Requiring a manager to sign off on purchases of $100 or more is an example of:
A. restricted access.
B. proper authorization.
C. an audit trail.
D. internal control limitations
Requiring a manager to sign off on purchases of $100 or more is an example of proper authorization. |
Proper authorization is a type of internal control which required amount above certain threshold to be properly authorized. |
Option B proper authorization is correct |
Requiring a manager to sign off on purchases of $100 or more is an example of:...
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...
When the human resources manager wants to add a new employee to the sales department, the manager would use which language? a Data Manipulation Language b Data Query Language c Data Report Language d Data Definition Language Inspecting information packets as they travel across computer networks are referred to as a sniffers. b zombies. c botsquats. d evil twins. Spyware is a software that monitors whether spies are looking at the computer. b software that tells the user if anyone...
MULTIPLE CHOICE QUESTIONS! 1)In obtaining an understanding of an entity's internal control relevant to audit planning, an auditor is required to obtain knowledge about the a) Controls related to each principal transaction class and account balance. b) Consistency with which controls are currently being applied. c) Effectiveness of controls that have been implemented. d) Design of the controls pertaining to internal control components. 2) In a good system of segregation of duties, which of the following duties should be segregated?...
These are more choices to choose from. John Josephs, an audit manager for Tip, Acanoe & Tylerto, was asked to speak at a dinner meeting of the local Small Business Administration Association. The president of the association has suggested that he talk about the various phases of the audit process to help small business owners better understand what auditors do. John has asked you, his trusted assistant, to prepare an outline for his speech. He suggests that you answer the...
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...
1. Auditing includes the concept of materiality. Which of the following would be considered material? a)The auditor confirms accounts receivable and notices one company has not sent in the confirmation form b)The auditor discovers a $200 error in the inventory account balance of $500,000 c)The auditor discovers related-party transactions are not recorded d)The auditor notices the name of the new CEO, hired in January 20x2 is not included in the annual report for 20x1 2. Substantive procedures would include: a)Gathering...
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...
The annual inspections by the PCAOB of registered audit firms that have more than 100 public ocmpany audits is an example of A Interoffice reviews B.Engagement quality reviews C. External inspections D. Concurrent partner reviews
1. You have performed a review engagement for XYZ Limited. The level of assurance to be expressed in your report is: a) Reasonable b) Low c) Limited d) None 2. Consider the following characteristics of business: i. Inadequate segregation of duties ii. General lack of mitigating (compensating) controls iii. More reliance on test of controls iv. More reliance on substantive procedures From an audit perspective, a small business would generally exhibit: a) I and iv only b) i and ii...
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...