Internal control ________.
A. relates only to a client’s IT systems |
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B. relates to the efficiency of the internal audit function |
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C. is a very broad concept and can encompass all of the elements of an organization |
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D. is unrelated to the audit |
Option C | |
Internal control is a procedure established by management for safeguarding its assets, increase accountability so as to ensure increase in operating effectiveness and efficiency |
Internal control ________. A. relates only to a client’s IT systems B. relates to the efficiency of the inte...
Every audit firm has its approach for understanding a client’s internal control structure. Some firms use a standardized internal control questionnaire to evaluate controls that are in place whereas other firms do not rely on internal controls at all and plan their audits as if there are no controls in place or consider controls as not effective. Evaluate each of these approaches to assess a client’s internal controls from an external auditor’s perception. Include in your evaluation: What effect, if...
Every audit firm has its approach for understanding a client’s internal control structure. Some firms use a standardized internal control questionnaire to evaluate controls that are in place whereas other firms do not rely on internal controls at all and plan their audits as if there are no controls in place or consider controls as not effective. Evaluate each of these approaches to assess a client’s internal controls from an external auditor’s perception. Include in your evaluation: What effect, if...
1) According to the IPPF, an internal auditor assigned to an audit engagement: A) Must be an expert in the area being audited B) Is responsible for detecting fraud C) Must be proficient and exercise due professional care D) Must be a Certified Internal Auditor E) All of the above 2) Internal auditing needs to consider risk in A) Developing the annual audit plan B) Conducting audit engagements C) Providing assurance to the board on the effectiveness of risk management processes D) All of the above E) None of the...
Information systems design and control is improtant: a. only for new information systems b. only for accounting systems c. for all systems except those by established suppliers such as Sap and oracle d. for all new and existing systems
QUESTION 3 Monitoring internal control systems is the primary responsibility of the: Internal auditors External auditors Board of Directors Senior management QUESTION 4 Which of the following elements of an organization requires people to be accountable to superiors? Common goal or purpose Hierarchy of authority Coordination of effort Division of labor QUESTION 5 The flows of raw materials, components, finished goods, services, or information through intermediaries to ultimate consumers occur across the functions in an organization’s or separate organization’s: Integrated...
11) Risk management should A) Focus on loss minimization only B) Not be an objective by itself C) Be driven by internal audit D) Be rules-based so it is the same throughout the organization E) Should be software driven 12) What is typically the weakest link in internal controls? A) Technology B) The human elements C) Lack of funding D) Lack of a risk assessment E) No internal audit department 13) Which of the following is not likely to cause...
29. Internal controls are concerned with. a. only manual systems of accounting. b. the extent of government regulations. c. safeguarding assets. d. preparing income tax returns. 30. Internal control is defined, in part, as a plan that safeguards a. all balance sheet accounts. b. assets. c. liabilities. d. capital stock. Which of the following is not an internal control procedure for cash? a. Payments should be made with cash. b. There should be limited access to cash. c. The amount...
Internal control systems: A. guarantee the safeguard of assets. B. are regulated by the Securities and Exchange Commission. C. are the same from company to company. D. are designed by an organization's management
Internal control systems: O A. are regulated by the Securities and Exchange Commission. B. are designed by an organization's management. C. guarantee the safeguard of assets. D. are the same from company to company.
1. The Sarbanes-Oxley Act requires: A. all public companies to issue an internal control report. B. all public companies to define adequate internal controls. C. the auditor of public companies to design effective ICFR. D. provides for all three of the above. 2. When planning an audit, the auditor's assessed level of control risk is: A. determined by using actuarial tables. B. calculated by using the audit risk model. C. an economic issue, trading off the costs of testing controls...