal control concerns the process of identifying,capturing,and exchanging information in a timely fashion to enable accomplishment of the organization's objectives?

Integrated audit Explain the application of an integrated audit as it relates to regulation.Discuss the reasons that this integrated approach may occur.

The quality of an organization's internal control does not affect either the audit approach or the amount of testing required for an engagement.

Which statement is true concerning the documentation of internal control?

Quality Auditing: Why It Matters

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Professional Legal Liability

Professional Auditing Standards and the Audit Opinion Formulation Process

Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Long-Term Liabilities and Stockholders Equity Transactions

Completing a Quality Audit

Audit Reports

Filters

Exam 3: Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditor

Which of the following is not part of management's report on internal controls?

Internal control is a process designed to guarantee the achievement of the objectives of reliable financial reporting,compliance with laws and regulations,and operating efficiency.

COSO: A Framework for Internal Control What is internal control as defined by COSO? Also,explain the other elements of the definition that are important to internal control.

Which of the following is not true of the concepts that are embodied in the COSO framework of internal controls?

Which component of COSO's internal control system concerns the process that provides feedback on the effectiveness of the other four components of internal control?

The five major components of an organization's internal control are: the control environment,risk assessment,control activities,information and communication,and monitoring.

Transaction controls are designed to ensure that transactions are properly valued.

Managers must use professional judgment to determine whether identified control deficiencies rise to the level of a significant deficiency or material weakness.

Internal control components and principles For each of the five components of internal control,list at least two related principles of internal control.n gathering the information and briefly describe each one.

Which one of the following is not a control activity implemented in most accounting systems?

A walkthrough involves following a transaction back from when it is reflected in the financial records to when it originated to determine if the controls are effectively designed and have been implemented.

Security management practices that limit access to technologies is a function included in which COSO component of internal control structure?

A whistleblower function within an organization should include a process for bringing important ethical and financial issues to the audit committee.

IT Controls Integrated into Internal Control Evaluations Explain input controls.

A control designed to ensure that the number of sales transactions recorded in the accounting records matches the number of sales invoices entered during processing is known as which type of control?

Which COSO component of internal control concerns the process of identifying,capturing,and exchanging information in a timely fashion to enable accomplishment of the organization's objectives?

Integrated audit Explain the application of an integrated audit as it relates to regulation.Discuss the reasons that this integrated approach may occur.

The quality of an organization's internal control does not affect either the audit approach or the amount of testing required for an engagement.

Which statement is true concerning the documentation of internal control?

Quality Auditing: Why It Matters

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Professional Legal Liability

Professional Auditing Standards and the Audit Opinion Formulation Process

Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Long-Term Liabilities and Stockholders Equity Transactions

Completing a Quality Audit

Audit Reports

Filters