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

Question 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.

Answer

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.

Question 2

Q

Elements of Internal Control: (CRIME)

Control Environment (CHOPPER)
Risk Assessment
Control Activities
Information and Communication
Monitoring

or

5 components of internal control
(CRIME)

Control activities
Risk assessment
Information and communication
Monitoring
Control Environment

Answer

A

Elements of Internal Control: (CRIME)

Control Environment (CHOPPER)
Risk Assessment
Control Activities
Information and Communication
Monitoring

or

5 components of internal control
(CRIME)

Control activities
Risk assessment
Information and communication
Monitoring
Control Environment

Question 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

Answer

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

Question 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.

Answer

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.

Question 5

Q

Elements of Internal Control: (CRIME)

E : Control Environment

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

Answer

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:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Question 6

Q

Elements of Internal Control: (CRIME)

E : Control Environment

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

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment

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

Question 7

Q

Elements of Internal Control: (CRIME)

E : Control Environment

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

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment

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

Question 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:

Answer

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:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Question 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_________:

Answer

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:

Question 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:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Answer

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:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Question 11

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Question 12

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a com________ to integrity and ethical values;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;

Question 13

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Dem________ a commitment to integrity and ethical values;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;

Question 14

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to int______ and ethical values;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;

Question 15

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and eth____ values;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;

Question 16

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

M_________ and those charge with governance:

Demonstrate a commitment to integrity and ethical values;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;

Question 17

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those ch____ with governance:

Exercise their oversight responsibility;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Exercise their oversight responsibility;

Question 18

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Exercise their oversight res________;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Exercise their oversight responsibility;

Question 19

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Ex_______ their oversight responsibility;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Exercise their oversight responsibility;

Question 20

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Exercise their over_____ responsibility;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Exercise their oversight responsibility;

Question 21

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Establish stru____, authority, and responsibility;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Establish structure, authority, and responsibility;

Question 22

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Establish structure, auth_____, and responsibility;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Establish structure, authority, and responsibility;

Question 23

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Esta____ structure, authority, and responsibility;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Establish structure, authority, and responsibility;

Question 24

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Establish structure, authority, and resp_______;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Establish structure, authority, and responsibility;

Question 25

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to comp________;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to competence;

Question 26

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a comm______ to competence;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to competence;

Question 27

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Dem________ a commitment to competence;

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to competence;

Question 28

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Enforce acco_______y.

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Enforce accountability.

Question 29

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Enf____ accountability.

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Enforce accountability.

Question 30

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and th___ charge with governance:

Enforce accountability.

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Enforce accountability.

Question 31

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 pr_______s

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Question 32

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Dem_______ a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Question 33

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Ex_______ their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Question 34

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Est______ structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Question 35

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Dem________ a commitment to competence; and
Enforce accountability.

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Question 36

Q

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enf____ accountability.

Answer

A

Elements of Internal Control: (CRIME)

E : Control Environment
5 principles

Management and those charge with governance:

Demonstrate a commitment to integrity and ethical values;
Exercise their oversight responsibility;
Establish structure, authority, and responsibility;
Demonstrate a commitment to competence; and
Enforce accountability.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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.

Answer

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.

Question 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________.

Answer

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.

Question 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.

Answer

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.

Question 61

Q

What is entity-level controls?

Answer

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.

Question 62

Q

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

Answer

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.

Question 63

Q

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

Answer

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.

Question 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.

Answer

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.

Answer 65

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.

Answer 66

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.

Answer 67

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.

Answer 68

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.

Answer 69

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.

Answer 70

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.

Answer 71

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.

Answer 72

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

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

Answer 73

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

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

Answer 74

A

Elements of Internal Control: (CRIME)

E : Control Environment

Entity-level controls include

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

Answer 75

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;

Answer 76

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;

Answer 77

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;

Answer 78

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;

Answer 79

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;

Answer 80

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;

Answer 81

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;

Answer 82

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;

Answer 83

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;

Answer 84

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;

Answer 85

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;

Answer 86

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.

Answer 87

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.

Answer 88

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.

Answer 89

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.

Answer 90

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.

Answer 91

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.

Answer 92

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.

Answer 93

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.

Answer 94

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.

Answer 95

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.

Answer 96

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.

Answer 97

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.

Answer 98

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.

Answer 99

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.

Answer 100

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.

Answer 101

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.

Answer 102

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.

Answer 103

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.

Answer 104

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.

Answer 105

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.

Answer 106

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.

Answer 107

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.

Answer 108

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.

Answer 109

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.

Answer 110

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.

Answer 111

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.

Answer 112

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.

Answer 113

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.

Answer 114

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.

Answer 115

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.

Answer 116

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.

Answer 117

A

Elements of Internal Control: (CRIME)

Control Environment (CHOPPER)
Risk Assessment
Control Activities
Information and Communication
Monitoring

or

5 components of internal control
(CRIME)

Control activities
Risk assessment
Information and communication
Monitoring
Control Environment

Answer 118

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 119

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 120

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 121

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 122

A

Elements of Internal Control: (CRIME)

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

Answer 123

A

Elements of Internal Control: (CRIME)

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

Answer 124

A

Elements of Internal Control: (CRIME)

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

Answer 125

A

Elements of Internal Control: (CRIME)

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

Answer 126

A

Elements of Internal Control: (CRIME)

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

Answer 127

A

Elements of Internal Control: (CRIME)

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.

Answer 128

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 129

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 130

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 131

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 132

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 133

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 134

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 135

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 136

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 137

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 138

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 139

A

Elements of Internal Control: (CRIME)

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.

Answer 140

A

Elements of Internal Control: (CRIME)

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.

Answer 141

A

Elements of Internal Control: (CRIME)

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.

Answer 142

A

Elements of Internal Control: (CRIME)

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.

Answer 143

A

Elements of Internal Control: (CRIME)

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.

Answer 144

A

Elements of Internal Control: (CRIME)

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.

Answer 145

A

Elements of Internal Control: (CRIME)

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.

Answer 146

A

Elements of Internal Control: (CRIME)

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.

Answer 147

A

Elements of Internal Control: (CRIME)

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.

Answer 148

A

Elements of Internal Control: (CRIME)

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.

Answer 149

A

Elements of Internal Control: (CRIME)

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.

Answer 150

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

Risks relevant to financial reporting include external and internal factors

Answer 151

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

Risks relevant to financial reporting include external and internal factors

Answer 152

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

Risks relevant to financial reporting include external and internal factors

Answer 153

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

Risks relevant to financial reporting include external and internal factors

Answer 154

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Changes in the operating environment

Answer 155

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Changes in the operating environment

Answer 156

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Changes in the operating environment

Answer 157

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• New personnel

Answer 158

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• New or revamped information systems

Answer 159

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• New or revamped information systems

Answer 160

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Rapid growth

Answer 161

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Rapid growth

Answer 162

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• New technology

Answer 163

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• New technology

Answer 164

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• New lines of business, products, or activities

Answer 165

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• New lines of business, products, or activities

Answer 166

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• New lines of business, products, or activities

Answer 167

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Corporate restructurings

Answer 168

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Corporate restructurings

Answer 169

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Foreign operations

Answer 170

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Foreign operations

Answer 171

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Changes to accounting pronouncements

Answer 172

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Changes to accounting pronouncements

Answer 173

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Changes to the economic environment

Answer 174

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

• Changes to the economic environment

Answer 175

A

Elements of Internal Control: (CRIME)

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

Answer 176

A

Elements of Internal Control: (CRIME)

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

Answer 177

A

Elements of Internal Control: (CRIME)

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

Answer 178

A

Elements of Internal Control: (CRIME)

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

Answer 179

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 180

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 181

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

Answer 182

A

Elements of Internal Control: (CRIME)

R = Risk Assessment
4 principles

management and those charged with governance:

Specify suitable objectives;

Answer 183

A

Elements of Internal Control: (CRIME)

R = Risk Assessment
4 principles

management and those charged with governance:

Specify suitable objectives;

Answer 184

A

Elements of Internal Control: (CRIME)

R = Risk Assessment
4 principles

management and those charged with governance:

Specify suitable objectives;

Answer 185

A

Elements of Internal Control: (CRIME)

R = Risk Assessment
4 principles

management and those charged with governance:

Identify and analyze risk;

Answer 186

A

Elements of Internal Control: (CRIME)

R = Risk Assessment
4 principles

management and those charged with governance:

Identify and analyze risk;

Answer 187

A

Elements of Internal Control: (CRIME)

R = Risk Assessment
4 principles

management and those charged with governance:

Assess fraud risk;

Answer 188

A

Elements of Internal Control: (CRIME)

R = Risk Assessment
4 principles

management and those charged with governance:

Assess fraud risk;

Answer 189

A

Elements of Internal Control: (CRIME)

R = Risk Assessment
4 principles

management and those charged with governance:

Specify suitable objectives;
Identify and analyze risk;
Assess fraud risk; and
Identify and analyze significant change.

Answer 190

A

Elements of Internal Control: (CRIME)

R = Risk Assessment
4 principles

management and those charged with governance:

Identify and analyze significant change.

Answer 191

A

Elements of Internal Control: (CRIME)

R = Risk Assessment
4 principles

management and those charged with governance:

Identify and analyze significant change.

Answer 192

A

Elements of Internal Control: (CRIME)

R = Risk Assessment
4 principles

management and those charged with governance:

Identify and analyze significant change.

Answer 193

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

They indicate that management and those charged with governance:

Specify suitable objectives;
Identify and analyze risk;
Assess fraud risk; and
Identify and analyze significant change.

Answer 194

A

Elements of Internal Control: (CRIME)

R = Risk Assessment
4 principles

management and those charged with governance:

Specify suitable objectives;
Identify and analyze risk;
Assess fraud risk; and
Identify and analyze significant change.

Answer 195

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

They indicate that management and those charged with governance:

Specify suitable objectives;
Identify and analyze risk;
Assess fraud risk; and
Identify and analyze significant change.

Answer 196

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

They indicate that management and those charged with governance:

Specify suitable objectives;
Identify and analyze risk;
Assess fraud risk; and
Identify and analyze significant change.

Answer 197

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

They indicate that management and those charged with governance:

Specify suitable objectives;
Identify and analyze risk;
Assess fraud risk; and
Identify and analyze significant change.

Answer 198

A

Elements of Internal Control: (CRIME)

R = Risk Assessment

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

They indicate that management and those charged with governance:

Specify suitable objectives;
Identify and analyze risk;
Assess fraud risk; and
Identify and analyze significant change.

Answer 199

A

Elements of Internal Control: (CRIME)

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

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

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