AUD 1

Question 1

component of internal control

Answer 1

COSO’s Internal Control Integrated Framework identifies five components of an internal control system: (1) control environment; (2) risk assessment; (3) control activities; (4) information and communication system; and (5) monitoring.

Question 2

variable sampling vs attribute sampling

Answer 2

variables sampling deals with dollar amounts (or quantities)
Attributes sampling addresses deviation rates from various controls.