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18) Which of the following is true of internal control? A) A company's outside auditor is...
Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee
1. Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. Management's failure to renegotiate unfavorable long-term purchase commitments.B. Recurring operating losses that may indicate going concern problems.C. Evidence of a lack of objectivity by those responsible for accounting decisions.D. Management's current plans to reduce its ownership equity in the entity. 2. After obtaining an understanding of internal control and arriving at a preliminary assessed level...
1.Which of the following is not one of the steps the auditor must perform to assess...
1.Which of the following is not one of the steps the auditor must perform to assess control risk at less than “high” for a financial statement assertion? A) obtain an understanding of internal control B) identify controls that address all relevant assertions in the financial statements C) make a preliminary assessment of control risk based on the design of relevant controls D) test the operating effectiveness of the controls that must be effective to reduce control risk 2.Which of the...
1. Consider the following statements: I. Per COSO, Control Activities are the policies and procedures...
1. Consider the following statements: I. Per COSO, Control Activities are the policies and procedures that help insure that management’s directives are carried out. II. A Reliance Strategy is used when control risk is considered High. a. I is true; II is true b. I is true; II is false c. I is false; II is true d. I is false; II is false 2. Management's attitude toward aggressive financial reporting and its...
5. Which of the following statements about maintaining a strong system of internal control is true?...
5. Which of the following statements about maintaining a strong system of internal control is true? a. The individual who receives cash is also responsible for entering the collection of cash into the accounting records. b. Internal controls are easy to administer and achieve with a small company. c. Numeric controls such as pre-numbered documents d. Bank reconciliations prepared by the same person who writes checks to vendors
1. Identify the five components of a good internal control system. 2. "Internal control is concerned...
1. Identify the five components of a good internal control system. 2. "Internal control is concerned only with enhancing the accuracy of the accounting records." Do you agree? Explain. 3. Discuss how the Sarbanes-Oxley Act has increased the importance of internal control to top managers of a company. 4. What principles of internal control apply to most organizations? 5. How do documentation procedures contribute to good internal control? 6. What internal control objectives are met by physical controls? in internal...
Which of the following statements about the annual report are true?
Which of the following statements about the annual report are true? (Select all that apply.)Check All That ApplyAnnual reports of public companies include an assessment of the company's internal control procedures.The company's auditor prepares the financial statements while its management prepares the other information and disclosures required in the annual report.The management's discussion and analysis section of the annual report provides an unbiased perspective of a company's operations, liquidity, and capital resources.The proxy statement contains disclosures on compensation to directors...
obtaining an First auditor decided not to perform tests of controls for purposes A. The available evidential matter obtained darough tes control risk of the internal control structure and esing ca...
obtaining an First auditor decided not to perform tests of controls for purposes A. The available evidential matter obtained darough tes control risk of the internal control structure and esing cantrol risk of an eatity.n decided ha most liknly on in the assessed level of control risk a juastified for certain in BA reducti of controls would not support an increased C. It would be inefficient to perforn tests of controls that would result ina tests. controls that would result...
l 6 of 10 (4 complete HW Score: 22.57% 22.57 of 1 score: ot 10 pts...
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6 of 10 (4 complete HW Score: 22.57% 22.57 of 1 score: ot 10 pts E7-16 (book/static) Match the following terms with their definitions (Use each definition only one) (Consider the following definitions) More Info 1. Internal control 2. Control procedures 3. Firewalls Encryption 5. Environment 6 Information system 7. Separation of duties 8. Collusion 9. Documents 10. Audits 11. Operational efficiency 12. Risk assessment 13. Sarbanes-Oxley Act a. Two or more people working together to overcome internal controls...
1) All of the following are purposes of internal control except to: A) Promote operational inefficiency....
1) All of the following are purposes of internal control except to: A) Promote operational inefficiency. B) Safeguard assets. C) Ensure accurate and reliable accounting records. D) Prevent and detect error and fraud. 2) An effective accounting information system: A) allows employees flexibility in setting the working hours. B) guarantee a company will not go bankrupt. C) includes control, compatibility, flexibility, and a favourable cost/benefit relationship. D) promote operational efficiency. E) will prevent fraud in all cases. 3) Paying top...
1.Which of the following statements is TRUE: i) Internal audit’s role is to assess if financial...
1.Which of the following statements is TRUE: i) Internal audit’s role is to assess if financial statements are true and fair ii)External auditors are responsible for the identification of all fraud iii)Internal auditors report their audit opinions to shareholders a)i and ii only b)i and iii only c)ii and iii d)None of the above 2.Ruby, an external auditor, has been asked by the Finance Director of Aberdeen Ltd. if she will be the company’s external auditor. Before agreeing to the...
5. Which of the following statements about maintaining a strong system of internal control is true? a. The individual who receives cash is also responsible for entering the collection of cash into the accounting records. b. Internal controls are easy to administer and achieve with a small company. c. Numeric controls such as pre-numbered documents d. Bank reconciliations prepared by the same person who writes checks to vendors
1. Identify the five components of a good internal control system. 2. "Internal control is concerned only with enhancing the accuracy of the accounting records." Do you agree? Explain. 3. Discuss how the Sarbanes-Oxley Act has increased the importance of internal control to top managers of a company. 4. What principles of internal control apply to most organizations? 5. How do documentation procedures contribute to good internal control? 6. What internal control objectives are met by physical controls? in internal...
obtaining an First auditor decided not to perform tests of controls for purposes A. The available evidential matter obtained darough tes control risk of the internal control structure and esing cantrol risk of an eatity.n decided ha most liknly on in the assessed level of control risk a juastified for certain in BA reducti of controls would not support an increased C. It would be inefficient to perforn tests of controls that would result ina tests. controls that would result...
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6 of 10 (4 complete HW Score: 22.57% 22.57 of 1 score: ot 10 pts E7-16 (book/static) Match the following terms with their definitions (Use each definition only one) (Consider the following definitions) More Info 1. Internal control 2. Control procedures 3. Firewalls Encryption 5. Environment 6 Information system 7. Separation of duties 8. Collusion 9. Documents 10. Audits 11. Operational efficiency 12. Risk assessment 13. Sarbanes-Oxley Act a. Two or more people working together to overcome internal controls...
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