AUD 3 Internal Control 4 Flashcards

Question 1

Q

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 1st Category ————-

The first 5 assertions relate to Events and Transactions that occurred during the period of audit, as generally presented on an entity’s income statement (CPA-CO).

Completeness
Period Cutoff
Accuracy
Classification
Occurrence

If all revenue and expenses are properly reported, the CPA-CO will have no problem preparing your taxes.

———– 2nd Category ————-

The next 4 assertions relate to Account Balances, amounts reported as of the date of the financial statements, as generally presented on the balance sheet (RACE).

Rights and Obligations
Allocation and Valuation
Completeness
Existence

If an entity has a healthy balance sheet, it is running at good RACE.

———– 3rd Category ————-

The final 5 assertions relate to the Presentation of the financial statements and the financial statement Disclosures (RACOU–n (Raccoon).

Rights and Obligations
Accuracy and Valuation
Completeness
Occurrence
Understandability and Classification

Raccoons (RACOU-n’s) are always presenting and disclosing my garbage at night!!

Answer

A

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 1st Category ————-

The first 5 assertions relate to Events and Transactions that occurred during the period of audit, as generally presented on an entity’s income statement (CPA-CO).

Completeness
Period Cutoff
Accuracy
Classification
Occurrence

If all revenue and expenses are properly reported, the CPA-CO will have no problem preparing your taxes.

———– 2nd Category ————-

The next 4 assertions relate to Account Balances, amounts reported as of the date of the financial statements, as generally presented on the balance sheet (RACE).

Rights and Obligations
Allocation and Valuation
Completeness
Existence

If an entity has a healthy balance sheet, it is running at good RACE.

———– 3rd Category ————-

The final 5 assertions relate to the Presentation of the financial statements and the financial statement Disclosures (RACOU–n (Raccoon).

Rights and Obligations
Accuracy and Valuation
Completeness
Occurrence
Understandability and Classification

Raccoons (RACOU-n’s) are always presenting and disclosing my garbage at night!!

Question 2

Q

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 1st Category ————-

The first 5 assertions
presented on income statement

CPA-CO

———– 2nd Category ————-

The next 4 assertions
presented on the balance sheet

RACE

———– 3rd Category ————-

The final 5 assertions
Presentation of the financial statements
and the financial statement Disclosures

RACOU–n (Raccoon)

Answer

A

Internal Control

———– 1st Category ————-

The first 5 assertions
presented on income statement

CPA-CO

———– 2nd Category ————-

The next 4 assertions
presented on the balance sheet

RACE

———– 3rd Category ————-

The final 5 assertions
Presentation of the financial statements
and the financial statement Disclosures

RACOU–n (Raccoon)

Question 3

Q

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 1st Category ————-

The first 5 assertions
presented on in____ statement

CPA-CO

Completeness
Period Cutoff
Accuracy
Classification
Occurrence

Answer

A

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 1st Category ————-

The first 5 assertions
presented on income statement

CPA-CO

Completeness
Period Cutoff
Accuracy
Classification
Occurrence

Question 4

Q

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 1st Category ————-

The first 5 assertions
presented on income statement

CPA-CO

C___________
P_____ C_____
A________
C__________
O__________

Answer

A

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 1st Category ————-

The first 5 assertions
presented on income statement

CPA-CO

Completeness
Period Cutoff
Accuracy
Classification
Occurrence

Question 5

Q

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 2nd Category ————-

The next 4 assertions
presented on the ba____e sheet

RACE

Rights and Obligations
Allocation and Valuation
Completeness
Existence

Answer

A

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 2nd Category ————-

The next 4 assertions
presented on the balance sheet

RACE

Rights and Obligations
Allocation and Valuation
Completeness
Existence

Question 6

Q

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 2nd Category ————-

The next 4 assertions
presented on the balance sheet

RACE

R______ and O_________
A________ and V_________
C___________
E__________

Answer

A

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 2nd Category ————-

The next 4 assertions
presented on the balance sheet

RACE

Rights and Obligations
Allocation and Valuation
Completeness
Existence

Question 7

Q

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 3rd Category ————-

The final 5 assertions
Presentation of the financial statements
and the financial statement Dis_____es

RACOU–n (Raccoon)

Rights and Obligations
Accuracy and Valuation
Completeness
Occurrence
Understandability and Classification

Answer

A

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 3rd Category ————-

The final 5 assertions
Presentation of the financial statements
and the financial statement Disclosures

RACOU–n (Raccoon)

Rights and Obligations
Accuracy and Valuation
Completeness
Occurrence
Understandability and Classification

Question 8

Q

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 3rd Category ————-

The final 5 assertions
Presentation of the financial statements
and the financial statement Disclosures

RACOU–n (Raccoon)

R______ and O_________
A_______ and V________
C___________
O________
U___________ and C___________

Answer

A

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 3rd Category ————-

The final 5 assertions
Presentation of the financial statements
and the financial statement Disclosures

RACOU–n (Raccoon)

Rights and Obligations
Accuracy and Valuation
Completeness
Occurrence
Understandability and Classification

Question 9

Q

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 1st Category ————-

The first 5 assertions
presented on income statement

CPA-CO

Completeness
Period Cutoff
Accuracy
Classification
Occurrence

———– 2nd Category ————-

The next 4 assertions
presented on the balance sheet

RACE

Rights and Obligations
Allocation and Valuation
Completeness
Existence

———– 3rd Category ————-

The final 5 assertions
Presentation of the financial statements
and the financial statement Disclosures

RACOU–n (Raccoon)

Rights and Obligations
Accuracy and Valuation
Completeness
Occurrence
Understandability and Classification

Answer

A

Internal Control

There are several assertions, some of which overlap one another, classified into 3 categories.

———– 1st Category ————-

The first 5 assertions
presented on income statement

CPA-CO

Completeness
Period Cutoff
Accuracy
Classification
Occurrence

———– 2nd Category ————-

The next 4 assertions
presented on the balance sheet

RACE

Rights and Obligations
Allocation and Valuation
Completeness
Existence

———– 3rd Category ————-

The final 5 assertions
Presentation of the financial statements
and the financial statement Disclosures

RACOU–n (Raccoon)

Rights and Obligations
Accuracy and Valuation
Completeness
Occurrence
Understandability and Classification

Question 10

Q

Internal Control

The a______ is looking for the presence of useful controls: the strengths in the system.

Answer

A

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

Question 11

Q

Internal Control

The auditor is looking for the presence of use___ controls: the strengths in the system.

Answer

A

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

Question 12

Q

Internal Control

The auditor is looking for the presence of useful controls: the str______s in the system.

Answer

A

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

Question 13

Q

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the sys___.

Answer

A

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

Question 14

Q

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by m___________t that relate to the financial statement assertions and which are meant to produce accurate financial records and safeguarding of assets.

Answer

A

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by management that relate to the financial statement assertions and which are meant to produce accurate financial records and safeguarding of assets.

Question 15

Q

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by management that relate to the financial statement ass_______s and which are meant to produce accurate financial records and safeguarding of assets.

Answer

A

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by management that relate to the financial statement assertions and which are meant to produce accurate financial records and safeguarding of assets.

Question 16

Q

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by management that relate to the financial statement assertions and which are meant to produce acc_____ financial records and safeguarding of assets.

Answer

A

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by management that relate to the financial statement assertions and which are meant to produce accurate financial records and safeguarding of assets.

Question 17

Q

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by management that relate to the financial statement assertions and which are meant to produce accurate financial re_____s and safeguarding of assets.

Answer

A

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by management that relate to the financial statement assertions and which are meant to produce accurate financial records and safeguarding of assets.

Question 18

Q

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by management that relate to the financial statement assertions and which are meant to produce accurate financial records and safe_____ing of assets.

Answer

A

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by management that relate to the financial statement assertions and which are meant to produce accurate financial records and safeguarding of assets.

Question 19

Q

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by management that relate to the financial statement assertions and which are meant to produce accurate financial records and safeguarding of as____s.

Answer

A

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by management that relate to the financial statement assertions and which are meant to produce accurate financial records and safeguarding of assets.

Question 20

Q

Internal Control

Those controls designed to enable adherence to laws and regulations and promote efficiency in the organization are usually not relevant to the financial statement ass_______s.

Answer

A

Internal Control

Those controls designed to enable adherence to laws and regulations and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Question 21

Q

Internal Control

Those c_______s designed to enable adherence to laws and regulations and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Answer

A

Internal Control

Those controls designed to enable adherence to laws and regulations and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Question 22

Q

Internal Control

Those controls designed to enable adherence to l__s and regulations and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Answer

A

Internal Control

Those controls designed to enable adherence to laws and regulations and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Question 23

Q

Internal Control

Those controls designed to enable adherence to laws and regulations and promote eff_______y in the organization are usually not relevant to the financial statement assertions.

Answer

A

Internal Control

Those controls designed to enable adherence to laws and regulations and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Question 24

Q

Internal Control

Those controls designed to enable adherence to laws and regulations and promote efficiency in the organization are usually not relevant to the f_______ statement assertions.

Answer

A

Internal Control

Those controls designed to enable adherence to laws and regulations and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Question 25

Q

Internal Control

Those controls designed to enable adherence to laws and reg________s and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Answer

A

Internal Control

Those controls designed to enable adherence to laws and regulations and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Question 26

Q

Internal Control

Those controls designed to enable adh______e to laws and regulations and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Answer

A

Internal Control

Those controls designed to enable adherence to laws and regulations and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Question 27

Q

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is pr______ly formed by those controls designed by management that relate to the financial statement assertions and which are meant to produce accurate financial records and safeguarding of assets.

Those controls designed to enable adherence to laws and regulations and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Answer

A

Internal Control

The auditor is looking for the presence of useful controls: the strengths in the system.

The system is primarily formed by those controls designed by management that relate to the financial statement assertions and which are meant to produce accurate financial records and safeguarding of assets.

Those controls designed to enable adherence to laws and regulations and promote efficiency in the organization are usually not relevant to the financial statement assertions.

Question 28

Q

Internal Control

To ensure that only sales that actually occ___ed are recorded in the sales journal,

the occurrence assertion,

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

Question 29

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the s___s journal,

the occurrence assertion,

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

Question 30

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales jou____,

the occurrence assertion,

the entity may establish a co______ requiring that
sales be recorded in the sales journal
only when there is ……….

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is …………

Question 31

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
s___s be recorded in the sales journal
only when there is ……….

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is ………..

Question 32

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be re____ed in the sales journal
only when there is ………..

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is ………….

Question 33

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales jo____l
only when there is ……….

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form, 
a sales order form, 
a shipping report, 
and an invoice, 
all of which agree as to the goods that were sold 
and the price to be received for them.

Question 34

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer or___ form,
a sales or___ form,

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form, 
a sales order form, 
a shipping report, 
and an invoice, 
all of which agree as to the goods that were sold 
and the price to be received for them.

Question 35

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a cus_____ order form,
a sales order form,
a shipping report,
and an invoice,

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be received for them.

Question 36

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a s___s order form,
a shipping report,
and an invoice,

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be received for them.

Question 37

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a sh___ing report,
and an invoice,

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be received for them.

Question 38

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping re___t,
and an invoice,

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be received for them.

Question 39

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an in_____,

all of which agree as to the goods that were sold
and the price to be received for them.

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be received for them.

Question 40

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which ag___ as to the goods that were sold
and the price to be received for them.

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be received for them.

Question 41

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the go__s that were sold
and the price to be received for them.

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be received for them.

Question 42

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the pr___ to be received for them.

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be received for them.

Question 43

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be rec___ed for them.

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be received for them.

Question 44

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

a__ of which agree as to the goods that were sold
and the price to be received for them.

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be received for them.

Question 45

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence ass___ion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be received for them.

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal,

the occurrence assertion,

the entity may establish a control requiring that
sales be recorded in the sales journal
only when there is

a customer order form,
a sales order form,
a shipping report,
and an invoice,

all of which agree as to the goods that were sold
and the price to be received for them.

Question 46

Q

Internal Control

To ensure that only sales that actually occ___ed are recorded in the sales journal, the occurrence assertion,

the entity may establish a control requiring that sales be recorded in the sales journal

only when there is a customer order form, a sales order form, a shipping report, and an invoice,

all of which agree as to the goods that were sold and the price to be received for them.

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal, the occurrence assertion,

the entity may establish a control requiring that sales be recorded in the sales journal

only when there is a customer order form, a sales order form, a shipping report, and an invoice,

all of which agree as to the goods that were sold and the price to be received for them.

Question 47

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal, the occ___ence assertion,

the entity may establish a control requiring that sales be recorded in the sales journal

only when there is a customer order form, a sales order form, a shipping report, and an invoice,

all of which agree as to the goods that were sold and the price to be received for them.

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal, the occurrence assertion,

the entity may establish a control requiring that sales be recorded in the sales journal

only when there is a customer order form, a sales order form, a shipping report, and an invoice,

all of which agree as to the goods that were sold and the price to be received for them.

Question 48

Q

Internal Control

To ensure that only sales that actually occurred are re____ed in the sales journal, the occurrence assertion, the entity may establish a control requiring that sales be recorded in the sales journal only when there is a customer order form, a sales order form, a shipping report, and an invoice, all of which agree as to the goods that were sold and the price to be received for them.

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal, the occurrence assertion, the entity may establish a control requiring that sales be recorded in the sales journal only when there is a customer order form, a sales order form, a shipping report, and an invoice, all of which agree as to the goods that were sold and the price to be received for them.

Question 49

Q

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness ass____ion,

Answer

A

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

Question 50

Q

Internal Control

To ensure that all s___s that actually occur are recorded,

the completeness assertion,

Answer

A

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion, .

Question 51

Q

Internal Control

To ensure that all sales that actually occur are re____ed,

the completeness assertion,

Answer

A

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of prenumbered sales order forms
and account for all forms,
including making certain that none are out of sequence.

Question 52

Q

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the en___y may require the use of prenumbered sales order forms

Answer

A

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of prenumbered sales order forms

Question 53

Q

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of pre______ed sales order forms

Answer

A

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of prenumbered sales order forms

Question 54

Q

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of prenumbered s___s order forms
and account for all forms,
including making certain that none are out of sequence.

Answer

A

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of prenumbered sales order forms
and account for all forms,
including making certain that none are out of sequence.

Question 55

Q

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of prenumbered sales order forms
and account for a__ forms,
including making certain that none are out of sequence.

Answer

A

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of prenumbered sales order forms
and account for all forms,
including making certain that none are out of sequence.

Question 56

Q

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of prenumbered sales or___ forms

Answer

A

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of prenumbered sales order forms

Question 57

Q

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of prenumbered sales order forms
and account for all forms,
including making certain that none are out of seq_____e.

Answer

A

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of prenumbered sales order forms
and account for all forms,
including making certain that none are out of sequence.

Question 58

Q

Internal Control

To ensure that all sales that actually occur are recorded,

the com_____ness assertion,

the entity may require the use of prenumbered sales order forms
and account for all forms,
including making certain that none are out of sequence.

Answer

A

Internal Control

To ensure that all sales that actually occur are recorded,

the completeness assertion,

the entity may require the use of prenumbered sales order forms
and account for all forms,
including making certain that none are out of sequence.

Question 59

Q

Internal Control

To ensure that all sales that ac______y occur are recorded, the completeness assertion,

the entity may require the use of prenumbered sales order forms and account for all forms, including making certain that none are out of sequence.

Answer

A

Internal Control

To ensure that all sales that actually occur are recorded, the completeness assertion,

the entity may require the use of prenumbered sales order forms and account for all forms, including making certain that none are out of sequence.

Question 60

Q

Internal Control

To ensure that all sales that actually occur are recorded, the completeness assertion,

the entity may require the use of pre_____red sales order forms and account for all forms, including making certain that none are out of sequence.

Answer

A

Internal Control

To ensure that all sales that actually occur are recorded, the completeness assertion,

the entity may require the use of prenumbered sales order forms and account for all forms, including making certain that none are out of sequence.

Question 61

Q

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal, the occur___ce assertion, the entity may establish a control requiring that sales be recorded in the sales journal only when there is a customer order form, a sales order form, a shipping report, and an invoice, all of which agree as to the goods that were sold and the price to be received for them.

To ensure that all sales that actually occur are recorded, the comp_____ess assertion, the entity may require the use of prenumbered sales order forms and account for all forms, including making certain that none are out of sequence.

Answer

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal, the occurrence assertion, the entity may establish a control requiring that sales be recorded in the sales journal only when there is a customer order form, a sales order form, a shipping report, and an invoice, all of which agree as to the goods that were sold and the price to be received for them.

To ensure that all sales that actually occur are recorded, the completeness assertion, the entity may require the use of prenumbered sales order forms and account for all forms, including making certain that none are out of sequence.

Question 62

Q

Internal Control

Only s___s that actually Occurred are Recorded in the sales journal

= Occurrence Assertion

Answer

A

Internal Control

Only sales that actually Occurred are Recorded in the sales journal

= Occurrence Assertion

Question 63

Q

Internal Control

Only sales that actually Occurred are Recorded in the s___s journal

= Occurrence Assertion

Answer

A

Internal Control

Only sales that actually Occurred are Recorded in the sales journal

= Occurrence Assertion

Question 64

Q

Internal Control

Only sales that actually O______ed are Recorded in the sales journal

= Occurrence Assertion

Answer

A

Internal Control

Only sales that actually Occurred are Recorded in the sales journal

= Occurrence Assertion

Answer 65

A

Internal Control

Only sales that actually Occurred are Recorded in the sales journal

= Occurrence Assertion

Answer 66

A

Internal Control

Only sales that actually Occurred are Recorded in the sales journal

= Occurrence Assertion

Answer 67

A

Internal Control

Only sales that actually Occurred are Recorded in the sales journal

= Occurrence Assertion

Answer 68

A

Internal Control

Only sales that actually Occurred are Recorded in the sales journal

= Occurrence Assertion

Answer 69

A

Internal Control

Only sales that actually Occurred are Recorded in the sales journal

= Occurrence Assertion

Answer 70

A

Internal Control

Occurrence Assertion

To ensure that only sales that actually occurred are recorded in the sales journal

example of control

recorded in the sales journal only when there is

a customer order form,
a sales order form,
a shipping report, and
an invoice,

Answer 71

A

Internal Control

Occurrence Assertion

To ensure that only sales that actually occurred are recorded in the sales journal

example of control

recorded in the sales journal only when there is

a customer order form,
a sales order form,
a shipping report, and
an invoice,

Answer 72

A

Internal Control

Occurrence Assertion

To ensure that only sales that actually occurred are recorded in the sales journal

example of control

recorded in the sales journal only when there is

a customer order form,
a sales order form,
a shipping report, and
an invoice,

Answer 73

A

Internal Control

Occurrence Assertion

To ensure that only sales that actually occurred are recorded in the sales journal

example of control

recorded in the sales journal only when there is

a customer order form,
a sales order form,
a shipping report, and
an invoice,

Answer 74

A

Internal Control

Occurrence Assertion

To ensure that only sales that actually occurred are recorded in the sales journal

example of control

recorded in the sales journal only when there is

a customer order form,
a sales order form,
a shipping report, and
an invoice,

Answer 75

A

Internal Control

Occurrence Assertion

To ensure that only sales that actually occurred are recorded in the sales journal

example of control

recorded in the sales journal only when there is

a customer order form,
a sales order form,
a shipping report, and
an invoice,

Answer 76

A

Internal Control

Occurrence Assertion

To ensure that only sales that actually occurred are recorded in the sales journal

example of control

recorded in the sales journal only when there is

a customer order form,
a sales order form,
a shipping report, and
an invoice,

Answer 77

A

Internal Control

All sales that actually occur are Recorded

= Completeness Assertion

Answer 78

A

Internal Control

All sales that actually occur are Recorded

= Completeness Assertion

Answer 79

A

Internal Control

All sales that actually occur are Recorded

= Completeness Assertion

Answer 80

A

Internal Control

All sales that actually occur are Recorded

= Completeness Assertion

Answer 81

A

Internal Control

All sales that actually occur are Recorded

= Completeness Assertion

Answer 82

A

Internal Control

All sales that actually occur are Recorded

= Completeness Assertion

Answer 83

A

Internal Control

All sales that actually occur are Recorded

= Completeness Assertion

Answer 84

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 85

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 86

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 87

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 88

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 89

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 90

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 91

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 92

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 93

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 94

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 95

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 96

A

Internal Control

Completeness Assertion

To ensure that all sales that actually occur are recorded,

Example of control

Require the use of prenumbered sales order forms
making certain that none are out of sequence

Answer 97

A

Internal Control

To ensure that only sales that actually occurred are recorded in the sales journal, the occurrence assertion,

the entity may establish a control requiring that sales be recorded in the sales journal only when there is a customer order form, a sales order form, a shipping report, and an invoice, all of which agree as to the goods that were sold and the price to be received for them.

To ensure that all sales that actually occur are recorded, the completeness assertion,

the entity may require the use of prenumbered sales order forms and account for all forms, including making certain that none are out of sequence.

Answer 98

A

The most commonly used framework to benchmark internal controls in the US is

Internal Control – Integrated Framework developed by COSO.

Answer 99

A

The most commonly used framework to benchmark internal controls in the US is

Internal Control – Integrated Framework developed by COSO.

Answer 100

A

The most commonly used framework to benchmark internal controls in the US is

Internal Control – Integrated Framework developed by COSO.

Answer 101

A

The most commonly used framework to benchmark internal controls in the US is

Internal Control – Integrated Framework developed by COSO.

Answer 102

A

The most commonly used framework to benchmark internal controls in the US is

Internal Control – Integrated Framework developed by COSO.

Answer 103

A

The most commonly used framework to benchmark internal controls in the US is

Internal Control – Integrated Framework developed by COSO.

Answer 104

A

The most commonly used framework to benchmark internal controls in the US is

Internal Control – Integrated Framework developed by COSO.

Answer 105

A

The most commonly used framework to benchmark internal controls in the US is

Internal Control – Integrated Framework developed by COSO.

Answer 106

A

Internal Control

The most commonly used framework to benchmark internal controls in the US is Internal Control – Integrated Framework developed by COSO.

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

(ACE).

Answer 107

A

Internal Control

The most commonly used framework to benchmark internal controls in the US is Internal Control – Integrated Framework developed by COSO.

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

(ACE).

Answer 108

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

Answer 109

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

Answer 110

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

Answer 111

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

Answer 112

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

Answer 113

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

Answer 114

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

Answer 115

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

Answer 116

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

Answer 117

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

Answer 118

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

Answer 119

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

Answer 120

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

Answer 121

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

Answer 122

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,

Answer 123

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,

Answer 124

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,

Answer 125

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,

Answer 126

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and

Answer 127

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and

Answer 128

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and

Answer 129

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and

Answer 130

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and

Answer 131

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and

Answer 132

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

(ACE).

Answer 133

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

(ACE).

Answer 134

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

(ACE).

Answer 135

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

(ACE).

Answer 136

A

Internal Control

COSO describes internal control as:

A process,

effected by the entity’s board of directors, management, and other personnel

designed to provide reasonable assurance

regarding the achievement of objectives
in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

(ACE).

Answer 137

A

Internal Control

COSO describes internal control as:

A process, effected by the entity’s board of directors, management, and other personnel designed to provide reasonable assurance regarding the achievement of objectives in the categories of

(1) A = Accurate and reliable financial reporting,
(2) C = Compliance with applicable laws and regulations, and
(3) E = Effectiveness and efficiency of operations

(ACE).

Answer 138

A

Internal Control

COSO describes internal control as:

A process, effected by the entity’s board of directors, management, and other personnel designed to provide reasonable assurance regarding the achievement of objectives in the categories of

(1) A = Accurate and reliable financial reporting,
(2) C = Compliance with applicable laws and regulations, and
(3) E = Effectiveness and efficiency of operations

(ACE).

Answer 139

A

Internal Control

COSO describes internal control as:

A PROCESS, effected by the entity’s board of directors, management, and other personnel DESIGNED to provide REASONABLE assurance regarding the achievement of objectives in the categories of

(1) A = Accurate and reliable financial reporting,
(2) C = Compliance with applicable laws and regulations, and
(3) E = Effectiveness and efficiency of operations

(ACE).

Answer 140

A

COSO describes internal control

ACE =

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

Answer 141

A

COSO describes internal control

ACE =

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

Answer 142

A

COSO describes internal control

ACE =

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

Answer 143

A

COSO describes internal control

ACE =

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

Answer 144

A

COSO describes internal control

ACE =

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

Answer 145

A

COSO describes internal control

ACE =

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

Answer 146

A

COSO describes internal control

ACE =

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

Answer 147

A

COSO describes internal control

ACE =

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and
(3) Effectiveness and efficiency of operations

Answer 148

A

Internal Control

The most commonly used framework to benchmark internal controls in the US is Internal Control – Integrated Framework developed by COSO.

COSO describes internal control as:

A PROCESS, effected by the entity’s board of directors, management, and other personnel DESIGNED to provide REASONABLE assurance regarding the achievement of objectives in the categories of

(1) Accurate and reliable financial reporting,
(2) Compliance with applicable laws and regulations, and (3) Effectiveness and efficiency of operations

(ACE).

Answer 149

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

Answer 150

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

Answer 151

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

Answer 152

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

Answer 153

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

Answer 154

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

Answer 155

A

DIM = Development, Implementation and Maintenance

Answer 156

A

DIM = Development, Implementation and Maintenance

Answer 157

A

DIM = Development, Implementation and Maintenance

Answer 158

A

DIM = Development, Implementation and Maintenance

Answer 159

A

DIM = Development, Implementation and Maintenance

Answer 160

A

DIM = Development, Implementation and Maintenance

Answer 161

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

The auditor seeks reasonable assurance that Internal controls are achieving certain Objectives (ACE):

Answer 162

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

The auditor seeks reasonable assurance that Internal controls are achieving certain Objectives (ACE):

Answer 163

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

The auditor seeks reasonable assurance that Internal controls are achieving certain Objectives (ACE):

Answer 164

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

The auditor seeks reasonable assurance that Internal controls are achieving certain Objectives (ACE):

o Accurate and Reliable financial reporting

Answer 165

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

The auditor seeks reasonable assurance that Internal controls are achieving certain Objectives (ACE):

o Accurate and Reliable financial reporting

Answer 166

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

The auditor seeks reasonable assurance that Internal controls are achieving certain Objectives (ACE):

o Accurate and Reliable financial reporting
o Compliance with laws and regulations

Answer 167

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

The auditor seeks reasonable assurance that Internal controls are achieving certain Objectives (ACE):

o Accurate and Reliable financial reporting
o Compliance with laws and regulations

Answer 168

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

The auditor seeks reasonable assurance that Internal controls are achieving certain Objectives (ACE):

o Accurate and Reliable financial reporting
o Compliance with laws and regulations

Answer 169

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

The auditor seeks reasonable assurance that Internal controls are achieving certain Objectives (ACE):

o Accurate and Reliable financial reporting
o Compliance with laws and regulations
o Effectiveness and efficiency of operations

Answer 170

A

Internal Control

• Management is responsible for the development, implementation and maintenance (DIM) of Internal controls.

The auditor seeks reasonable assurance that Internal controls are achieving certain Objectives (ACE):

o Accurate and Reliable financial reporting
o Compliance with laws and regulations
o Effectiveness and efficiency of operations

Answer 171

A

Internal Control

The mnemonic ACE will remind management that

it should try to establish a strong internal control structure so as to have an ACE in the hole.

Answer 172

A

Internal Control

The mnemonic ACE will remind management that

it should try to establish a strong internal control structure so as to have an ACE in the hole.

Answer 173

A

Internal Control

The mnemonic ACE will remind management that

it should try to establish a strong internal control structure so as to have an ACE in the hole.

Answer 174

A

Internal Control

Objectives (ACE):
o Accurate and Reliable financial reporting
o Compliance with laws and regulations
o Effectiveness and efficiency of operations

The mnemonic ACE will remind management that it should try to establish a strong internal control structure so as to have an ACE in the hole.

Answer 175

A

Internal Control

Objectives (ACE):

o Accurate and Reliable financial reporting
o Compliance with laws and regulations
o Effectiveness and efficiency of operations

The mnemonic ACE will remind management that it should try to establish a strong internal control structure so as to have an ACE in the hole.

Answer 176

A

Internal Control

Objectives (ACE):

o Accurate and Reliable financial reporting
o Compliance with laws and regulations
o Effectiveness and efficiency of operations

The mnemonic ACE will remind management that it should try to establish a strong internal control structure so as to have an ACE in the hole.

Answer 177

A

Internal Control

The primary interest of the outside auditor is in the first objective,

accurate and reliable financial reporting,

which relate to the fair presentation of the financial statements being audited.

Answer 178

A

Internal Control

The primary interest of the outside auditor is in the first objective,

accurate and reliable financial reporting,

which relate to the fair presentation of the financial statements being audited.

Answer 179

A

Internal Control

The primary interest of the outside auditor is in the first objective,

accurate and reliable financial reporting,

which relate to the fair presentation of the financial statements being audited.

Answer 180

A

Internal Control

The primary interest of the outside auditor is in the first objective,

accurate and reliable financial reporting,

which relate to the fair presentation of the financial statements being audited.

Answer 181

A

Internal Control

The primary interest of the outside auditor is in the first objective,

accurate and reliable financial reporting,

which relate to the fair presentation of the financial statements being audited.

Answer 182

A

Internal Control

The second goal,

compliance with laws and regulations,

is primarily relevant to compliance auditing,

which may occur in connection with audits under government auditing standards.

Answer 183

A

Internal Control

The second goal,

compliance with laws and regulations,

is primarily relevant to compliance auditing,

which may occur in connection with audits under government auditing standards.

Answer 184

A

Internal Control

The second goal,

compliance with laws and regulations,

is primarily relevant to compliance auditing,

which may occur in connection with audits under government auditing standards.

Answer 185

A

Internal Control

The second goal,

compliance with laws and regulations,

is primarily relevant to compliance auditing,

which may occur in connection with audits under government auditing standards.

Answer 186

A

Internal Control

The primary interest of the outside auditor is in the first objective, accurate and reliable financial reporting, which relate to the fair presentation of the financial statements being audited.

The second goal, compliance with laws and regulations, is primarily relevant to compliance auditing, which may occur in connection with audits under government auditing standards.

Answer 187

A

Internal Control

The primary interest of the outside auditor is in the first objective, accurate and reliable financial reporting, which relate to the fair presentation of the financial statements being audited.

The second goal, compliance with laws and regulations, is primarily relevant to compliance auditing, which may occur in connection with audits under government auditing standards.

Answer 188

A

Internal Control

The financial statement auditor would, however, be concerned about compliance with those laws and regulations that could have a material direct or indirect effect on the financial statements.

Answer 189

A

Internal Control

The financial statement auditor would, however, be concerned about compliance with those laws and regulations that could have a material direct or indirect effect on the financial statements.

Answer 190

A

Internal Control

The financial statement auditor would, however, be concerned about compliance with those laws and regulations that could have a material direct or indirect effect on the financial statements.

Answer 191

A

Internal Control

The financial statement auditor would, however, be concerned about compliance with those laws and regulations that could have a material direct or indirect effect on the financial statements.

Answer 192

A

Internal Control

The financial statement auditor would, however, be concerned about compliance with those laws and regulations that could have a material direct or indirect effect on the financial statements.

Answer 193

A

Internal Control

The second goal, compliance with laws and regulations, is primarily relevant to compliance auditing, which may occur in connection with audits under government auditing standards.

The financial statement auditor would, however, be concerned about compliance with those laws and regulations that could have a material direct or indirect effect on the financial statements.

Answer 194

A

Internal Control

The second goal, compliance with laws and regulations, is primarily relevant to compliance auditing, which may occur in connection with audits under government auditing standards.

The financial statement auditor would, however, be concerned about compliance with those laws and regulations that could have a material direct or indirect effect on the financial statements.

Answer 195

A

Internal Control

The third goal,

promoting effectiveness and efficiency of operations,

is generally not addressed by the financial statement auditor,

but is addressed in consulting engagements and operational audits.

Answer 196

A

Internal Control

The third goal,

promoting effectiveness and efficiency of operations,

is generally not addressed by the financial statement auditor,

but is addressed in consulting engagements and operational audits.

Answer 197

A

Internal Control

The third goal,

promoting effectiveness and efficiency of operations,

is generally not addressed by the financial statement auditor,

but is addressed in consulting engagements and operational audits.

Answer 198

A

Internal Control

The third goal,

promoting effectiveness and efficiency of operations,

is generally not addressed by the financial statement auditor,

but is addressed in consulting engagements and operational audits.

Answer 199

A

Internal Control

The third goal,

promoting effectiveness and efficiency of operations,

is generally not addressed by the financial statement auditor,

but is addressed in consulting engagements and operational audits.

Answer 200

A

Internal Control

The third goal,

promoting effectiveness and efficiency of operations,

is generally not addressed by the financial statement auditor,

but is addressed in consulting engagements and operational audits.

Answer 201

A

Internal Control

The third goal,

promoting effectiveness and efficiency of operations,

is generally not addressed by the financial statement auditor,

but is addressed in consulting engagements and operational audits.

Answer 202

A

Internal Control

The third goal,

promoting effectiveness and efficiency of operations,

is generally not addressed by the financial statement auditor,

but is addressed in consulting engagements and operational audits.

Answer 203

A

Internal Control

The third goal,

promoting effectiveness and efficiency of operations,

is generally not addressed by the financial statement auditor,

but is addressed in consulting engagements and operational audits.

Answer 204

A

Internal Control

The third goal,

promoting effectiveness and efficiency of operations,

is generally not addressed by the financial statement auditor,

but is addressed in consulting engagements and operational audits.

Answer 205

A

Internal Control

The third goal, promoting effectiveness and efficiency of operations, is generally not addressed by the financial statement auditor, but is addressed in consulting engagements and operational audits.

Answer 206

A

Internal Control

The third goal, promoting effectiveness and efficiency of operations, is generally not addressed by the financial statement auditor, but is addressed in consulting engagements and operational audits.

Answer 207

A

Internal Control

The primary interest of the outside auditor is in the first objective, (A) Accurate and Reliable financial reporting, which relate to the fair presentation of the financial statements being audited.

The second goal, (C) Compliance with laws and regulations, is primarily relevant to compliance auditing, which may occur in connection with audits under government auditing standards.

The financial statement auditor would, however, be concerned about compliance with those laws and regulations that could have a material direct or indirect effect on the financial statements.

The third goal, promoting (E) Effectiveness and efficiency of operations, is generally not addressed by the financial statement auditor, but is addressed in consulting engagements and operational audits.

Answer 208

A

Internal Control

(A) Accurate and Reliable financial reporting
– > relate to the FAIR presentation of the financial statements being audited

(C) Compliance with laws and regulations
–> relevant to COMPLIANCE auditing
(government auditing standards)

(E) Effectiveness and efficiency of operations
–> addressed in CONSULTING engagements and OPERATIONAL audits

Answer 209

A

Internal Control

(A) Accurate and Reliable financial reporting
– > relate to the FAIR presentation of the financial statements being audited

(C) Compliance with laws and regulations
–> relevant to COMPLIANCE auditing
(government auditing standards)

(E) Effectiveness and efficiency of operations
–> addressed in CONSULTING engagements and OPERATIONAL audits

Answer 210

A

Internal Control

(A) Accurate and Reliable financial reporting
– > relate to the FAIR presentation of the financial statements being audited

(C) Compliance with laws and regulations
–> relevant to COMPLIANCE auditing
(government auditing standards)

(E) Effectiveness and efficiency of operations
–> addressed in CONSULTING engagements and OPERATIONAL audits

Answer 211

A

Internal Control

(A) Accurate and Reliable financial reporting
– > relate to the FAIR presentation of the financial statements being audited

(C) Compliance with laws and regulations
–> relevant to COMPLIANCE auditing
(government auditing standards)

(E) Effectiveness and efficiency of operations
–> addressed in CONSULTING engagements and OPERATIONAL audits

Answer 212

A

Internal Control

(A) Accurate and Reliable financial reporting
– > relate to the FAIR presentation of the financial statements being audited

(C) Compliance with laws and regulations
–> relevant to COMPLIANCE auditing
(government auditing standards)

(E) Effectiveness and efficiency of operations
–> addressed in CONSULTING engagements and OPERATIONAL audits

Answer 213

A

Internal Control

(A) Accurate and Reliable financial reporting
– > relate to the FAIR presentation of the financial statements being audited

(C) Compliance with laws and regulations
–> relevant to COMPLIANCE auditing
(government auditing standards)

(E) Effectiveness and efficiency of operations
–> addressed in CONSULTING engagements and OPERATIONAL audits

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AUD 3 Internal Control 4 Flashcards

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