AUD 3 Internal Control 10 - 2 Flashcards

Question 1

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

An auditor performs the following procedures to obtain and apply an understanding of internal control to an audit:

Step 1 – Obtain an understanding of the design of all 5 components of the entity’s internal control (CRIME) through the performance of risk assessment procedures.

Step 2 – Document the understanding of Internal Control.

Step 3 – Assess Risk of Material Misstatement (RMM) which consists of inherent risk (IR) and control risk (CR).
RMM = IR × CR

Step 4 – Develop an audit strategy to either:
o (RELY?)
Perform tests of control (TofC) to determine if CR is below maximum, reducing RMM below the level of IR and allowing for the modification of the nature, timing, and extent of further audit procedures (sub tests): or
o (NOT Rely)
Decide NOT to perform tests of controls, assessing CR at the maximum level as if the control did not exist, and measuring RMM as being equal to IR.

Step 5 – Reassess Risk of Material Misstatement and evaluate results.
o For controls for which tests of controls were performed, evaluate results to reassess RMM and determine if it is appropriate to modify the nature, timing, and extent of further audit procedures.

Step 6 – Document conclusions and determine the effect on the planned substantive procedures. At this point, the audit program needs to be developed or revised for further audit procedures.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

An auditor performs the following procedures to obtain and apply an understanding of internal control to an audit:

Step 1 – Obtain an understanding of the design of all 5 components of the entity’s internal control (CRIME) through the performance of risk assessment procedures.

Step 2 – Document the understanding of Internal Control.

Step 3 – Assess Risk of Material Misstatement (RMM) which consists of inherent risk (IR) and control risk (CR).
RMM = IR × CR

Step 4 – Develop an audit strategy to either:
o (RELY?)
Perform tests of control (TofC) to determine if CR is below maximum, reducing RMM below the level of IR and allowing for the modification of the nature, timing, and extent of further audit procedures (sub tests): or
o (NOT Rely)
Decide NOT to perform tests of controls, assessing CR at the maximum level as if the control did not exist, and measuring RMM as being equal to IR.

Step 5 – Reassess Risk of Material Misstatement and evaluate results.
o For controls for which tests of controls were performed, evaluate results to reassess RMM and determine if it is appropriate to modify the nature, timing, and extent of further audit procedures.

Step 6 – Document conclusions and determine the effect on the planned substantive procedures. At this point, the audit program needs to be developed or revised for further audit procedures.

Question 2

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The au_____is required to document key elements of the understanding of the entity and its environment,

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment,

Question 3

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is re____ed to document key elements of the understanding of the entity and its environment,

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment,

Question 4

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to doc_______ key elements of the understanding of the entity and its environment,

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment,

Question 5

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key ele____s of the understanding of the entity and its environment,

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment,

Question 6

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document k__ elements of the understanding of the entity and its environment,

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment,

Question 7

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the un_________ing of the entity and its environment,

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment,

Question 8

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the e____y and its environment,

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment,

Question 9

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its en_________t,

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment,

Question 10

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 com______s of internal control (CRIME),

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

Question 11

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as e___ of the 5 components of internal control (CRIME),

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

Question 12

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the _ components of internal control (CRIME),

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

Question 13

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of in______ control (CRIME),

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

Question 14

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (C_____),

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

Question 15

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal con____ (CRIME),

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

Question 16

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the so____s of information from which the understanding was obtained,

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was obtained,

Question 17

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of info_______ from which the understanding was obtained,

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was obtained,

Question 18

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the und_______ing was obtained,

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was obtained,

Question 19

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was ob____ed,

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was obtained,

Question 20

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was obtained,

and the r___ assessment procedures performed.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was obtained,

and the risk assessment procedures performed.

Question 21

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was obtained,

and the risk ass_________ procedures performed.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was obtained,

and the risk assessment procedures performed.

Question 22

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was obtained,

and the risk assessment pro______es performed.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was obtained,

and the risk assessment procedures performed.

Question 23

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was obtained,

and the risk assessment procedures per____ed.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,

as well as each of the 5 components of internal control (CRIME),

the sources of information from which the understanding was obtained,

and the risk assessment procedures performed.

Question 24

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to do_______

key elements of the understanding of the entity and its environment,
as well as each of the 5 components of internal control (CRIME),
the sources of information from which the understanding was obtained,
and the risk assessment procedures performed.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document

key elements of the understanding of the entity and its environment,
as well as each of the 5 components of internal control (CRIME),
the sources of information from which the understanding was obtained,
and the risk assessment procedures performed.

Question 25

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document k__ elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Question 26

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key ele____s of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Question 27

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the und_______ing of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Question 28

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (C_____), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Question 29

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the so___es of information from which the understanding was obtained, and the risk assessment procedures performed.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Question 30

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment pro____es performed.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Question 31

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

The form is influenced by the size and complexity of the e____y.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

The form is influenced by the size and complexity of the entity.

Question 32

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The f___ is influenced by the size and complexity of the entity.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The form is influenced by the size and complexity of the entity.

Question 33

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The form is influenced by the si__ and complexity of the entity.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The form is influenced by the size and complexity of the entity.

Question 34

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The form is influenced by the size and com______y of the entity.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The form is influenced by the size and complexity of the entity.

Question 35

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The form is infl____ed by the size and complexity of the entity.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The form is influenced by the size and complexity of the entity.

Question 36

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The au_____ is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

The form is influenced by the size and complexity of the entity.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

The form is influenced by the size and complexity of the entity.

Question 37

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are n_ specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Question 38

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to h__ the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Question 39

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific req________s as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Question 40

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the un_______ing of internal control is documented other than the requirement to document the understanding of all 5 components.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Question 41

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of int_____ control is documented other than the requirement to document the understanding of all 5 components.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Question 42

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is doc______ed other than the requirement to document the understanding of all 5 components.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Question 43

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requi_______ to document the understanding of all 5 components.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Question 44

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to docu_____ the understanding of all 5 components.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Question 45

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the und________ing of all 5 components.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Question 46

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of a__ 5 components.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Question 47

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 com_______s.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Question 48

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all _ components.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

Question 49

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

There are different tech____es that are commonly used for documenting the auditor’s understanding of the internal control structure.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are no specific requirements as to how the understanding of internal control is documented other than the requirement to document the understanding of all 5 components.

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

Question 50

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are diff______ techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

Question 51

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly u_ed for documenting the auditor’s understanding of the internal control structure.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

Question 52

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are com___ly used for documenting the auditor’s understanding of the internal control structure.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

Question 53

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for docu______ing the auditor’s understanding of the internal control structure.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

Question 54

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the au____’s understanding of the internal control structure.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

Question 55

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s un________ing of the internal control structure.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

Question 56

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control str______.

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

Question 57

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Question 58

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (F____):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Question 59

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flow_____
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Question 60

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal C______ Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Question 61

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = In_______ Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Question 62

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Que________ (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Question 63

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (I__)
N = Narrative or Memorandum
D = Decision table/tree

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Question 64

Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narr_____ or Memorandum
D = Decision table/tree

Answer

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer 65

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer 66

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer 67

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer 68

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer 69

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer 70

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

Answer 71

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

Answer 72

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

Answer 73

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

Answer 74

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

Answer 75

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

Answer 76

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

Answer 77

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

Answer 78

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

Answer 79

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end
and indicates which departments or groups of employees are responsible for each function,

Answer 80

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end
and indicates which departments or groups of employees are responsible for each function,

Answer 81

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end
and indicates which departments or groups of employees are responsible for each function,

Answer 82

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end
and indicates which departments or groups of employees are responsible for each function,

Answer 83

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end
and indicates which departments or groups of employees are responsible for each function,

Answer 84

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end
and indicates which departments or groups of employees are responsible for each function,

Answer 85

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end
and indicates which departments or groups of employees are responsible for each function,

Answer 86

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end
and indicates which departments or groups of employees are responsible for each function,

Answer 87

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used and how they are distributed and disposed of,

Answer 88

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used and how they are distributed and disposed of,

Answer 89

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used
and how they are distributed and disposed of,

Answer 90

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used
and how they are distributed and disposed of,

Answer 91

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used
and how they are distributed and disposed of,

Answer 92

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used
and how they are distributed and disposed of,

Answer 93

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used
and how they are distributed and disposed of,

and the interaction among departments or groups of employees.

Answer 94

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used
and how they are distributed and disposed of,

and the interaction among departments or groups of employees.

Answer 95

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used
and how they are distributed and disposed of,

and the interaction among departments or groups of employees.

Answer 96

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used
and how they are distributed and disposed of,

and the interaction among departments or groups of employees.

Answer 97

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

Answer 98

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

Answer 99

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Answer 100

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Answer 101

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Answer 102

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Answer 103

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Answer 104

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Answer 105

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Answer 106

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Answer 107

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Answer 108

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

–This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Answer 109

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 110

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 111

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 112

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 113

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 114

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 115

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 116

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 117

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 118

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 119

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 120

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 121

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 122

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 123

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 124

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 125

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 126

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

     o Testing on the CPA exam has been limited to reading flowcharts and then answering conventional questions about strengths and weaknesses in the internal control structure, and has never involved their preparation.

Answer 127

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

     o Testing on the CPA exam has been limited to reading flowcharts and then answering conventional questions about strengths and weaknesses in the internal control structure, and has never involved their preparation.

Answer 128

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

     o Testing on the CPA exam has been limited to reading flowcharts and then answering conventional questions about strengths and weaknesses in the internal control structure, and has never involved their preparation.

Answer 129

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

     o Testing on the CPA exam has been limited to reading flowcharts and then answering conventional questions about strengths and weaknesses in the internal control structure, and has never involved their preparation.

Answer 130

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

     o Testing on the CPA exam has been limited to reading flowcharts and then answering conventional questions about strengths and weaknesses in the internal control structure, and has never involved their preparation.

      o Historically, exam questions have been written so that the candidate could understand flowcharts provided, even if they had no prior knowledge of the standard meaning of the various symbols, and we do not suggest using your valuable study time in an attempt to learn all the symbols.

Answer 131

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

     o Testing on the CPA exam has been limited to reading flowcharts and then answering conventional questions about strengths and weaknesses in the internal control structure, and has never involved their preparation.

      o Historically, exam questions have been written so that the candidate could understand flowcharts provided, even if they had no prior knowledge of the standard meaning of the various symbols, and we do not suggest using your valuable study time in an attempt to learn all the symbols.

Answer 132

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

     o Testing on the CPA exam has been limited to reading flowcharts and then answering conventional questions about strengths and weaknesses in the internal control structure, and has never involved their preparation.

      o Historically, exam questions have been written so that the candidate could understand flowcharts provided, even if they had no prior knowledge of the standard meaning of the various symbols, and we do not suggest using your valuable study time in an attempt to learn all the symbols.

Answer 133

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Flowchart

     o Testing on the CPA exam has been limited to reading flowcharts and then answering conventional questions about strengths and weaknesses in the internal control structure, and has never involved their preparation.

      o Historically, exam questions have been written so that the candidate could understand flowcharts provided, even if they had no prior knowledge of the standard meaning of the various symbols, and we do not suggest using your valuable study time in an attempt to learn all the symbols.

Answer 134

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

Answer 135

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

Answer 136

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

Answer 137

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

Answer 138

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

Answer 139

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

Answer 140

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength)

and a no answer indicates a potential weakness.

Answer 141

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength)

and a no answer indicates a potential weakness.

Answer 142

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength)

and a no answer indicates a potential weakness.

Answer 143

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength)

and a no answer indicates a potential weakness.

Answer 144

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength)

and a no answer indicates a potential weakness.

Answer 145

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength)

and a no answer indicates a potential weakness.

Answer 146

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength)

and a no answer indicates a potential weakness.

Answer 147

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength) and a no answer indicates a potential weakness.

An advantage is that it easily identifies potential weaknesses in internal control

Answer 148

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

Answer 149

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

Answer 150

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

Answer 151

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

Answer 152

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire

Answer 153

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire

Answer 154

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire

Answer 155

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire

Answer 156

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire

Answer 157

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire

and it is difficult to obtain an understanding of the flow of the system using it.

Answer 158

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire

and it is difficult to obtain an understanding of the flow of the system using it.

Answer 159

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire

and it is difficult to obtain an understanding of the flow of the system using it.

Answer 160

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire

and it is difficult to obtain an understanding of the flow of the system using it.

Answer 161

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire

and it is difficult to obtain an understanding of the flow of the system using it.

Answer 162

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control but it is difficult to develop a complete and comprehensive questionnaire and it is difficult to obtain an understanding of the flow of the system using it.

Answer 163

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength) and a no answer indicates a potential weakness.

An advantage is that it easily identifies potential weaknesses in internal control but it is difficult to develop a complete and comprehensive questionnaire and it is difficult to obtain an understanding of the flow of the system using it.

Answer 164

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength) and a no answer indicates a potential weakness.

An advantage is that it easily identifies potential weaknesses in internal control but it is difficult to develop a complete and comprehensive questionnaire and it is difficult to obtain an understanding of the flow of the system using it.

Answer 165

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength) and a no answer indicates a potential weakness.

An advantage is that it easily identifies potential weaknesses in internal control but it is difficult to develop a complete and comprehensive questionnaire and it is difficult to obtain an understanding of the flow of the system using it.

Answer 166

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength) and a no answer indicates a potential weakness.

An advantage is that it easily identifies potential weaknesses in internal control but it is difficult to develop a complete and comprehensive questionnaire and it is difficult to obtain an understanding of the flow of the system using it.

Answer 167

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

o This is the most structured of the approaches and is the easiest for an inexperienced staff member in an audit to utilize.

Answer 168

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

o This is the most structured of the approaches and is the easiest for an inexperienced staff member in an audit to utilize.

Answer 169

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

o This is the most structured of the approaches and is the easiest for an inexperienced staff member in an audit to utilize.

Answer 170

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

o This is the most structured of the approaches and is the easiest for an inexperienced staff member in an audit to utilize.

Answer 171

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

o This is the most structured of the approaches and is the easiest for an inexperienced staff member in an audit to utilize.

Answer 172

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

o It is also a very popular area of testing on the CPA exam.

Answer 173

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

o This is the most structured of the approaches and is the easiest for an inexperienced staff member in an audit to utilize.

o It is also a very popular area of testing on the CPA exam.

Answer 174

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

Answer 175

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

Answer 176

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

Answer 177

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

Answer 178

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

Answer 179

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

Answer 180

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

Answer 181

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

Answer 182

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

Answer 183

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

Answer 184

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

Answer 185

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

Answer 186

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

Answer 187

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

Answer 188

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

Answer 189

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

Answer 190

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

Answer 191

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

Answer 192

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

Answer 193

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

Answer 194

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

Answer 195

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

Answer 196

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

Answer 197

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

Answer 198

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

Answer 199

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

Answer 200

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

Answer 201

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

Answer 202

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

Answer 203

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

Answer 204

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

Answer 205

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

Answer 206

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

Answer 207

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

Answer 208

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

Answer 209

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

Answer 210

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.

Answer 211

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.

Answer 212

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.

o It is tested very infrequently on the CPA exam.

Answer 213

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation is in the form of a detailed written description of the internal control structure.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.

o It is tested very infrequently on the CPA exam.

Answer 214

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.

o It is tested very infrequently on the CPA exam.

Answer 215

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.

o It is tested very infrequently on the CPA exam.

Answer 216

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.

o It is tested very infrequently on the CPA exam.

Answer 217

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.

o It is tested very infrequently on the CPA exam.

Answer 218

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.

o It is tested very infrequently on the CPA exam.

Answer 219

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.

o It is tested very infrequently on the CPA exam.

Answer 220

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.

o It is tested very infrequently on the CPA exam.

Answer 221

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 222

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 223

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 224

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 225

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 226

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 227

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 228

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 229

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 230

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 231

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 232

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 233

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 234

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 235

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 236

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 237

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 238

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 239

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 240

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 241

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 242

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 243

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 244

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 245

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 246

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 247

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 248

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

It uses Yes/No questions and each answer will direct the user to the next relevant question. This is, however, a limited tool that cannot effectively document the entire structure.

Answer 249

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

Answer 250

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

Answer 251

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

Answer 252

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

Answer 253

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

Answer 254

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 255

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 256

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 257

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 258

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 259

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 260

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 261

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 262

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 263

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 264

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 265

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 266

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 267

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure. These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

• Decision table/tree

– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

Answer 268

A

What type of information (of the understanding of internal control) that the auditor is required to document?

Key elements of the understanding of the entity and its environment
Each of the 5 components of internal control (CRIME)
The sources of information from which the understanding was obtained,
Risk assessment procedures performed

Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Answer 269

A

What type of information (of the understanding of internal control) that the auditor is required to document?

Key elements of the understanding of the entity and its environment
Each of the 5 components of internal control (CRIME)
The sources of information from which the understanding was obtained,
Risk assessment procedures performed

Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Answer 270

A

What type of information (of the understanding of internal control) that the auditor is required to document?

Key elements of the understanding of the entity and its environment
Each of the 5 components of internal control (CRIME)
The sources of information from which the understanding was obtained,
Risk assessment procedures performed

Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Answer 271

A

What type of information (of the understanding of internal control) that the auditor is required to document?

Key elements of the understanding of the entity and its environment
Each of the 5 components of internal control (CRIME)
The sources of information from which the understanding was obtained,
Risk assessment procedures performed

Document Understanding of Internal Control

The auditor is required to document key elements of the understanding of the entity and its environment, as well as each of the 5 components of internal control (CRIME), the sources of information from which the understanding was obtained, and the risk assessment procedures performed.

Answer 272

A

What are the specific requirements as to how the understanding of internal control is documented?

There are NO specific requirements as to how the understanding of internal control is documented

other than the requirement to document the understanding of all 5 components.

Answer 273

A

What are the techniques commonly used for documenting the auditor’s understanding of the internal control structure?

(FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer 274

A

What are the techniques commonly used for documenting the auditor’s understanding of the internal control structure?

(FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

Answer 275

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 2 –
2. Document Understanding of Internal Control

There are different techniques that are commonly used for documenting the auditor’s understanding of the internal control structure.

These are (FIND):

F = Flowchart
I = Internal Control Questionnaire (ICQ)
N = Narrative or Memorandum
D = Decision table/tree

- = Advantages
= Disadvantages

• F = Flowchart

VISUAL depiction of the internal control structure
Shows a process from beginning to end
Indicates which departments or groups of employees are responsible for each function
Indicates what documents are used and how they are distributed and disposed of
Indicates the interaction among departments or groups of employees
**Helpful in determining if there is adequate SEGREGATION of duties
**Helpful in TRACING documents through the system
**Giving a sense of the FLOW and sequence of transactions in the client entity
*Flowcharting requires knowledge of specialized SYMBOLS

• I = Internal Control Questionnaire (ICQ)

**Easiest to Use
Questions can be answered with a simple yes or no
YES answer = Control is properly in place (strength)
NO answer = Potential weakness
**Easily identifies potential weaknesses in internal control
*Difficult to develop a complete and comprehensive questionnaire
*Difficult to obtain an understanding of the flow of the system
The most STRUCTURED of the approaches
**EASIEST for an inexperienced audit staff member to utilize
Very popular area of testing on the CPA exam

• N = Narrative or Memorandum

Narrative approach
DETAILED written description of the internal control structure
Describes the system with WORDS rather than symbols
Easier to understand the flow of the system
Easier to understand the interrelationships among departments and employees
*NOT clearly indicate whether there is adequate segregation of duties
*Difficult to visualize the flow of documentation
*Can be cumbersome
*Not commonly used

• D = Decision table/tree
- Client employee choose from several alternative actions and documenting such activities
- May best be accomplished by
preparing a decision table that lists each possible condition and the actions that will result from each
- Depicts the logic of an operation or process
- Yes/No questions
- Each answer will direct the user to the next relevant question
- *Limited tool
- *Cannot effectively document the entire structure

Answer 276

A

What type of techniques used for documenting understanding of internal control that is a visual depiction of the internal control structure?

• Flowchart

• Flowchart – This is a visual depiction of the internal control structure that shows a process from beginning to end and indicates which departments or groups of employees are responsible for each function, what documents are used and how they are distributed and disposed of, and the interaction among departments or groups of employees.

Answer 277

A

What type of techniques used for documenting understanding of internal control that shows a process from beginning to end?

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used and how they are distributed and disposed of,

and the interaction among departments or groups of employees.

Answer 278

A

What type of techniques used for documenting understanding of internal control that indicates which departments or groups of employees are responsible for each function?

• F = Flowchart

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used and how they are distributed and disposed of,

and the interaction among departments or groups of employees.

Answer 279

A

What type of techniques used for documenting understanding of internal control that indicates which departments or groups of employees are responsible for each function?

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used and how they are distributed and disposed of,

and the interaction among departments or groups of employees.

Answer 280

A

What type of techniques used for documenting understanding of internal control that indicate the interaction among departments or groups of employees?

• Flowchart

– This is a visual depiction of the internal control structure that shows a process from beginning to end

and indicates which departments or groups of employees are responsible for each function,

what documents are used and how they are distributed and disposed of,

and the interaction among departments or groups of employees.

Answer 281

A

What type of techniques used for documenting understanding of internal control that is helpful in determining if there is adequate segregation of duties?

• Flowchart

• Flowchart
– This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 282

A

What type of techniques used for documenting understanding of internal control that is helpful in tracing documents through the system?

• Flowchart

• Flowchart
– This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 283

A

What type of techniques used for documenting understanding of internal control that does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity?

• Flowchart

• Flowchart
– This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 284

A

What type of techniques used for documenting understanding of internal control that requires knowledge of specialized symbols?

• Flowchart

• Flowchart
– This form of documentation is particularly helpful in determining if there is adequate segregation of duties as well as tracing documents through the system.

Flowcharting requires knowledge of specialized symbols but does a good job of giving the auditor a sense of the flow and sequence of transactions in the client entity.

Answer 285

A

What type of techniques used for documenting understanding of internal control that is usually in the form of a series of questions that can be answered with a simple yes or no?

Internal Control Questionnaire (ICQ)
Decision table/tree

• Internal Control Questionnaire (ICQ)
– This is usually in the form of a series of questions that can be answered with a simple yes or no.
They are usually designed so that a yes answer indicates that a control is properly in place (strength) and a no answer indicates a potential weakness.

• Decision table/tree
– It uses Yes/No questions and each answer will direct the user to the next relevant question.
This is, however, a limited tool that cannot effectively document the entire structure.

Answer 286

A

What type of techniques used for documenting understanding of internal control that a yes answer indicates that a control is properly in place?

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength) and a no answer indicates a potential weakness.

Answer 287

A

What type of techniques used for documenting understanding of internal control that a no answer indicates a potential weakness?

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

They are usually designed so that a yes answer indicates that a control is properly in place (strength) and a no answer indicates a potential weakness.

Answer 288

A

What type of techniques used for documenting understanding of internal control that is easily identifies potential weaknesses in internal control?

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire and it is difficult to obtain an understanding of the flow of the system using it.

Answer 289

A

What type of techniques used for documenting understanding of internal control that is difficult to develop a complete and comprehensive questionnaire?

• Internal Control Questionnaire (ICQ)

– An advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire and it is difficult to obtain an understanding of the flow of the system using it.

Answer 290

A

What are disadvantages of Internal Control Questionnaire (ICQ)?

It is difficult to develop a complete and comprehensive questionnaire and

it is difficult to obtain an understanding of the flow of the system using it.

Answer 291

A

What is an advantage of Internal Control Questionnaire (ICQ)?

An advantage is that it easily identifies potential weaknesses in internal control

Answer 292

A

What type of techniques used for documenting understanding of internal control that is the most structured of the approaches and is the easiest for an inexperienced staff member in an audit to utilize?

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

o This is the most structured of the approaches and is the easiest for an inexperienced staff member in an audit to utilize.

o It is also a very popular area of testing on the CPA exam.

Answer 293

A

What type of techniques used for documenting understanding of internal control that is the most structured of the approaches?

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

o This is the most structured of the approaches and is the easiest for an inexperienced staff member in an audit to utilize.

Answer 294

A

What type of techniques used for documenting understanding of internal control that is difficult to develop a complete and comprehensive questionnaire and it is difficult to obtain an understanding of the flow of the system?

• Internal Control Questionnaire (ICQ)

– This is usually in the form of a series of questions that can be answered with a simple yes or no.

n advantage is that it easily identifies potential weaknesses in internal control

but it is difficult to develop a complete and comprehensive questionnaire

and it is difficult to obtain an understanding of the flow of the system using it.

Answer 295

A

What type of techniques used for documenting understanding of internal control that is in the form of a detailed written description of the internal control structure?

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

Answer 296

A

What type of techniques used for documenting understanding of internal control that describes the system in with words rather than symbols?

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

It generally describes the system in a manner similar to how it is depicted in a flowchart but with words rather than symbols.

Answer 297

A

What type of techniques used for documenting understanding of internal control that makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it?

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

Answer 298

A

What are disadvantages of Narrative or Memorandum?

Answer:

It does not clearly indicate whether there is adequate segregation of duties,

and it is often difficult to visualize the flow of documentation.

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.
o It is tested very infrequently on the CPA exam.

Answer 299

A

What type of techniques used for documenting understanding of internal control that can be cumbersome and is not commonly used?

• Narrative or Memorandum

– This form of documentation, often referred to as the narrative approach, is in the form of a detailed written description of the internal control structure.

This makes it easier for a user to understand the flow of the system and the interrelationships among departments and employees that are part of it.

It does not clearly indicate whether there is adequate segregation of duties, however, and it is often difficult to visualize the flow of documentation.

o This approach can be cumbersome and is not commonly used.
o It is tested very infrequently on the CPA exam.

Answer 300

A

What type of techniques used for documenting understanding of internal control that require a client employee to choose from several alternative actions and documenting such activities?

• Decision table/tree

• Decision table/tree
– Parts of an internal control structure may require a client employee to choose from several alternative actions depending on the conditions faced, and documenting such activities.

Answer 301

A

What type of techniques used for documenting understanding of internal control that may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each?

• Decision table/tree

• Decision table/tree
– This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

It uses Yes/No questions and each answer will direct the user to the next relevant question. This is, however, a limited tool that cannot effectively document the entire structure.

Answer 302

A

What type of techniques used for documenting understanding of internal control that depicts the logic of an operation or process?

• Decision table/tree

• Decision table/tree
– This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

Answer 303

A

What type of techniques used for documenting understanding of internal control that uses Yes/No questions and each answer will direct the user to the next relevant question?

• Decision table/tree

• Decision table/tree
– This may best be accomplished by preparing a decision table that lists each possible condition and the actions that will result from each (depicts the logic of an operation or process).

It uses Yes/No questions and each answer will direct the user to the next relevant question. This is, however, a limited tool that cannot effectively document the entire structure.

Answer 304

A

What type of techniques used for documenting understanding of internal control that is a limited tool that cannot effectively document the entire structure?

• Decision table/tree

• Decision table/tree
– It uses Yes/No questions and each answer will direct the user to the next relevant question.

This is, however, a limited tool that cannot effectively document the entire structure.

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AUD 3 Internal Control 10 - 2 Flashcards

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