Internal Control
The primary purpose of performing tests of control is to provide reasonable assurance that _____
If internal control is effective
Accounting system is well documented
Written evidence is there to support transactions
None of these
If internal control is effective
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If the auditor assesses control risk as high ______A. Document the conclusions
B. Documents the reasons along with conclusions
C. Perform tests of control
D. Perform walk through tests
Which of the following are included in test of controls?
A. Performance and observation
B. Inquiry and analytical procedures
C. Comparison and conformation
D. Inspection and verification
In comparison to the independent auditor, an internal auditor is more likely to concerned with:
A. Cost accounting system
B. Internal control system
C. Legal compliance
D. Accounting system
The overall attitude and awareness of an entity’s a board of directors concerning the importance of internal control is reflected in:
A. Accounting controls
B. Control environment
C. Control procedures
D. Supervision
Tests of control are not concerned with:
A. Existence of controls
B. Effectiveness of controls
C. Continuity of controls
D. Designing of controls
Proper segregation of duties reduces the opportunities in which a person welt both:
A. Establish controls and executes them
B. Records cash receipts and cash payments
C. Perpetuate errors and frauds and conceals them
D. Record the transaction in journal and ledger
The independence of an internal auditor will most likely be assured if he report to the:
A. President Finance
B. President system
C. Managing Director
D. CEO
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