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CPA AUD Flashcards > AUD 3 Internal Control 16 - 3 Operating Cycles - Investing and Financing Cycle > Flashcards

AUD 3 Internal Control 16 - 3 Operating Cycles - Investing and Financing Cycle Flashcards

1
Q

Investing and Financing Cycle
Internal Controls

Inherent risk associated with investments, particularly marketable securities, is generally high, largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

Inherent Risk Assessment (IR): Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
A

Investing and Financing Cycle
Internal Controls

Inherent risk associated with investments, particularly marketable securities, is generally high, largely due to the fact that their value is readily determinable and they are frequently easily transferrable.

Inherent Risk Assessment (IR): Factors affecting inherent risk in this area include:

  • Management’s investment objectives
  • Complexity of the security or derivative instrument
  • Whether the transaction giving rise to the security involved cash
  • The entities with the security or derivative in question
  • Whether the derivative is stand-alone or an embedded feature of a separate agreement
  • External factors affecting management’s assertions such as credit, market and legal risks
  • Evolving GAAP with respect to derivatives and investments
  • Reliance on outside parties
  • Assumptions about future conditions
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2
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

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3
Q

Investing and Financing Cycle
Internal Controls

Internal c______s reduce control risk (CR)

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR)

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4
Q

Investing and Financing Cycle
Internal Controls

Internal controls re____ control risk (CR)

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR)

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5
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control r___ (CR)

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR)

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6
Q

Internal controls reduce ________________ (CR)

A

Internal controls reduce control risk (CR)

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7
Q

Internal controls reduce control risk (__)

A

Internal controls reduce control risk (CR)

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8
Q

Internal ________ reduce control risk (CR)

A

Internal controls reduce control risk (CR)

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9
Q

_________________ reduce control risk (CR)

A

Internal controls reduce control risk (CR)

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10
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a hi__ inherent risk (IR),

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),

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11
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent r__k (IR),

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),

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12
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high in_______ risk (IR),

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),

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13
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (__),

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),

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14
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (R__) can be reduced.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

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15
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (____) can be reduced.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

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16
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
ri__ of material misstatement (RMM) can be reduced.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

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17
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of m________ misstatement (RMM) can be reduced.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

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18
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material mis_________ (RMM) can be reduced.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

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19
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be re___ed.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

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20
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

Internal Control –> Reduce __

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

Internal Control –> Reduce CR

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21
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

Internal Co____ –> Reduce CR

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

Internal Control –> Reduce CR

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22
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

Internal Control –> Reduce CR
even with High IR,
RMM is re___ed

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

Internal Control –> Reduce CR
even with High IR,
RMM is reduced

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23
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of _____________________ (RMM) can be reduced.

Internal Control –> Reduce CR
even with High IR,
RMM is reduced

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

Internal Control –> Reduce CR
even with High IR,
RMM is reduced

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24
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

Internal Control –> Reduce CR
even with High IR,
____ is reduced

              RMM  =        IR    x       CR

reduced RMM = high IR x reduced CR

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

Internal Control –> Reduce CR
even with High IR,
RMM is reduced

              RMM  =        IR    x       CR

reduced RMM = high IR x reduced CR

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25
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

Internal Control –> Reduce CR
even with High IR,
RMM is reduced

              RMM  =        IR    x       CR

reduced RMM = high IR x reduced CR

When internal controls in relation to investments are expected to reduce control risk below the maximum,

reducing the risk of material misstatement,

specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk (CR) such that,
regardless of a high inherent risk (IR),
risk of material misstatement (RMM) can be reduced.

Internal Control –> Reduce CR
even with High IR,
RMM is reduced

              RMM  =        IR    x       CR

reduced RMM = high IR x reduced CR

When internal controls in relation to investments are expected to reduce control risk below the maximum,

reducing the risk of material misstatement,

specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

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26
Q

Investing and Financing Cycle
Internal Controls

When internal co_____s in relation to investments are expected to reduce control risk below the maximum,

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk below the maximum,

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27
Q

Investing and Financing Cycle
Internal Controls

When int_____ controls in relation to investments are expected to reduce control risk below the maximum,

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk below the maximum,

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28
Q

Investing and Financing Cycle
Internal Controls

When internal controls in rel_____ to investments are expected to reduce control risk below the maximum,

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk below the maximum,

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29
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to inv_______s are expected to reduce control risk below the maximum,

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk below the maximum,

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30
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are ex____ed to reduce control risk below the maximum,

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk below the maximum,

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31
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to re____ control risk (CR) below the maximum,

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

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32
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce co_____ r___ (CR) below the maximum,

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

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33
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) be___ the maximum,

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

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34
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maxi___,

reducing the risk of material misstatement,

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement,

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35
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the ri__ of material misstatement (RMM),

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

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36
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

re___ing the risk of material misstatement (RMM),

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

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37
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific con____s are associated with management assertions

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions

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38
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are ass______ed with management assertions

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions

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39
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with m_________ assertions

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions

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40
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management ass______s and tests of controls are performed

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls are performed

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41
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and t___s of controls are performed

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed

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42
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of co______ (TofC) are performed

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed

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43
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are pe_____ed to gather evidential matter

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed to gather evidential matter

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44
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed

to gather evi______ial matter

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed

to gather evidential matter

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45
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed

to ga___er evidential matter

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed

to gather evidential matter

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46
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed

to gather evidential matter regarding their op____ing effectiveness.

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed

to gather evidential matter regarding their operating effectiveness.

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47
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed

to gather evidential matter regarding their operating ef________ess.

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed

to gather evidential matter regarding their operating effectiveness.

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48
Q

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed

to gather evidential matter regarding their operating effectiveness.

Internal Control –> Reduce CR be___ maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

Perform Tests of Controls
for operating effectiveness

A

Investing and Financing Cycle
Internal Controls

When internal controls in relation to investments are expected to reduce control risk (CR) below the maximum,

reducing the risk of material misstatement (RMM),

specific controls are associated with management assertions and tests of controls (TofC) are performed

to gather evidential matter regarding their operating effectiveness.

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

Perform Tests of Controls
for operating effectiveness

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49
Q

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below ma______

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

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50
Q

Investing and Financing Cycle
Internal Controls

Internal Control –> Re____ CR below maximum

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

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51
Q

Investing and Financing Cycle
Internal Controls

Internal Co_____ –> Reduce CR below maximum

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

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52
Q

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < ___%

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%

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53
Q

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce __ < 100%

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%

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54
Q

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < _.0

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

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55
Q

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> R__ is reduced

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

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56
Q

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is re___ed

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

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57
Q

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> ____ is reduced

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

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58
Q

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

Perform T___s of Controls
for operating effectiveness

              RMM  =        IR    x       CR

reduced RMM = high IR x reduced CR

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

Perform Tests of Controls
for operating effectiveness

              RMM  =        IR    x       CR

reduced RMM = high IR x reduced CR

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59
Q

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

Perform Tests of C_______s
for operating effectiveness

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

Perform Tests of Controls
for operating effectiveness

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60
Q

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

Perform Tests of Controls
for o_______ing effectiveness

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

Perform Tests of Controls
for operating effectiveness

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61
Q

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

Perform Tests of Controls
for operating eff__________

A

Investing and Financing Cycle
Internal Controls

Internal Control –> Reduce CR below maximum

Internal Control –> Reduce CR < 100%
Internal Control –> Reduce CR < 1.0

then –> RMM is reduced

Perform Tests of Controls
for operating effectiveness

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62
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce co_____ ri__ such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

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63
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, rega______ of a hi__ inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

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64
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high in______ ri__, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

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65
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, ri__ of material misstatement can be re___ed.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

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66
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk be___ the max____, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

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67
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, re___ing the r___ of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

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68
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific co_____s are as______ed with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

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69
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with ma________ ass______ and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

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70
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and t___s of controls are p_______ed to gather evidential matter regarding their operating effectiveness.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

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71
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to ga____ evidential matter re____ing their operating effectiveness.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

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72
Q

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their op_____ing eff_________ss.

A

Investing and Financing Cycle
Internal Controls

Internal controls reduce control risk such that, regardless of a high inherent risk, risk of material misstatement can be reduced.

When internal controls in relation to investments are expected to reduce control risk below the maximum, reducing the risk of material misstatement, specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

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73
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

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74
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific con____s applicable to assertions

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions

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75
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Id_____y specific controls applicable to assertions

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions

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76
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify spe_____ controls applicable to assertions

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions

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77
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to as________ and gather evidential matter

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter

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78
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and ga____ evidential matter

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter

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79
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evi_______ matter

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter

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80
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their op____ing effectiveness

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness

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81
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating eff_________ (tests of controls).

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

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82
Q

Investing and Financing Cycle
Internal Controls

Control Risk Ass________ (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

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83
Q

Investing and Financing Cycle
Internal Controls

Con____ Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

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84
Q

Investing and Financing Cycle
Internal Controls

Control R___ Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

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85
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (t___s of controls).

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

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86
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of co______s).

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

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87
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
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88
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):
Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

Examples of controls:

• Monitoring of inv________ activities and reporting by independent control staff;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):
Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

Examples of controls:

• Monitoring of investment activities and reporting by independent control staff;

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89
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):
Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

Examples of controls:

• M_______ing of investment activities and reporting by independent control staff;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):
Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

Examples of controls:

• Monitoring of investment activities and reporting by independent control staff;

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90
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Monitoring of investment a_____ies and reporting by independent control staff;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Monitoring of investment activities and reporting by independent control staff;

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91
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Monitoring of investment activities and r______ing by independent control staff;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Monitoring of investment activities and reporting by independent control staff;

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92
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Monitoring of investment activities and reporting by ind_________ control staff;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Monitoring of investment activities and reporting by independent control staff;

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93
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Monitoring of investment activities and reporting by independent c______ staff;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Monitoring of investment activities and reporting by independent control staff;

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94
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Monitoring of investment activities and reporting by independent control st__f;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Monitoring of investment activities and reporting by independent control staff;

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95
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior ma________ approval of transactions;
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
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96
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Se____ management approval of transactions;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Senior management approval of transactions;

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97
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Senior management app_____ of transactions;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Senior management approval of transactions;

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98
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Senior management approval of tra_______s;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Senior management approval of transactions;

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99
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

  • Senior management approval of transactions;
  • Accurate ri__ measurement systems for investments and derivatives;
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
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100
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Accurate risk mea________ systems for investments and derivatives;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Accurate risk measurement systems for investments and derivatives;

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101
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Accurate risk measurement sy_____s for investments and derivatives;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Accurate risk measurement systems for investments and derivatives;

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102
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Accurate risk measurement systems for inv________s and derivatives;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Accurate risk measurement systems for investments and derivatives;

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103
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Ac______ risk measurement systems for investments and derivatives;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Accurate risk measurement systems for investments and derivatives;

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104
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Accurate risk measurement systems for investments and der_______s;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Accurate risk measurement systems for investments and derivatives;

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105
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to co_____ account balances;
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
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106
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Re_____ reconciliations to control account balances;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reconciliations to control account balances;

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107
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reco________s to control account balances;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reconciliations to control account balances;

108
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reconciliations to control ac______ balances;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reconciliations to control account balances;

109
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reconciliations to control account b_______es;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reconciliations to control account balances;

110
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

  • Regular reconciliations to control account balances;
  • Definitions and regular re____s of limits and constraints on investment activities;
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities;
111
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Definitions and re_____ reviews of limits and constraints on investment activities;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Definitions and regular reviews of limits and constraints on investment activities;

112
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Def______s and regular reviews of limits and constraints on investment activities;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Definitions and regular reviews of limits and constraints on investment activities;

113
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Definitions and regular reviews of l____ts and constraints on investment activities;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Definitions and regular reviews of limits and constraints on investment activities;

114
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Definitions and regular reviews of limits and con_______s on investment activities;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Definitions and regular reviews of limits and constraints on investment activities;

115
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Definitions and regular reviews of limits and constraints on inv________ activities;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Definitions and regular reviews of limits and constraints on investment activities;

116
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Definitions and regular reviews of limits and constraints on investment ac_____ies;

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Definitions and regular reviews of limits and constraints on investment activities;

117
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular re____s of controls by senior management or some independent body.
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
118
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Re_____ reviews of controls by senior management or some independent body.

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

119
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of con____s by senior management or some independent body.

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

120
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by se____ management or some independent body.

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

121
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior m_________ or some independent body.

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

122
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some inde_________ body.

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

123
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent b__y.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),
124
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (in\_\_\_\_\_\_\_s) 
    the auditor’s acceptable level of 
    DR↓ (decreases),
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),
125
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As \_\_↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),
126
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the au\_\_\_\_’s acceptable level of 
    DR↓ (decreases),
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),
127
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable le\_\_\_ of 
    DR↓ (decreases),
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),
128
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (de\_\_\_\_\_\_\_\_s),
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),
129
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    D_↓ (decreases),
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),
130
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    \_\_↓ (decreases),
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),
131
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s ac\_\_\_\_\_\_\_\_e level of 
    DR↓ (decreases),
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),
132
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),

    which means the au\_\_\_\_\_ will perform 
    MORE ↑ Substantive Testing.
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),

    which means the auditor will perform 
    MORE ↑ Substantive Testing.
133
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),

    which means the auditor will per\_\_\_\_
    MORE ↑ Substantive Testing.
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),

    which means the auditor will perform 
    MORE ↑ Substantive Testing.
134
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),

    which means the auditor will perform 
    MORE ↑ Substantive T\_\_\_ing.
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),

    which means the auditor will perform 
    MORE ↑ Substantive Testing.
135
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),

    which means the auditor will perform 
    MORE ↑ Su\_\_\_\_\_\_\_\_\_e Testing.
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),

    which means the auditor will perform 
    MORE ↑ Substantive Testing.
136
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),

    which means the auditor will perform 
    M\_\_\_\_ ↑ Substantive Testing.
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),

    which means the auditor will perform 
    MORE ↑ Substantive Testing.
137
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Re_____ reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),

    which means the auditor will perform 
    MORE ↑ Substantive Testing.
A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):

Examples of controls:

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 
    the auditor’s acceptable level of 
    DR↓ (decreases),

    which means the auditor will perform 
    MORE ↑ Substantive Testing.
138
Q

Investing and Financing Cycle
Internal Controls

Co____ Risk Assessment (CR):
Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):
Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

139
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • M______ing of inv_______ activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

140
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and re____ing by independent control st__f;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

141
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management ap______ of tra_______s;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

142
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate ri__ mea________ systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

143
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • A_______ risk measurement sy____s for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

144
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for inv_______s and de_______s;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

145
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control ac______ ba_____s;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

146
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Re______ reco________s to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

147
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and re______ re____s of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

148
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of li___s and con______s on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

149
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • De______s and regular re____s of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

150
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on inv_______ a_______s; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

151
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Re_____ rev____s of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

152
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular re_____s of con____s by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

153
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some inde______ b__y.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

154
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acc______ le__l of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

155
Q

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Sub_______ T___ing.

A

Investing and Financing Cycle
Internal Controls

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

156
Q

• Regular re____s of controls by senior management or some independent body.

 o As Control Risk ↑ (increases) 

    the auditor’s acceptable level of 
    Detection Risk↓ (decreases), 

    which means the auditor will perform 
    MORE ↑ Substantive Testing.
A

• Regular reviews of controls by senior management or some independent body.

 o As Control Risk ↑ (increases) 

    the auditor’s acceptable level of 
    Detection Risk↓ (decreases), 

    which means the auditor will perform 
    MORE ↑ Substantive Testing.
157
Q

• Regular reviews of con____s by senior management or some independent body.

 o As Control Risk (CR) ↑ (increases) 
        the auditor’s acceptable level of 
        Detection Risk (DR) ↓ (decreases), 
    which means the auditor will perform 
    MORE ↑ Substantive Testing.
A

• Regular reviews of controls by senior management or some independent body.

 o As Control Risk (CR) ↑ (increases) 
        the auditor’s acceptable level of 
        Detection Risk (DR) ↓ (decreases), 
    which means the auditor will perform 
    MORE ↑ Substantive Testing.
158
Q

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 

    the auditor’s acc\_\_\_\_\_\_ level of 
    DR↓ (decreases), 

    which means the auditor will perform 
    MORE ↑ Substantive Testing.
A

• Regular reviews of controls by senior management or some independent body.

 o As CR↑ (increases) 

    the auditor’s acceptable level of 
    DR↓ (decreases), 

    which means the auditor will perform 
    MORE ↑ Substantive Testing.
159
Q

o As CR↑ (increases)

    the auditor’s acceptable level of 
    DR↓ (decreases), 

    which means the auditor will perform 
    MORE ↑ Su\_\_\_\_\_\_\_\_\_ Testing.
A

o As CR↑ (increases)

    the auditor’s acceptable level of 
    DR↓ (decreases), 

    which means the auditor will perform 
    MORE ↑ Substantive Testing.
160
Q

o As C_↑ (increases)

    DR↓ (decreases)

    MORE ↑ Substantive Testing
A

o As CR↑ (increases)

    DR↓ (decreases)

    MORE ↑ Substantive Testing
161
Q

o As __↑ (increases)

    DR↓ (decreases)

    MORE ↑ Substantive Testing
A

o As CR↑ (increases)

    DR↓ (decreases)

    MORE ↑ Substantive Testing
162
Q

o As CR↑ (increases)

    D_↓ (decreases)

    MORE ↑ Substantive Testing
A

o As CR↑ (increases)

    DR↓ (decreases)

    MORE ↑ Substantive Testing
163
Q

o As CR↑ (increases)

    \_\_↓ (decreases)

    MORE ↑ Substantive Testing
A

o As CR↑ (increases)

    DR↓ (decreases)

    MORE ↑ Substantive Testing
164
Q

o As CR↑ (increases)

    DR↓ (decreases)

    MORE ↑ Substantive T\_\_\_ing
A

o As CR↑ (increases)

    DR↓ (decreases)

    MORE ↑ Substantive Testing
165
Q

o As CR↑ (increases)

    DR↓ (decreases)

    M\_\_\_ ↑ Substantive Testing
A

o As CR↑ (increases)

    DR↓ (decreases)

    MORE ↑ Substantive Testing
166
Q

o As __↑ (increases)

    \_\_↓ (decreases)

    MORE ↑ Substantive Testing
A

o As CR↑ (increases)

    DR↓ (decreases)

    MORE ↑ Substantive Testing
167
Q

o As CR↑ (increases)

    DR↓ (decreases)

    MORE ↑ S\_\_\_\_\_\_\_\_ T\_\_ting
A

o As CR↑ (increases)

    DR↓ (decreases)

    MORE ↑ Substantive Testing
168
Q

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):
Id____fy specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

A

Investing and Financing Cycle
Internal Controls

Control Risk Assessment (CR):
Identify specific controls applicable to assertions and gather evidential matter regarding their operating effectiveness (tests of controls).

Examples of controls include:

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and

• Regular reviews of controls by senior management or some independent body.
o As CR↑ (increases)
the auditor’s acceptable level of
DR↓ (decreases),
which means the auditor will perform
MORE ↑ Substantive Testing.

169
Q

How to reduce risk of material misstatement?

__________________ reduce _______________ ,
such that risk of material misstatement can be reduced.

A

How to reduce risk of material misstatement?

Answer: Reduce control risk (CR)

              RMM  =        IR    x       CR

reduced RMM = high IR x reduced CR

Internal controls reduce control risk,
such that risk of material misstatement can be reduced.

170
Q

What does reduce control risk?

_________________ reduce control risk
such that, regardless of a high inherent risk,
risk of material misstatement can be reduced.

A

What does reduce control risk?

Internal controls reduce control risk
such that, regardless of a high inherent risk,
risk of material misstatement can be reduced.

171
Q

What does reduce control risk?

A

What does reduce control risk?

Internal controls reduce control risk
such that, regardless of a high inherent risk,
risk of material misstatement can be reduced.

172
Q

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

A

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

Answer:

When internal controls in relation to investments are expected to reduce control risk below the maximum,

reducing the risk of material misstatement,

specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

173
Q

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

When internal controls in relation to investments are expected to reduce _____________ below the maximum,

A

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

Answer:

When internal controls in relation to investments are expected to reduce control risk below the maximum,

reducing the risk of material misstatement,

specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

174
Q

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

When internal controls in relation to investments are expected to reduce control risk below _______________,

A

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

Answer:

When internal controls in relation to investments are expected to reduce control risk below the maximum,

reducing the risk of material misstatement,

specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

175
Q

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

When internal controls in relation to investments are expected to _______ control risk below the maximum,

A

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

Answer:

When internal controls in relation to investments are expected to reduce control risk below the maximum,

reducing the risk of material misstatement,

specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

176
Q

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

When internal controls in _________ to investments are expected to reduce control risk below the maximum,

A

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

Answer:

When internal controls in relation to investments are expected to reduce control risk below the maximum,

reducing the risk of material misstatement,

specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

177
Q

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

When internal controls in relation to __________ are expected to reduce control risk below the maximum,

A

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

Answer:

When internal controls in relation to investments are expected to reduce control risk below the maximum,

reducing the risk of material misstatement,

specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

178
Q

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

When internal controls in relation to investments are ___________ to reduce control risk below the maximum,

A

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

Answer:

When internal controls in relation to investments are expected to reduce control risk below the maximum,

reducing the risk of material misstatement,

specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

179
Q

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

When internal controls in relation to investments are expected to reduce _____________________________,

A

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

Answer:

When internal controls in relation to investments are expected to reduce control risk below the maximum,

reducing the risk of material misstatement,

specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

180
Q

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

When ________________ in relation to ___________ are expected to reduce control risk below the maximum,

A

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

Answer:

When internal controls in relation to investments are expected to reduce control risk below the maximum,

reducing the risk of material misstatement,

specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

181
Q

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

A

When will tests of controls be performed to gather evidential matter regarding their operating effectiveness?

Answer:

When internal controls in relation to investments are expected to reduce control risk below the maximum,

reducing the risk of material misstatement,

specific controls are associated with management assertions and tests of controls are performed to gather evidential matter regarding their operating effectiveness.

182
Q

What is Control Risk Assessment (CR)?

A

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

183
Q

What is Control Risk Assessment (CR)?

Identify specific _________ applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

A

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

184
Q

What is Control Risk Assessment (CR)?

_________ specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

A

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

185
Q

What is Control Risk Assessment (CR)?

Identify specific controls applicable to __________
and gather evidential matter regarding their operating effectiveness (tests of controls).

A

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

186
Q

What is Control Risk Assessment (CR)?

Identify specific controls ___________ to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

A

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

187
Q

What is Control Risk Assessment (CR)?

Identify _________________ applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

A

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

188
Q

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather ___________ matter regarding their operating effectiveness (tests of controls).

A

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

189
Q

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their _________ effectiveness (tests of controls).

A

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

190
Q

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating _____________ (tests of controls).

A

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

191
Q

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of _________).

A

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

192
Q

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (___________________).

A

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

193
Q

What is Control Risk Assessment (CR)?

Identify specific controls ____________ to ___________
and gather evidential matter regarding their operating effectiveness (tests of controls).

A

What is Control Risk Assessment (CR)?

Identify specific controls applicable to assertions
and gather evidential matter regarding their operating effectiveness (tests of controls).

194
Q

What are examples of controls?

A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
195
Q

What are examples of controls?

• ____________ of investment activities and reporting by independent control staff;

A

What are examples of controls?

• Monitoring of investment activities and reporting by independent control staff

196
Q

What are examples of controls?

• Monitoring of ___________ activities and reporting by independent control staff;

A

What are examples of controls?

• Monitoring of investment activities and reporting by independent control staff;

197
Q

What are examples of controls?

• Monitoring of investment __________ and reporting by independent control staff;

A

What are examples of controls?

• Monitoring of investment activities and reporting by independent control staff;

198
Q

What are examples of controls?

• Monitoring of investment activities and ___________ by independent control staff;

A

What are examples of controls?

• Monitoring of investment activities and reporting by independent control staff;

199
Q

What are examples of controls?

• Monitoring of investment activities and reporting by ___________ control staff;

A

What are examples of controls?

• Monitoring of investment activities and reporting by independent control staff;

200
Q

What are examples of controls?

• Monitoring of investment activities and reporting by independent _______ staff;

A

What are examples of controls?

• Monitoring of investment activities and reporting by independent control staff;

201
Q

What are examples of controls?

• Monitoring of investment activities and reporting by independent control ______;

A

What are examples of controls?

• Monitoring of investment activities and reporting by independent control staff;

202
Q

What are examples of controls?

• _____________ of investment _________ and reporting by independent control staff;

A

What are examples of controls?

• Monitoring of investment activities and reporting by independent control staff;

203
Q

What are examples of controls?

• Monitoring of investment activities and ____________ by independent control _____;

A

What are examples of controls?

• Monitoring of investment activities and reporting by independent control staff;

204
Q

What are examples of controls?

• Monitoring of investment activities and reporting by ___________ control _____;

A

What are examples of controls?

• Monitoring of investment activities and reporting by independent control staff;

205
Q

What are examples of controls?

• ____________ of investment activities and ___________ by independent control staff;

A

What are examples of controls?

• Monitoring of investment activities and reporting by independent control staff;

206
Q

What are examples of controls?

• Senior management approval of transactions

A

What are examples of controls?

  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
207
Q

What are examples of controls?

• Senior ___________ approval of transactions

A

What are examples of controls?

• Senior management approval of transactions;

208
Q

What are examples of controls?

• _______ management approval of transactions

A

What are examples of controls?

• Senior management approval of transactions

209
Q

What are examples of controls?

• Senior management approval of ___________

A

What are examples of controls?

• Senior management approval of transactions

210
Q

What are examples of controls?

• Senior management _________ of transactions

A

What are examples of controls?

• Senior management approval of transactions

211
Q

What are examples of controls?

• _______ management _________ of transactions

A

What are examples of controls?

• Senior management approval of transactions

212
Q

What are examples of controls?

• Senior management _________ of ___________

A

What are examples of controls?

• Senior management approval of transactions

213
Q

What are examples of controls?

• Senior ______________ ___________ of transactions

A

What are examples of controls?

• Senior management approval of transactions

214
Q

What are examples of controls?

• Accurate risk measurement ________ for investments and derivatives

A

What are examples of controls?

• Accurate risk measurement systems for investments and derivatives

215
Q

What are examples of controls?

• Accurate risk _____________ systems for investments and derivatives

A

What are examples of controls?

• Accurate risk measurement systems for investments and derivatives

216
Q

What are examples of controls?

• Accurate ____ measurement systems for investments and derivatives

A

What are examples of controls?

• Accurate risk measurement systems for investments and derivatives

217
Q

What are examples of controls?

• Accurate risk measurement systems for _____________ and derivatives

A

What are examples of controls?

• Accurate risk measurement systems for investments and derivatives

218
Q

What are examples of controls?

• ________ risk measurement systems for investments and derivatives

A

What are examples of controls?

• Accurate risk measurement systems for investments and derivatives

219
Q

What are examples of controls?

• Accurate risk measurement systems for investments and ___________

A

What are examples of controls?

• Accurate risk measurement systems for investments and derivatives

220
Q

What are examples of controls?

• Accurate _____ measurement ________ for investments and derivatives

A

What are examples of controls?

• Accurate risk measurement systems for investments and derivatives

221
Q

What are examples of controls?

• Accurate risk measurement systems for ___________ and ___________

A

What are examples of controls?

• Accurate risk measurement systems for investments and derivatives

222
Q

What are examples of controls?

• __________ risk measurement __________ for investments and derivatives

A

What are examples of controls?

• Accurate risk measurement systems for investments and derivatives

223
Q

What are examples of controls?

• Regular reconciliations to control account _________

A

What are examples of controls?

• Regular reconciliations to control account balances

224
Q

What are examples of controls?

• Regular reconciliations to control _______ balances

A

What are examples of controls?

• Regular reconciliations to control account balances

225
Q

What are examples of controls?

• Regular reconciliations to _______ account balances

A

What are examples of controls?

• Regular reconciliations to control account balances

226
Q

What are examples of controls?

• Regular _____________ to control account balances

A

What are examples of controls?

• Regular reconciliations to control account balances

227
Q

What are examples of controls?

• Regular reconciliations to control account balances

A

What are examples of controls?

• Regular reconciliations to control account balances

228
Q

What are examples of controls?

• Regular ____________ to control ________ balances

A

What are examples of controls?

• Regular reconciliations to control account balances

229
Q

What are examples of controls?

• Definitions and regular _______ of limits and constraints on investment activities

A

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment activities

230
Q

What are examples of controls?

• Definitions and regular reviews of ______ and constraints on investment activities

A

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment activities

231
Q

What are examples of controls?

• Definitions and regular reviews of limits and ___________ on investment activities

A

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment activities

232
Q

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment __________

A

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment activities

233
Q

What are examples of controls?

• Definitions and regular reviews of limits and constraints on ____________ activities

A

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment activities

234
Q

What are examples of controls?

• ___________ and regular reviews of limits and constraints on investment activities

A

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment activities

235
Q

What are examples of controls?

• Definitions and ________ reviews of limits and constraints on investment activities

A

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment activities

236
Q

What are examples of controls?

• Definitions and regular reviews of ______ and ___________ on investment activities

A

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment activities

237
Q

What are examples of controls?

• Definitions and regular reviews of limits and ___________ on __________ activities

A

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment activities

238
Q

What are examples of controls?

• __________ and regular ________ of limits and constraints on investment activities

A

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment activities

239
Q

What are examples of controls?

• Definitions and regular reviews of ______ and constraints on ___________ activities

A

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment activities

240
Q

What are examples of controls?

• Definitions and regular _______ of limits and constraints on investment _________

A

What are examples of controls?

• Definitions and regular reviews of limits and constraints on investment activities

241
Q

What are examples of controls?

• Regular reviews of _______ by senior management or some independent body.

A

What are examples of controls?

• Regular reviews of controls by senior management or some independent body.

242
Q

What are examples of controls?

• Regular reviews of controls by senior _____________ or some independent body.

A

What are examples of controls?

• Regular reviews of controls by senior management or some independent body.

243
Q

What are examples of controls?

• Regular ________ of controls by senior management or some independent body.

A

What are examples of controls?

• Regular reviews of controls by senior management or some independent body.

244
Q

What are examples of controls?

• ________ reviews of controls by senior management or some independent body.

A

What are examples of controls?

• Regular reviews of controls by senior management or some independent body.

245
Q

What are examples of controls?

• Regular ________ of ________ by senior management or some independent body.

A

What are examples of controls?

• Regular reviews of controls by senior management or some independent body.

246
Q

What are examples of controls?

• Regular reviews of controls by senior management or some ____________ body.

A

What are examples of controls?

• Regular reviews of controls by senior management or some independent body.

247
Q

What are examples of controls?

• Regular reviews of controls by _____ management or some independent _____ .

A

What are examples of controls?

• Regular reviews of controls by senior management or some independent body.

248
Q

What are examples of controls?

• _______ ________ of controls by senior management or some independent body.

A

What are examples of controls?

• Regular reviews of controls by senior management or some independent body.

249
Q

What are examples of controls?

  • ___________ of investment activities and ________ by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
250
Q

What are examples of controls?

  • Monitoring of ___________ ___________ and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
251
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management _________ of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
252
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior __________ approval of __________;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
253
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement ______ for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
254
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for __________ and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
255
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and __________;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
256
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • ___________ risk measurement ________ for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
257
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular __________ to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
258
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • __________ and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
259
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular ________ of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
260
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment _________; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
261
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and _________ on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
262
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular ______ of controls by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
263
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of _______ by senior management or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
264
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some __________ body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
265
Q

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior ____________ or some independent body.
A

What are examples of controls?

  • Monitoring of investment activities and reporting by independent control staff;
  • Senior management approval of transactions;
  • Accurate risk measurement systems for investments and derivatives;
  • Regular reconciliations to control account balances;
  • Definitions and regular reviews of limits and constraints on investment activities; and
  • Regular reviews of controls by senior management or some independent body.
266
Q

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

  • Presentation and Disclosure
  • Existence
  • Rights and Obligations
  • Completeness
  • Valuation
A

Investing and Financing Cycle
Internal Controls

Substantive Procedures

Since derivatives are required to be reported at fair value, the auditor is required to evaluate whether the fair values of investments in derivatives have been determined appropriately, using an acceptable valuation method.

Substantive procedures in the area of investments in Derivatives should be designed to test management’s assertions with regard to (PERCV):

  • Presentation and Disclosure
  • Existence
  • Rights and Obligations
  • Completeness
  • Valuation

CPA AUD Flashcards (62 decks)

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