Exam 8: Internal control and control risk

A procedure that would most likely be used by an auditor in performing tests of control procedures that involve segregation of functions and that leave no transaction trail is:

(Multiple Choice)

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Question 81

A transaction walk-through involves:

(Multiple Choice)

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Question 82

List, in order, the steps in the auditor's process of understanding internal control and assessing control risk.

(Essay)

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Question 83

The primary emphasis of auditors is on internal controls over classes of transactions because:

(Multiple Choice)

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Question 84

Describe the three key concepts (assumptions)in the study of internal control.

(Essay)

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Question 85

An important part of effectiveness and efficiency of controls is safeguarding assets and records.This refers to:

(Multiple Choice)

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Question 86

Often, for efficiency, the auditor will ignore internal controls.This can occur because:

(Multiple Choice)

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Question 87

An effective accounting information and communication system must satisfy six transaction-related objectives.Identify the six objectives.

(Essay)

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Question 88

An internal control dictates that prices on sales invoices are verified with a standard price list by client personnel.Which of the following procedures provides the greatest assurance that this control is operating effectively?

(Multiple Choice)

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Question 89

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

(Multiple Choice)

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Question 90

If, when obtaining an understanding of control activities of a relatively small client, the auditor identified no control activities, the auditor would probably set a low assessment of control risk.

(True/False)

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Question 91

ASA 315 states that the auditor shall obtain an understanding of internal control ________ to the audit.

(Multiple Choice)

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Question 92

When the auditor's assessment of control risk is below maximum:

(Multiple Choice)

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Question 93

Discuss the objectives of internal control with which management are primarily concerned.

(Essay)

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Question 94

When documenting their understanding of a client's internal controls, auditors are required to use narratives and may optionally also use flowcharts and/or internal control questionnaires.

(True/False)

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Question 95

For internal controls that leave no documentary evidence, the auditor observes their application at year-end.

(True/False)

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Question 96

Describe five common procedures an auditor can use to obtain an understanding of internal control design.

(Essay)

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Question 97

Proper segregation of functional responsibilities calls for separation of the functions of:

(Multiple Choice)

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Question 98

The control environment consists of the actions, policies, and procedures that reflect the overall attitudes towards internal control of:

(Multiple Choice)

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Question 99

When controls leave no documentary evidence or trail:

(Multiple Choice)

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Question 100

Showing 81 - 100 of 119

A procedure that would most likely be used by an auditor in performing tests of control procedures that involve segregation of functions and that leave no transaction trail is:

A transaction walk-through involves:

List, in order, the steps in the auditor's process of understanding internal control and assessing control risk.

The primary emphasis of auditors is on internal controls over classes of transactions because:

Describe the three key concepts (assumptions)in the study of internal control.

An important part of effectiveness and efficiency of controls is safeguarding assets and records.This refers to:

Often, for efficiency, the auditor will ignore internal controls.This can occur because:

An effective accounting information and communication system must satisfy six transaction-related objectives.Identify the six objectives.

An internal control dictates that prices on sales invoices are verified with a standard price list by client personnel.Which of the following procedures provides the greatest assurance that this control is operating effectively?

Which one of the following activities would be LEAST likely to strengthen a company's 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 set a low assessment of control risk.

ASA 315 states that the auditor shall obtain an understanding of internal control ________ to the audit.

When the auditor's assessment of control risk is below maximum:

Discuss the objectives of internal control with which management are primarily concerned.

When documenting their understanding of a client's internal controls, auditors are required to use narratives and may optionally also use flowcharts and/or internal control questionnaires.

For internal controls that leave no documentary evidence, the auditor observes their application at year-end.

Describe five common procedures an auditor can use to obtain an understanding of internal control design.

Proper segregation of functional responsibilities calls for separation of the functions of:

The control environment consists of the actions, policies, and procedures that reflect the overall attitudes towards internal control of:

When controls leave no documentary evidence or trail:

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Fraud auditing

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Audit reporting

Other auditing and assurance engagements

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