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CPA AUD Flashcards > AUD 3 Internal Control 6 - 5 Components of Internal Control (CRIME) > Flashcards

AUD 3 Internal Control 6 - 5 Components of Internal Control (CRIME) Flashcards

1
Q

5 Components of Internal Control

AU-C 315 requires the auditor to ob____ an understanding of all 5 components of internal control under COSO

in order to evaluate the design of relevant controls
and determine
whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.

A

5 Components of Internal Control

AU-C 315 requires the auditor to obtain an understanding of all 5 components of internal control under COSO

in order to evaluate the design of relevant controls
and determine
whether they have been implemented;
assess the risk of material misstatement;
and design the nature, timing and extent of further audit procedures.

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2
Q

Elements of Internal Control: (CRIME)

  1. Control Environment (CHOPPER)
  2. Risk Assessment
  3. Control Activities
  4. Information and Communication
  5. Monitoring

or

5 components of internal control
(CRIME)

  • Control activities
  • Risk assessment
  • Information and communication
  • Monitoring
  • Control Environment
A

Elements of Internal Control: (CRIME)

  1. Control Environment (CHOPPER)
  2. Risk Assessment
  3. Control Activities
  4. Information and Communication
  5. Monitoring

or

5 components of internal control
(CRIME)

  • Control activities
  • Risk assessment
  • Information and communication
  • Monitoring
  • Control Environment
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3
Q

Elements of Internal Control: (CRIME)

Control environment factors include (CHOPPER):

  • Commitment to competence
  • Human resource policies and practices
  • Organizational structure
  • Participation of those charged with Governance
  • Philosophy of management and mgt operating style
  • Ethical values and Integrity
  • Responsibility assignment
A

Elements of Internal Control: (CRIME)

Control environment factors include (CHOPPER):

  • Commitment to competence
  • Human resource policies and practices
  • Organizational structure
  • Participation of those charged with Governance
  • Philosophy of management and mgt operating style
  • Ethical values and Integrity
  • Responsibility assignment
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4
Q

Elements of Internal Control: (CRIME)

E : Control Environment
Factors (CHOPPER)

• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.

• H = Human resource policies and practices
– A company can minimize the control difficulties created by new employees by sound hiring and training policies for employees.

• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.

• P = Participation of those charged with Governance
– An audit committee of the board of directors that actively monitors the internal audit function produces a more attentive management on such matters.

• P = Philosophy of management and mgt operating style
– The belief (or lack of it) in the importance of internal control by management will affect the seriousness with which it is taken by the rest of the employees. This is especially the case when decision-making in the company is dominated by a single individual.

• E = Ethical values and Integrity
– Honest employees will be less likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.

• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees determines the controls that will be needed. Again, the domination of decision-making by a single individual holds significance, since such power makes it extremely difficult for internal control to be trusted.

A

Elements of Internal Control: (CRIME)

E : Control Environment
Factors (CHOPPER)

• C = Commitment to competence
– Effective control requires a sincere interest on the part of the employees in performing good work.

• H = Human resource policies and practices
– A company can minimize the control difficulties created by new employees by sound hiring and training policies for employees.

• O = Organizational structure
– A company that operates all over the world has different internal control problems than one operating entirely within a single building.

• P = Participation of those charged with Governance
– An audit committee of the board of directors that actively monitors the internal audit function produces a more attentive management on such matters.

• P = Philosophy of management and mgt operating style
– The belief (or lack of it) in the importance of internal control by management will affect the seriousness with which it is taken by the rest of the employees. This is especially the case when decision-making in the company is dominated by a single individual.

• E = Ethical values and Integrity
– Honest employees will be less likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.

• R = Responsibility assignment
– The manner in which authority, responsibility and accountability is assigned to different employees determines the controls that will be needed. Again, the domination of decision-making by a single individual holds significance, since such power makes it extremely difficult for internal control to be trusted.

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5
Q

Elements of Internal Control: (CRIME)

E : Control Environment

COSO has indicated that there 5 five principles related to the control env________.

A

Elements of Internal Control: (CRIME)

E : Control Environment

COSO has indicated that there are 5 principles related to the control environment.

They indicate that management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
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6
Q

Elements of Internal Control: (CRIME)

E : Control Environment

COSO has indicated that there are 5 prin_____s related to the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

COSO has indicated that there are 5 principles related to the control environment.

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7
Q

Elements of Internal Control: (CRIME)

E : Control Environment

C___ has indicated that there are 5 principles related to the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

COSO has indicated that there are 5 principles related to the control environment.

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8
Q

Elements of Internal Control: (CRIME)

E : Control Environment

COSO has indicated that there are 5 principles related to the control environment.

They indicate that ma_________ and those charge with governance:

A

Elements of Internal Control: (CRIME)

E : Control Environment

COSO has indicated that there are 5 principles related to the control environment.

They indicate that management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
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9
Q

Elements of Internal Control: (CRIME)

E : Control Environment

COSO has indicated that there are 5 principles related to the control environment.

They indicate that management and those charge with gov_________:

A

Elements of Internal Control: (CRIME)

E : Control Environment

COSO has indicated that there are 5 principles related to the control environment.

They indicate that management and those charge with governance:

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10
Q

Elements of Internal Control: (CRIME)

E : Control Environment

COSO has indicated that there are _ principles related to the control environment.

They indicate that management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
A

Elements of Internal Control: (CRIME)

E : Control Environment

COSO has indicated that there are 5 principles related to the control environment.

They indicate that management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
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11
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
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12
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a com________ to integrity and ethical values;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
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13
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Dem________ a commitment to integrity and ethical values;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
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14
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to int______ and ethical values;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
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15
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and eth____ values;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
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16
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

M_________ and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
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17
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those ch____ with governance:

  1. Exercise their oversight responsibility;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Exercise their oversight responsibility;
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18
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Exercise their oversight res________;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Exercise their oversight responsibility;
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19
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Ex_______ their oversight responsibility;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Exercise their oversight responsibility;
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20
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Exercise their over_____ responsibility;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Exercise their oversight responsibility;
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21
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Establish stru____, authority, and responsibility;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Establish structure, authority, and responsibility;
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22
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Establish structure, auth_____, and responsibility;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Establish structure, authority, and responsibility;
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23
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Esta____ structure, authority, and responsibility;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Establish structure, authority, and responsibility;
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24
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Establish structure, authority, and resp_______;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Establish structure, authority, and responsibility;
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25
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to comp________;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to competence;
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26
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a comm______ to competence;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to competence;
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27
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Dem________ a commitment to competence;
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to competence;
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28
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Enforce acco_______y.
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Enforce accountability.
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29
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Enf____ accountability.
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Enforce accountability.
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30
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and th___ charge with governance:

  1. Enforce accountability.
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Enforce accountability.
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31
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 pr_______s

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
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32
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Dem_______ a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
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33
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Ex_______ their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
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34
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Est______ structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
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35
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Dem________ a commitment to competence; and
  5. Enforce accountability.
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
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36
Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enf____ accountability.
A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

  1. Demonstrate a commitment to integrity and ethical values;
  2. Exercise their oversight responsibility;
  3. Establish structure, authority, and responsibility;
  4. Demonstrate a commitment to competence; and
  5. Enforce accountability.
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37
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The au______ is responsible for determining
if the control environment,
influenced by management
with the oversight of those charged with governance,
has established an honest culture, promoting ethical behavior.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by management
with the oversight of those charged with governance,
has established an honest culture, promoting ethical behavior.

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38
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control env__________,
influenced by management
with the oversight of those charged with governance,
has established an honest culture, promoting ethical behavior.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by management
with the oversight of those charged with governance,
has established an honest culture, promoting ethical behavior.

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39
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for det______ing
if the control environment,
influenced by management with the oversight of those charged with governance,
has established an honest culture, promoting ethical behavior.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by management with the oversight of those charged with governance,
has established an honest culture, promoting ethical behavior.

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40
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by m__________
with the oversight of those charged with governance,
has established an honest culture, promoting ethical behavior.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by management
with the oversight of those charged with governance,
has established an honest culture, promoting ethical behavior.

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41
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by management
with the over________ of those charged with governance,
has established an honest culture, promoting ethical behavior.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by management
with the oversight of those charged with governance,
has established an honest culture, promoting ethical behavior.

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42
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by management
with the oversight of those charged with gov________,
has established an honest culture, promoting ethical behavior.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by management
with the oversight of those charged with governance,
has established an honest culture, promoting ethical behavior.

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43
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by management
with the oversight of those charged with governance,
has established an ho____ culture, promoting ethical behavior.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by management
with the oversight of those charged with governance,
has established an honest culture, promoting ethical behavior.

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44
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by management
with the oversight of those charged with governance,
has established an honest culture, promoting et_____ behavior.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining
if the control environment,
influenced by management
with the oversight of those charged with governance,
has established an honest culture, promoting ethical behavior.

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45
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining if the control environment, inf_____ed by management with the oversight of those charged with governance, has established an honest culture, promoting ethical behavior.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining if the control environment, influenced by management with the oversight of those charged with governance, has established an honest culture, promoting ethical behavior.

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46
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining if the control environment, influenced by management with the oversight of those charged with governance, has est______ed an honest culture, promoting ethical behavior.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining if the control environment, influenced by management with the oversight of those charged with governance, has established an honest culture, promoting ethical behavior.

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47
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining if the control environment, influenced by management with the oversight of those charged with governance, has established an honest culture, promoting ethical be___ior.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining if the control environment, influenced by management with the oversight of those charged with governance, has established an honest culture, promoting ethical behavior.

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48
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is res________ for determining if the control environment, influenced by management with the oversight of those charged with governance, has established an honest culture, promoting ethical behavior.

The control environment, consisting of what are referred to as entity-level controls, should provide a foundation for the overall internal control structure, including the other components and for assuring that internal controls are not undermined by deficiencies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor is responsible for determining if the control environment, influenced by management with the oversight of those charged with governance, has established an honest culture, promoting ethical behavior.

The control environment, consisting of what are referred to as entity-level controls, should provide a foundation for the overall internal control structure, including the other components and for assuring that internal controls are not undermined by deficiencies in the control environment.

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49
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control env_________,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

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50
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level con____s,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

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51
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as en____-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

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52
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-le___ controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

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53
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foun_______ for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

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54
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control stru_______,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

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55
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other com_______s
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

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56
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for ass__ing that internal controls are not undermined
by deficiencies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

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57
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not under___ed
by deficiencies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

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58
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by def______ies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

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59
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control envi________.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment,
consisting of what are referred to as entity-level controls,
should provide a foundation for the overall internal control structure,
including the other components
and for assuring that internal controls are not undermined
by deficiencies in the control environment.

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60
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment, consisting of what are referred to as entity-level controls, should provide a foundation for the overall internal control structure, including the other components and for assuring that internal controls are n__ undermined by deficiencies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment, consisting of what are referred to as entity-level controls, should provide a foundation for the overall internal control structure, including the other components and for assuring that internal controls are not undermined by deficiencies in the control environment.

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61
Q

What is entity-level controls?

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment, consisting of what are referred to as entity-level controls.

The entity-level controls should provide a foundation for the overall internal control structure, including the other components and for assuring that internal controls are not undermined by deficiencies in the control environment.

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62
Q

What level of controls that provide a foundation for the overall internal control structure?

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls should provide a foundation for the overall internal control structure, including the other components and for assuring that internal controls are not undermined by deficiencies in the control environment.

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63
Q

What level of controls is assuring that internal controls are not undermined by deficiencies in the control environment?

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment, consisting of what are referred to as entity-level controls, should provide a foundation for the overall internal control structure, including the other components and for assuring that internal controls are not undermined by deficiencies in the control environment.

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64
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment, consisting of what are referred to as entity-level controls, should pro____ a foundation for the overall internal control structure, including the other components and for assuring that internal controls are not undermined by deficiencies in the control environment.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The control environment, consisting of what are referred to as entity-level controls, should provide a foundation for the overall internal control structure, including the other components and for assuring that internal controls are not undermined by deficiencies in the control environment.

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65
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the org________, involve the assignment of authority and responsibility, and address conduct.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

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66
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with com____-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

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67
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the t___ of the organization, involve the assignment of authority and responsibility, and address conduct.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

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68
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the ass________ of authority and responsibility, and address conduct.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

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69
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and res_________, and address conduct.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

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70
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of auth_____ and responsibility, and address conduct.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

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71
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address con____.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

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72
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission stat______ that is part of the entity’s culture;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

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73
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s cult___;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

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74
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a miss___ statement that is part of the entity’s culture;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

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75
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a c___ of conduct that applies to all members of the organization, including management;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

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76
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of con___ that applies to all members of the organization, including management;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

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77
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that app__es to all members of the organization, including management;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

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78
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to a__ members of the organization, including management;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

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79
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including m___________;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

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80
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

orga________ charts and job descriptions that indicate the roles of individuals within the organization;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

81
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization ch___s and job descriptions that indicate the roles of individuals within the organization;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

82
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job des_______s that indicate the roles of individuals within the organization;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

83
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and j__ descriptions that indicate the roles of individuals within the organization;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

84
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the r___s of individuals within the organization;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

85
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of ind_______s within the organization;

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

86
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of m__________ and executives,
which is often considered one of the more significant components.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and executives,
which is often considered one of the more significant components.

87
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and exe_____es,
which is often considered one of the more significant components.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and executives,
which is often considered one of the more significant components.

88
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and executives,
which is often considered one of the more sig_______ components.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and executives,
which is often considered one of the more significant components.

89
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and executives,
which is often considered one of the m___ significant components.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and executives,
which is often considered one of the more significant components.

90
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and executives,
which is often considered one of the more significant com________s.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and executives,
which is often considered one of the more significant components.

91
Q

Elements of Internal Control: (CRIME)

E : Control Environment

En___y-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and executives,
which is often considered one of the more significant components.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and executives,
which is often considered one of the more significant components.

92
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-le___ controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and executives,
which is often considered one of the more significant components.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

a mission statement that is part of the entity’s culture;

a code of conduct that applies to all members of the organization, including management;

organization charts and job descriptions that indicate the roles of individuals within the organization;

and the behavior of management and executives,
which is often considered one of the more significant components.

93
Q

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level con____s include a mission statement that is part of the entity’s culture; a code of conduct that applies to all members of the organization, including management; organization charts and job descriptions that indicate the roles of individuals within the organization; and the behavior of management and executives, which is often considered one of the more significant components.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include a mission statement that is part of the entity’s culture; a code of conduct that applies to all members of the organization, including management; organization charts and job descriptions that indicate the roles of individuals within the organization; and the behavior of management and executives, which is often considered one of the more significant components.

94
Q

Elements of Internal Control: (CRIME)

E : Control Environment

En___y-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

Entity-level controls include a mission statement that is part of the entity’s culture; a code of conduct that applies to all members of the organization, including management; organization charts and job descriptions that indicate the roles of individuals within the organization; and the behavior of management and executives, which is often considered one of the more significant components.

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

Entity-level controls include a mission statement that is part of the entity’s culture; a code of conduct that applies to all members of the organization, including management; organization charts and job descriptions that indicate the roles of individuals within the organization; and the behavior of management and executives, which is often considered one of the more significant components.

95
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The a______ obtains knowledge of entity-level controls through inquiries made of management and others and through observations.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inquiries made of management and others and through observations.

96
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inq___ies made of management and others and through observations.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inquiries made of management and others and through observations.

97
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inquiries made of m_________ and others and through observations.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inquiries made of management and others and through observations.

98
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inquiries made of management and others and through obs_______s.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inquiries made of management and others and through observations.

99
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inquiries made of management and ot___s and through observations.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inquiries made of management and others and through observations.

100
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains know_____ of entity-level controls through inquiries made of management and others and through observations.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inquiries made of management and others and through observations.

101
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control env________ by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

102
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply obs___ing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

103
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply observing the relationship between em____ees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

104
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their sup______s and management and, in particular, if employees at all levels are shown an appropriate level of respect.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

105
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and m_________ and, in particular, if employees at all levels are shown an appropriate level of respect.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

106
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at a__ levels are shown an appropriate level of respect.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

107
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of resp____.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

108
Q

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor ob____s knowledge of entity-level controls through inquiries made of management and others and through observations.

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

A

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inquiries made of management and others and through observations.

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

109
Q

How does the auditor obtains knowledge of entity-level controls?

A

Through inquiries made of management and others and through observations

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inquiries made of management and others and through observations.

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

110
Q

What is the auditor should be observing in order to obtains knowledge of entity-level controls?

A

The auditor should be observing the relationship between employees and their supervisors and management

and, in particular, if employees at all levels are shown an appropriate level of respect.

Elements of Internal Control: (CRIME)

E : Control Environment

The auditor obtains knowledge of entity-level controls through inquiries made of management and others and through observations.

The auditor can often learn a great deal about the control environment by simply observing the relationship between employees and their supervisors and management and, in particular, if employees at all levels are shown an appropriate level of respect.

111
Q

What level of controls deal with company-wide issues?

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

Entity-level controls include a mission statement that is part of the entity’s culture; a code of conduct that applies to all members of the organization, including management; organization charts and job descriptions that indicate the roles of individuals within the organization; and the behavior of management and executives, which is often considered one of the more significant components.

112
Q

What level of controls involve the assignment of authority and responsibility, and address conduct?

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

Entity-level controls include a mission statement that is part of the entity’s culture; a code of conduct that applies to all members of the organization, including management; organization charts and job descriptions that indicate the roles of individuals within the organization; and the behavior of management and executives, which is often considered one of the more significant components.

113
Q

What level of controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct?

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

Entity-level controls include a mission statement that is part of the entity’s culture; a code of conduct that applies to all members of the organization, including management; organization charts and job descriptions that indicate the roles of individuals within the organization; and the behavior of management and executives, which is often considered one of the more significant components.

114
Q

What should be included at entity-level controls?

  • A mi______ statement
  • A c___ of conduct
  • Organization ch___s and j__ descriptions
  • The behavior of m___________ and executives
A

What should be included at entity-level controls?

  • A mission statement
  • A code of conduct
  • Organization charts and job descriptions
  • The behavior of management and executives

— Longer answer ———-

  • A mission statement that is part of the entity’s culture
  • A code of conduct that applies to all members of the organization, including management
  • Organization charts and job descriptions that indicate the roles of individuals within the organization
  • The behavior of management and executives, which is often considered one of the more significant components.

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include a mission statement that is part of the entity’s culture; a code of conduct that applies to all members of the organization, including management; organization charts and job descriptions that indicate the roles of individuals within the organization; and the behavior of management and executives, which is often considered one of the more significant components.

115
Q

What should be included at entity-level controls that is often considered one of the more significant components?

A

What should be included at entity-level controls that is often considered one of the more significant components?

  • The behavior of management and executives

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include a mission statement that is part of the entity’s culture; a code of conduct that applies to all members of the organization, including management; organization charts and job descriptions that indicate the roles of individuals within the organization; and the behavior of management and executives, which is often considered one of the more significant components.

116
Q

What level of controls involve the assignment of responsibility, and address conduct?

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls deal with company-wide issues and set the tone of the organization, involve the assignment of authority and responsibility, and address conduct.

Entity-level controls include a mission statement that is part of the entity’s culture; a code of conduct that applies to all members of the organization, including management; organization charts and job descriptions that indicate the roles of individuals within the organization; and the behavior of management and executives, which is often considered one of the more significant components.

117
Q

Elements of Internal Control: (CRIME)

  1. Control Environment (CHOPPER)
  2. Risk Assessment
  3. Control Activities
  4. Information and Communication
  5. Monitoring

or

5 components of internal control
(CRIME)

  • Control activities
  • Risk assessment
  • Information and communication
  • Monitoring
  • Control Environment
A

Elements of Internal Control: (CRIME)

  1. Control Environment (CHOPPER)
  2. Risk Assessment
  3. Control Activities
  4. Information and Communication
  5. Monitoring

or

5 components of internal control
(CRIME)

  • Control activities
  • Risk assessment
  • Information and communication
  • Monitoring
  • Control Environment
118
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk ass________ for financial reporting purposes is its
identification,
analysis, and
management of risks

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

119
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An en____’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

120
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
ide_______,
analysis, and
management of risks

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

121
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
ana_____, and
management of risks

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

122
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of r___s

relevant to the preparation of financial statements that are fairly presented in conformity with GAAP

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

relevant to the preparation of financial statements that are fairly presented in conformity with GAAP

123
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
m_________ of risks

relevant to the preparation of financial statements that are fairly presented in conformity with GAAP

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

relevant to the preparation of financial statements that are fairly presented in conformity with GAAP

124
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

relevant to the pre________ of financial statements that are fairly presented in conformity with GAAP

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

relevant to the preparation of financial statements that are fairly presented in conformity with GAAP

125
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

relevant to the preparation of financial statements that are fairly presented in conformity with G___

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

relevant to the preparation of financial statements that are fairly presented in conformity with GAAP

126
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

relevant to the preparation of financial statements that are fa____ presented in conformity with GAAP

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

relevant to the preparation of financial statements that are fairly presented in conformity with GAAP

127
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

relevant to the preparation of financial statements that are fairly presented in conformity with GAAP

or whatever financial reporting fr_______k that will be applied in the preparation.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its
identification,
analysis, and
management of risks

relevant to the preparation of financial statements that are fairly presented in conformity with GAAP

or whatever financial reporting framework that will be applied in the preparation.

128
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

R___ assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

129
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes r___s that may affect an entity’s ability to properly record, process, summarize, and report financial data.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

130
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an e____y’s ability to properly record, process, summarize, and report financial data.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

131
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly rec___, process, summarize, and report financial data.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

132
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, pro____, summarize, and report financial data.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

133
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, process, sum_______, and report financial data.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

134
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and rep___ financial data.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

135
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial d___.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

136
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

R___ assessment, for example, may address
how the entity considers the possibility of unrecorded transactions

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions

137
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
h__ the entity considers the possibility of unrecorded transactions

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions

138
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unre____ed transactions

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions

139
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded trans_______s
or
identifies and analyzes significant estimates recorded
in the financial statements.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions
or
identifies and analyzes significant estimates recorded
in the financial statements.

140
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions
or
ide_____ies and analyzes significant estimates recorded
in the financial statements.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions
or
identifies and analyzes significant estimates recorded
in the financial statements.

141
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions
or
identifies and ana____s significant estimates recorded
in the financial statements.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions
or
identifies and analyzes significant estimates recorded
in the financial statements.

142
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions
or
identifies and analyzes sig________ estimates recorded
in the financial statements.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions
or
identifies and analyzes significant estimates recorded
in the financial statements.

143
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions
or
identifies and analyzes significant est_______s recorded
in the financial statements.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions
or
identifies and analyzes significant estimates recorded
in the financial statements.

144
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions
or
identifies and analyzes significant estimates recorded
in the financial sta________s.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address
how the entity considers the possibility of unrecorded transactions
or
identifies and analyzes significant estimates recorded
in the financial statements.

145
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may add_____ how the entity considers the possibility of unrecorded transactions or identifies and analyzes significant estimates recorded in the financial statements.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment, for example, may address how the entity considers the possibility of unrecorded transactions or identifies and analyzes significant estimates recorded in the financial statements.

146
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment incl___s risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

Risk assessment, for example, may address how the entity considers the possibility of unrecorded transactions or identifies and analyzes significant estimates recorded in the financial statements.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

Risk assessment, for example, may address how the entity considers the possibility of unrecorded transactions or identifies and analyzes significant estimates recorded in the financial statements.

147
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for fi_______ reporting purposes is its identification, analysis, and management of risks relevant to the preparation of financial statements that are fairly presented in conformity with GAAP or whatever financial reporting framework that will be applied in the preparation.

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

Risk assessment, for example, may address how the entity considers the possibility of unrecorded transactions or identifies and analyzes significant estimates recorded in the financial statements.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its identification, analysis, and management of risks relevant to the preparation of financial statements that are fairly presented in conformity with GAAP or whatever financial reporting framework that will be applied in the preparation.

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

Risk assessment, for example, may address how the entity considers the possibility of unrecorded transactions or identifies and analyzes significant estimates recorded in the financial statements.

148
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting pur____s is its identification, analysis, and management of risks relevant to the preparation of financial statements that are fairly presented in conformity with GAAP or whatever financial reporting framework that will be applied in the preparation.

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

Risk assessment, for example, may address how the entity considers the possibility of unrecorded transactions or identifies and analyzes significant estimates recorded in the financial statements.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is its identification, analysis, and management of risks relevant to the preparation of financial statements that are fairly presented in conformity with GAAP or whatever financial reporting framework that will be applied in the preparation.

Risk assessment includes risks that may affect an entity’s ability to properly record, process, summarize, and report financial data.

Risk assessment, for example, may address how the entity considers the possibility of unrecorded transactions or identifies and analyzes significant estimates recorded in the financial statements.

149
Q

What is an entity’s risk assessment for financial reporting purposes?

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

An entity’s risk assessment for financial reporting purposes is

its identification, analysis, and management of risks
relevant to the preparation of financial statements
that are fairly presented in conformity with GAAP

or other framework that will be applied in the preparation.

150
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include ex____ and internal factors

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors

151
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and in______l factors

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors

152
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks re_______ to financial reporting include external and internal factors

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors

153
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

R___s relevant to financial reporting include external and internal factors

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors

154
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Changes in the operating env_________

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Changes in the operating environment

155
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Ch___es in the operating environment

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Changes in the operating environment

156
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Changes in the ope___ing environment

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Changes in the operating environment

157
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• N__ personnel

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• New personnel

158
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• N__ or revamped information systems

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• New or revamped information systems

159
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• New or revamped inf_________ systems

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• New or revamped information systems

160
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Rapid gr__th

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Rapid growth

161
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Ra___ growth

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Rapid growth

162
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• N__ technology

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• New technology

163
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• New tech_______

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• New technology

164
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• N__ lines of business, products, or activities

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• New lines of business, products, or activities

165
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• New lines of business, pro____s, or activities

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• New lines of business, products, or activities

166
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• New lines of business, products, or acti_____s

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• New lines of business, products, or activities

167
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Corporate restr_______s

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Corporate restructurings

168
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Cor_______ restructurings

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Corporate restructurings

169
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Fore___ operations

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Foreign operations

170
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Foreign oper_____s

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Foreign operations

171
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Ch___es to accounting pronouncements

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Changes to accounting pronouncements

172
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Changes to accounting prono________s

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Changes to accounting pronouncements

173
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Ch___es to the economic environment

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Changes to the economic environment

174
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Changes to the eco______ environment

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

• Changes to the economic environment

175
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

  • Cha__es in the operating environment
  • N__ personnel
  • N__ or revamped information systems
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

  • Changes in the operating environment
  • New personnel
  • New or revamped information systems
176
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

  • Ra___ growth
  • N__ technology
  • N__ lines of business, products, or activities
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

  • Rapid growth
  • New technology
  • New lines of business, products, or activities
177
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

  • Corporate restr________s
  • Foreign ope_______s
  • Ch___es to accounting pronouncements
  • Ch___es to the economic environment
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

  • Corporate restructurings
  • Foreign operations
  • Changes to accounting pronouncements
  • Changes to the economic environment
178
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial re____ing include external and internal factors, such as:

  • Changes in the operating environment
  • New personnel
  • New or revamped information systems
  • Rapid growth
  • New technology
  • New lines of business, products, or activities
  • Corporate restructurings
  • Foreign operations
  • Changes to accounting pronouncements
  • Changes to the economic environment
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

  • Changes in the operating environment
  • New personnel
  • New or revamped information systems
  • Rapid growth
  • New technology
  • New lines of business, products, or activities
  • Corporate restructurings
  • Foreign operations
  • Changes to accounting pronouncements
  • Changes to the economic environment
179
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

C___ has indicated that there are 4 principles related to risk assessment.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to risk assessment.

180
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 p________es related to risk assessment.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to risk assessment.

181
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to r___ assessment.

A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to risk assessment.

182
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Specify suitable obje_____s;
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Specify suitable objectives;
183
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Spe___y suitable objectives;
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Specify suitable objectives;
184
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Specify suit____ objectives;
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Specify suitable objectives;
185
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Ide____ and analyze risk;
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Identify and analyze risk;
186
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Identify and ana____ risk;
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Identify and analyze risk;
187
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Assess fr__d risk
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Assess fraud risk;
188
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Ass___ fraud risk
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Assess fraud risk;
189
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
190
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Ide____y and analyze significant change.
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Identify and analyze significant change.
191
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Identify and analyze sig________ change.
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Identify and analyze significant change.
192
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Identify and analyze significant ch___e.
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Identify and analyze significant change.
193
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to risk assessment.

They indicate that management and those charged with governance:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to risk assessment.

They indicate that management and those charged with governance:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
194
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment
    4 principles

management and those charged with governance:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
195
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are _ principles related to risk assessment.

They indicate that management and those charged with governance:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to risk assessment.

They indicate that management and those charged with governance:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
196
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to risk assessment.

They indicate that management and those ch___ed with governance:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to risk assessment.

They indicate that management and those charged with governance:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
197
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to risk assessment.

They indicate that management and those charged with gov_______:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to risk assessment.

They indicate that management and those charged with governance:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
198
Q

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to risk assessment.

They indicate that management and those charged with governance:

  1. Sp____y suitable objectives;
  2. Ide____y and analyze risk;
  3. Ass___ fraud risk; and
  4. Ide____ and analyze significant change.
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

COSO has indicated that there are 4 principles related to risk assessment.

They indicate that management and those charged with governance:

  1. Specify suitable objectives;
  2. Identify and analyze risk;
  3. Assess fraud risk; and
  4. Identify and analyze significant change.
199
Q

Provide examples of risks relevant to financial reporting, include external and internal factors:

Answer:
• Changes in the operating environment
• New personnel
• New or revamped information systems
• Rapid growth
• New technology
• New lines of business, products, or activities
• Corporate restructurings
• Foreign operations
• Changes to accounting pronouncements
• Changes to the economic environment
A

Elements of Internal Control: (CRIME)

  1. R = Risk Assessment

Risks relevant to financial reporting include external and internal factors, such as:

  • Changes in the operating environment
  • New personnel
  • New or revamped information systems
  • Rapid growth
  • New technology
  • New lines of business, products, or activities
  • Corporate restructurings
  • Foreign operations
  • Changes to accounting pronouncements
  • Changes to the economic environment

CPA AUD Flashcards (62 decks)

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