Question

QUESTION 5

Auditors inspecting a sample of accounts payable balances listed on the ledger and verifying that they are true payables owed by the client gather evidence in support of the _______ assertion.

A. accuracy

B. occurrence

C. completeness

D. existence

QUESTION 6

As per the COSO Framework, the operations objectives of internal control include ________.

A. the safeguarding of assets against loss

B. the adherence to laws and regulations

C. reliability and timeliness

D. timeliness and transparency

QUESTION 7

Compensating controls are described as ________.

A. controls that deal with monetary compensation for employees and contractors

B. controls that compensate for another control’s potential ineffectiveness

C. controls that are determined to be redundant after analysis

D. controls that have been determined by the auditor to be effective

QUESTION 8

As per the COSO Framework, one of the reporting objectives of internal control pertains to ________.

A. reliability and transparency

B. efficiency of the entity’s operations,

C. adherence to laws and regulations

D. safeguarding of assets against loss

Answer 1

Question 5 - Answer is option D existence because there can be some instances when payable balance may more or less what is shown in ledger.

Question 6 - Answer is option A- the safeguarding of assets against loss.

Question 7 - Answer is option B- Controls that compensate for another control's potential ineffectiveness.

Question 8 - Answer is option A- reliability and transparency.