Question

1. The programmed verification of a customer number is a ____ control.

a. preventive    b. detective c. corrective d. application

2. In general, material irregularities perpetrated by which of the following are most difficult to detect?

a. cashier b. key-punch operator c. internal auditor d. controller

3. Which of the following is least likely to be evidence the auditor examines to determine whether operations are in compliance with the internal control systems?

a. records documenting usage of EDP programs b. canceled supporting documents c. confirmations of accounts receivable d. signatures on authorization forms

4. When an auditor considers a client's internal control, which of the following is ordinarily a type of control activity that is considered?

a. risk assessment over cash disbursements. b. segregation of duties over payroll c. inclusion of the president as a member of the audit committee d. management's monitoring policies over cash receipts

5. Proper segregation of functional responsibilities calls for separation of the

	a) Authorization, approval, and execution functions.
	b) Authorization, execution, and payment functions.
	c) Receiving, shipping, and custodial functions.
	d) Authorization, recording, and custodial functions.

Answer 1

Question No. (1)

Answer -

The programmed verification of a customer number is a Preventive control.

Hence, Option - (a) is Correct.

.

Question No. (2)

Answer -

In general, material irregularities perpetrated by controller are most difficult to detect.

Hence, Option - (d) is Correct.

.

Question No. (3)

Answer -

Confirmations of accounts receivable is least likely to be evidence the auditor examines to determine whether operations are in compliance with the internal control systems.

Hence, Option - (c) is Correct.

.

Question No. (4)

Answer -

When an auditor considers a client's internal control, segregation of duties over payroll is ordinarily a type of control activity that is considered.

Hence, Option - (b) is Correct.

.

Question No. (5)

Answer -

Proper segregation of functional responsibilities calls for separation of the authorization, recording, and custodial functions.

Hence, Option - (d) is Correct.