AUD 3 Internal Control 8 Flashcards

Question 1

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

The mnemonic CRIME reminds management that it would be a crime not to consider all of the internal control elements when designing the system.

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

The mnemonic CRIME reminds management that it would be a crime not to consider all of the internal control elements when designing the system.

Question 2

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The info________ and communication component of internal control relates to the flow of information to and from the entity as well as within the entity.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and from the entity as well as within the entity.

Question 3

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the fl__ of information to and from the entity as well as within the entity.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and from the entity as well as within the entity.

Question 4

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information t_ and from the entity as well as within the entity.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and from the entity as well as within the entity.

Question 5

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and f___ the entity as well as within the entity.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and from the entity as well as within the entity.

Question 6

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and from the entity as well as wit___ the entity.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and from the entity as well as within the entity.

Question 7

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and from the e____y as well as within the entity.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and from the entity as well as within the entity.

Question 8

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Inf________ should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them and so that management can obtain feedback to determine if objectives are being achieved.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and from the entity as well as within the entity.

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them and so that management can obtain feedback to determine if objectives are being achieved.

Question 9

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should fl__ in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

Question 10

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all dir_____s so that management’s directives can be properly communicated to those who are expected to work toward achieving them

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

Question 11

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in a__ directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

Question 12

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s dir______s can be properly communicated to those who are expected to work toward achieving them

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

Question 13

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly com_________ed to those who are expected to work toward achieving them

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

Question 14

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward ac_____ing them

and so that management can obtain feedback to determine if objectives are being achieved.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can obtain feedback to determine if objectives are being achieved.

Question 15

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that m__________ can obtain feedback to determine if objectives are being achieved.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can obtain feedback to determine if objectives are being achieved.

Question 16

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can ob____ feedback to determine if objectives are being achieved.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can obtain feedback to determine if objectives are being achieved.

Question 17

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can obtain fee____k to determine if objectives are being achieved.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can obtain feedback to determine if objectives are being achieved.

Question 18

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can obtain feedback to de_______e if objectives are being achieved.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can obtain feedback to determine if objectives are being achieved.

Question 19

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can obtain feedback to determine if obj_______s are being achieved.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can obtain feedback to determine if objectives are being achieved.

Question 20

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can obtain feedback to determine if objectives are being ac_______ed.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can obtain feedback to determine if objectives are being achieved.

Question 21

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication com________ of internal control relates to the flow of information to and from the entity as well as within the entity.

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them and so that management can obtain feedback to determine if objectives are being achieved.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and from the entity as well as within the entity.

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them and so that management can obtain feedback to determine if objectives are being achieved.

Question 22

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and from the entity as well as within the entity.

Information should flow in all directions so that management’s directives can be properly communicated to those who are ex____ed to work toward achieving them and so that management can obtain feedback to determine if objectives are being achieved.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to the flow of information to and from the entity as well as within the entity.

Information should flow in all directions so that management’s directives can be properly communicated to those who are expected to work toward achieving them and so that management can obtain feedback to determine if objectives are being achieved.

Question 23

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with ext______ parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

Question 24

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Comm_________ with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

Question 25

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the fl__ of goods and services and enhances the efficiency with which business can be conducted.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

Question 26

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and en_______s the efficiency with which business can be conducted.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

Question 27

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the eff______y with which business can be conducted.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

Question 28

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be con____ed.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

Question 29

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other en___ies with which an entity does business to assist in the enforcement of the entity’s internal controls.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal controls.

Question 30

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to as___t in the enforcement of the entity’s internal controls.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal controls.

Question 31

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does bus___ss to assist in the enforcement of the entity’s internal controls.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal controls.

Question 32

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the en______ent of the entity’s internal controls.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal controls.

Question 33

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s in_______ controls.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal controls.

Question 34

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal con____s.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal controls.

Question 35

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business cus______s are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Question 36

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are inf___ed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Question 37

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all s___s are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Question 38

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales f___,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Question 39

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be rep___ed on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Question 40

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

cust____s may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Question 41

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may pre____ a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Question 42

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order with___ completing such a form,
which may be done for inappropriate purposes.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Question 43

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without com____ing such a form,
which may be done for inappropriate purposes.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Question 44

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate pur____s.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

If business customers are informed, for example,
that all sales are expected to be reported on a specific pre-numbered sales form,

customers may prevent a sales person from taking an order without completing such a form,
which may be done for inappropriate purposes.

Question 45

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal controls.

If business customers are informed, for example, that all sales are expected to be reported on a specific pre-num___ed sales form, customers may prevent a sales person from taking an order without completing such a form, which may be done for inappropriate purposes.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal controls.

If business customers are informed, for example, that all sales are expected to be reported on a specific pre-numbered sales form, customers may prevent a sales person from taking an order without completing such a form, which may be done for inappropriate purposes.

Question 46

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal controls.

If business customers are informed, for example, that all sales are expected to be reported on a spe___ic pre-numbered sales form, customers may prevent a sales person from taking an order without completing such a form, which may be done for inappropriate purposes.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal controls.

If business customers are informed, for example, that all sales are expected to be reported on a specific pre-numbered sales form, customers may prevent a sales person from taking an order without completing such a form, which may be done for inappropriate purposes.

Question 47

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with ex_____l parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal controls.

If business customers are informed, for example, that all sales are expected to be reported on a specific pre-numbered sales form, customers may prevent a sales person from taking an order without completing such a form, which may be done for inappropriate purposes.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Communication with external parties facilitates the flow of goods and services and enhances the efficiency with which business can be conducted.

It also enables parties and other entities with which an entity does business to assist in the enforcement of the entity’s internal controls.

If business customers are informed, for example, that all sales are expected to be reported on a specific pre-numbered sales form, customers may prevent a sales person from taking an order without completing such a form, which may be done for inappropriate purposes.

Question 48

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The au_____ is concerned, in particular, with information systems relevant to financial reporting.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor is concerned, in particular, with information systems relevant to financial reporting.

Question 49

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor is concerned, in particular, with information sys___s relevant to financial reporting.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor is concerned, in particular, with information systems relevant to financial reporting.

Question 50

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor is concerned, in particular, with information systems rel_____ to financial reporting.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor is concerned, in particular, with information systems relevant to financial reporting.

Question 51

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor is concerned, in particular, with information systems relevant to fi______ reporting.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor is concerned, in particular, with information systems relevant to financial reporting.

Question 52

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor is concerned, in particular, with information systems relevant to financial reporting.

The auditor, as a result, should ob____ an understanding related to how:

Info system consists of the methods and records
Communication involves establishing individual duties and responsibilities
Transactions are initiated, authorized, and processed
Accountability is maintained for assets, liability, and equity
The incorrect processing of transactions
Recurring and nonrecurring JE, unusual transactions, and adjustments
System overrides or bypasses to controls
Information is transferred from the processing systems to the GL
Events and conditions, other than transactions
Financial statements are prepared/ estimation
Information that is required to be disclosed

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor is concerned, in particular, with information systems relevant to financial reporting.

The auditor, as a result, should obtain an understanding related to how:

Info system consists of the methods and records
Communication involves establishing individual duties and responsibilities
Transactions are initiated, authorized, and processed
Accountability is maintained for assets, liability, and equity
The incorrect processing of transactions
Recurring and nonrecurring JE, unusual transactions, and adjustments
System overrides or bypasses to controls
Information is transferred from the processing systems to the GL
Events and conditions, other than transactions
Financial statements are prepared/ estimation
Information that is required to be disclosed

Question 53

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the me____s and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Question 54

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and re____s used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Question 55

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
rec___,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Question 56

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
pro____,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Question 57

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
sum______ and
report Co.’s transactions
and to maintain accountability for the related accounts.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Question 58

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s tr_________s
and to maintain accountability for the related accounts.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Question 59

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to ma______ accountability for the related accounts.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Question 60

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain acc_______y for the related accounts.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Question 61

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related acc____s.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Question 62

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system con____s of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Info system consists of the methods and records used to
record,
process,
summarize and
report Co.’s transactions
and to maintain accountability for the related accounts.

Question 63

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Comm_________ involves establishing individual duties and responsibilities
relating to internal control
and making them known to involved personnel.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Communication involves establishing individual duties and responsibilities
relating to internal control
and making them known to involved personnel.

Question 64

Q

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Communication involves establishing individual duties and resp________ies
relating to internal control
and making them known to involved personnel.

Answer

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Communication involves establishing individual duties and responsibilities
relating to internal control
and making them known to involved personnel.

Answer 65

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Communication involves establishing individual duties and responsibilities
relating to internal control
and making them known to involved personnel.

Answer 66

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Communication involves establishing individual duties and responsibilities
relating to internal control
and making them known to involved personnel.

Answer 67

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Communication involves establishing individual duties and responsibilities
relating to internal control
and making them known to involved personnel.

Answer 68

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Communication involves establishing individual duties and responsibilities
relating to internal control
and making them known to involved personnel.

Answer 69

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Communication involves establishing individual duties and responsibilities
relating to internal control
and making them known to involved personnel.

Answer 70

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Transactions are initiated, authorized, and processed; and
how transactions, events, and conditions are reported,
including which components are performed manually
and which are performed electronically.

Answer 71

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Transactions are initiated, authorized, and processed; and
how transactions, events, and conditions are reported,
including which components are performed manually
and which are performed electronically.

Answer 72

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Transactions are initiated, authorized, and processed; and
how transactions, events, and conditions are reported,
including which components are performed manually
and which are performed electronically.

Answer 73

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Transactions are initiated, authorized, and processed; and
how transactions, events, and conditions are reported,
including which components are performed manually
and which are performed electronically.

Answer 74

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Transactions are initiated, authorized, and processed; and
how transactions, events, and conditions are reported,
including which components are performed manually
and which are performed electronically.

Answer 75

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Transactions are initiated, authorized, and processed; and
how transactions, events, and conditions are reported,
including which components are performed manually
and which are performed electronically.

Answer 76

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Transactions are initiated, authorized, and processed; and
how transactions, events, and conditions are reported,
including which components are performed manually
and which are performed electronically.

Answer 77

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Transactions are initiated, authorized, and processed; and
how transactions, events, and conditions are reported,
including which components are performed manually
and which are performed electronically.

Answer 78

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Transactions are initiated, authorized, and processed; and
how transactions, events, and conditions are reported,
including which components are performed manually
and which are performed electronically.

Answer 79

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Transactions are initiated, authorized, and processed; and
how transactions, events, and conditions are reported,
including which components are performed manually
and which are performed electronically.

Answer 80

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Transactions are initiated, authorized, and processed; and
how transactions, events, and conditions are reported,
including which components are performed manually
and which are performed electronically.

Answer 81

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

Info system consists of the methods and records used to record, process, summarize and report Co.’s transactions and to maintain accountability for the related accounts.
Communication involves establishing individual duties and responsibilities relating to internal control and making them known to involved personnel.
Transactions are initiated, authorized, and processed; and how transactions, events, and conditions are reported, including which components are performed manually and which are performed electronically.

Answer 82

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Accountability is maintained for assets, liability, and equity,
including the maintenance of records supporting information or specific items in the financial statements.

Answer 83

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Accountability is maintained for assets, liability, and equity,
including the maintenance of records supporting information or specific items in the financial statements.

Answer 84

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Accountability is maintained for assets, liability, and equity,
including the maintenance of records supporting information or specific items in the financial statements.

Answer 85

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Accountability is maintained for assets, liability, and equity,
including the maintenance of records supporting information or specific items in the financial statements.

Answer 86

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Accountability is maintained for assets, liability, and equity,
including the maintenance of records supporting information or specific items in the financial statements.

Answer 87

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Accountability is maintained for assets, liability, and equity,
including the maintenance of records supporting information or specific items in the financial statements.

Answer 88

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Accountability is maintained for assets, liability, and equity,
including the maintenance of records supporting information or specific items in the financial statements.

Answer 89

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Accountability is maintained for assets, liability, and equity,
including the maintenance of records supporting information or specific items in the financial statements.

Answer 90

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• The incorrect processing of transactions is identified and resolved.

Answer 91

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• The incorrect processing of transactions is identified and resolved.

Answer 92

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• The incorrect processing of transactions is identified and resolved.

Answer 93

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• The incorrect processing of transactions is identified and resolved.

Answer 94

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• The incorrect processing of transactions is identified and resolved.

Answer 95

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Recurring and nonrecurring journal entries,
unusual transactions,
and other adjustments
are identified and prepared.

Answer 96

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Recurring and nonrecurring journal entries,
unusual transactions,
and other adjustments
are identified and prepared.

Answer 97

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Recurring and nonrecurring journal entries,
unusual transactions,
and other adjustments
are identified and prepared.

Answer 98

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Recurring and nonrecurring journal entries,
unusual transactions,
and other adjustments
are identified and prepared.

Answer 99

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Recurring and nonrecurring journal entries,
unusual transactions,
and other adjustments
are identified and prepared.

Answer 100

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Recurring and nonrecurring journal entries,
unusual transactions,
and other adjustments
are identified and prepared.

Answer 101

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Recurring and nonrecurring journal entries,
unusual transactions,
and other adjustments
are identified and prepared.

Answer 102

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Recurring and nonrecurring journal entries,
unusual transactions,
and other adjustments
are identified and prepared.

Answer 103

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

Accountability is maintained for assets, liability, and equity, including the maintenance of records supporting information or specific items in the financial statements.
The incorrect processing of transactions is identified and resolved.
Recurring and nonrecurring journal entries, unusual transactions, and other adjustments are identified and prepared.

Answer 104

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• System overrides or bypasses to controls are processed and accounted for.

Answer 105

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• System overrides or bypasses to controls are processed and accounted for.

Answer 106

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• System overrides or bypasses to controls are processed and accounted for.

Answer 107

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• System overrides or bypasses to controls are processed and accounted for.

Answer 108

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• System overrides or bypasses to controls are processed and accounted for.

Answer 109

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• System overrides or bypasses to controls are processed and accounted for.

Answer 110

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information is transferred from the processing systems to the general ledger.

Answer 111

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information is transferred from the processing systems to the general ledger.

Answer 112

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information is transferred from the processing systems to the general ledger.

Answer 113

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information is transferred from the processing systems to the general ledger.

Answer 114

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information is transferred from the processing systems to the general ledger.

Answer 115

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information is transferred from the processing systems to the general ledger.

Answer 116

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Events and conditions, other than transactions, that are relevant to financial reporting,
including depreciation and amortization of assets
and collectibility of receivables,
are identified, and how information is captured.

Answer 117

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Events and conditions, other than transactions, that are relevant to financial reporting,
including depreciation and amortization of assets
and collectibility of receivables,
are identified, and how information is captured.

Answer 118

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Events and conditions, other than transactions, that are relevant to financial reporting,
including depreciation and amortization of assets
and collectibility of receivables,
are identified, and how information is captured.

Answer 119

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Events and conditions, other than transactions, that are relevant to financial reporting,
including depreciation and amortization of assets
and collectibility of receivables,
are identified, and how information is captured.

Answer 120

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Events and conditions, other than transactions, that are relevant to financial reporting,
including depreciation and amortization of assets
and collectibility of receivables,
are identified, and how information is captured.

Answer 121

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Events and conditions, other than transactions, that are relevant to financial reporting,
including depreciation and amortization of assets
and collectibility of receivables,
are identified, and how information is captured.

Answer 122

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Events and conditions, other than transactions, that are relevant to financial reporting,
including depreciation and amortization of assets
and collectibility of receivables,
are identified, and how information is captured.

Answer 123

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Events and conditions, other than transactions, that are relevant to financial reporting,
including depreciation and amortization of assets
and collectibility of receivables,
are identified, and how information is captured.

Answer 124

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Events and conditions, other than transactions, that are relevant to financial reporting,
including depreciation and amortization of assets
and collectibility of receivables,
are identified, and how information is captured.

Answer 125

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Events and conditions, other than transactions, that are relevant to financial reporting,
including depreciation and amortization of assets
and collectibility of receivables,
are identified, and how information is captured.

Answer 126

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Events and conditions, other than transactions, that are relevant to financial reporting,
including depreciation and amortization of assets
and collectibility of receivables,
are identified, and how information is captured.

Answer 127

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

System overrides or bypasses to controls are processed and accounted for.
Information is transferred from the processing systems to the general ledger.
Events and conditions, other than transactions, that are relevant to financial reporting, including depreciation and amortization of assets and collectibility of receivables, are identified, and how information is captured.

Answer 128

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Financial statements are prepared, including the development of estimates.

Answer 129

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Financial statements are prepared, including the development of estimates.

Answer 130

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Financial statements are prepared, including the development of estimates.

Answer 131

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Financial statements are prepared, including the development of estimates.

Answer 132

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information that is required to be disclosed is 
identified, 
accumulated, 
recorded, 
processed, 
summarized, and 
properly reported.

Answer 133

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information that is required to be disclosed is 
identified, 
accumulated, 
recorded, 
processed, 
summarized, and 
properly reported.

Answer 134

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information that is required to be disclosed is 
identified, 
accumulated, 
recorded, 
processed, 
summarized, and 
properly reported.

Answer 135

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information that is required to be disclosed is 
identified, 
accumulated, 
recorded, 
processed, 
summarized, and 
properly reported.

Answer 136

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information that is required to be disclosed is 
identified, 
accumulated, 
recorded, 
processed, 
summarized, and 
properly reported.

Answer 137

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information that is required to be disclosed is 
identified, 
accumulated, 
recorded, 
processed, 
summarized, and 
properly reported.

Answer 138

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information that is required to be disclosed is 
identified, 
accumulated, 
recorded, 
processed, 
summarized, and 
properly reported.

Answer 139

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information that is required to be disclosed is 
identified, 
accumulated, 
recorded, 
processed, 
summarized, and 
properly reported.

Answer 140

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

• Information that is required to be disclosed is 
identified, 
accumulated, 
recorded, 
processed, 
summarized, and 
properly reported.

Answer 141

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

Financial statements are prepared, including the development of estimates.
Information that is required to be disclosed is identified, accumulated, recorded, processed, summarized, and properly reported.

Answer 142

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The auditor should obtain an understanding related to how:

Info system consists of the methods and records used to record, process, summarize and report Co.’s transactions and to maintain accountability for the related accounts.
Communication involves establishing individual duties and responsibilities relating to internal control and making them known to involved personnel.
Transactions are initiated, authorized, and processed; and how transactions, events, and conditions are reported, including which components are performed manually and which are performed electronically.
Accountability is maintained for assets, liability, and equity, including the maintenance of records supporting information or specific items in the financial statements.
The incorrect processing of transactions is identified and resolved.
Recurring and nonrecurring journal entries, unusual transactions, and other adjustments are identified and prepared.
System overrides or bypasses to controls are processed and accounted for.
Information is transferred from the processing systems to the general ledger.
Events and conditions, other than transactions, that are relevant to financial reporting, including depreciation and amortization of assets and collectibility of receivables, are identified, and how information is captured.
Financial statements are prepared, including the development of estimates.
Information that is required to be disclosed is identified, accumulated, recorded, processed, summarized, and properly reported.

Answer 143

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

COSO has indicated that there are 3 principles related to information and communication.

Answer 144

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

COSO has indicated that there are 3 principles related to information and communication.

Answer 145

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

COSO has indicated that there are 3 principles related to information and communication.

Answer 146

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

COSO has indicated that there are 3 principles related to information and communication.

Answer 147

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

COSO has indicated that there are 3 principles related to information and communication.

They indicate that management and those charge with governance:

Use relevant information;
Communicate internally; and
Communicate externally.

Answer 148

A

Elements of Internal Control: (CRIME)

• I = Information and Communication
3 principles

management and those charge with governance:

Use relevant information
Communicate internally
Communicate externally

Answer 149

A

Elements of Internal Control: (CRIME)

• I = Information and Communication
3 principles

management and those charge with governance:

Use relevant information

Answer 150

A

Elements of Internal Control: (CRIME)

• I = Information and Communication
3 principles

management and those charge with governance:

Use relevant information

Answer 151

A

Elements of Internal Control: (CRIME)

• I = Information and Communication
3 principles

management and those charge with governance:

Use relevant information

Answer 152

A

Elements of Internal Control: (CRIME)

• I = Information and Communication
3 principles

management and those charge with governance:

Communicate internally

Answer 153

A

Elements of Internal Control: (CRIME)

• I = Information and Communication
3 principles

management and those charge with governance:

Communicate internally

Answer 154

A

Elements of Internal Control: (CRIME)

• I = Information and Communication
3 principles

management and those charge with governance:

Communicate externally

Answer 155

A

Elements of Internal Control: (CRIME)

• I = Information and Communication
3 principles

management and those charge with governance:

Communicate externally

Answer 156

A

Elements of Internal Control: (CRIME)

• I = Information and Communication
3 principles

management and those charge with governance:

Use relevant information
Communicate internally
Communicate externally

Answer 157

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

The information and communication component of internal control relates to

the flow of information to and from the entity as well as within the entity.

Answer 158

A

Elements of Internal Control: (CRIME)

• I = Information and Communication

Why the Information should flow in all directions?

Information should flow in all directions

so that (1) management’s directives can be properly communicated

and so that (2) management can obtain feedback

or long answer —-

Information should flow in all directions

so that management’s directives can be properly communicated to those who are expected to work toward achieving them

and so that management can obtain feedback to determine if objectives are being achieved.

Answer 159

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 160

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Monitoring activities are the means by which management determines if internal controls are being followed and if they are effective.

Answer 161

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Monitoring activities are the means by which management determines if internal controls are being followed and if they are effective.

Answer 162

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Monitoring activities are the means by which management determines if internal controls are being followed and if they are effective.

Answer 163

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Monitoring activities are the means by which management determines if internal controls are being followed and if they are effective.

Answer 164

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Monitoring activities are the means by which management determines if internal controls are being followed and if they are effective.

Answer 165

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Monitoring activities are the means by which management determines if internal controls are being followed and if they are effective.

Answer 166

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Monitoring activities are the means by which management determines if internal controls are being followed and if they are effective.

Answer 167

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Controls are monitored thorough some combination of ongoing activities, which are generally part of recurring activities such as the supervision of employees; and separate evaluations.

Answer 168

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Controls are monitored thorough some combination of ongoing activities, which are generally part of recurring activities

Answer 169

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Controls are monitored thorough some combination of ongoing activities, which are generally part of recurring activities

Answer 170

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Controls are monitored thorough some combination of ongoing activities, which are generally part of recurring activities

Answer 171

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Controls are monitored thorough some combination of ongoing activities, which are generally part of recurring activities

Answer 172

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Controls are monitored thorough some combination of ongoing activities, which are generally part of recurring activities
such as the supervision of employees; and separate evaluations.

Answer 173

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Controls are monitored thorough some combination of ongoing activities, which are generally part of recurring activities
such as the supervision of employees; and separate evaluations.

Answer 174

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Controls are monitored thorough some combination of ongoing activities, which are generally part of recurring activities
such as the supervision of employees; and separate evaluations.

Answer 175

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Controls are monitored thorough some combination of ongoing activities, which are generally part of recurring activities
such as the supervision of employees; and separate evaluations.

Answer 176

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Monitoring activities are the means by which management determines if internal controls are being followed and if they are effective.

Controls are monitored thorough some combination of ongoing activities, which are generally part of recurring activities such as the supervision of employees; and separate evaluations.

Answer 177

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Monitoring activities are the means by which management determines if internal controls are being followed and if they are effective.

Controls are monitored thorough some combination of ongoing activities, which are generally part of recurring activities such as the supervision of employees; and separate evaluations.

Answer 178

A

Elements of Internal Control: (CRIME)

• M = Monitoring

Monitoring activities are the means by which management determines if internal controls are being followed and if they are effective.

Controls are monitored thorough some combination of ongoing activities, which are generally part of recurring activities such as the supervision of employees; and separate evaluations.

Answer 179

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function,
understanding the role it plays
contributes to the auditor’s understanding of the entity and its environment,
and, in particular, its internal control.

Answer 180

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function,
understanding the role it plays
contributes to the auditor’s understanding of the entity and its environment,
and, in particular, its internal control.

Answer 181

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function,
understanding the role it plays
contributes to the auditor’s understanding of the entity and its environment,
and, in particular, its internal control.

Answer 182

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function,
understanding the role it plays
contributes to the auditor’s understanding of the entity and its environment,
and, in particular, its internal control.

Answer 183

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function,
understanding the role it plays
contributes to the auditor’s understanding of the entity and its environment,
and, in particular, its internal control.

Answer 184

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function,
understanding the role it plays
contributes to the auditor’s understanding of the entity and its environment,
and, in particular, its internal control.

Answer 185

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function,
understanding the role it plays
contributes to the auditor’s understanding of the entity and its environment,
and, in particular, its internal control.

Answer 186

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function,
understanding the role it plays
contributes to the auditor’s understanding of the entity and its environment,
and, in particular, its internal control.

Answer 187

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function,
understanding the role it plays
contributes to the auditor’s understanding of the entity and its environment,
and, in particular, its internal control.

Answer 188

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function, understanding the role it plays contributes to the auditor’s understanding of the entity and its environment, and, in particular, its internal control.

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

Answer 189

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

Answer 190

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

Answer 191

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

Answer 192

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

either to modify the nature, timing,
or extent of other audit procedures to be performed,
or to assist in the performance of audit procedures
under the oversight of the auditor.

Answer 193

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

either to modify the nature, timing, or extent of other audit procedures to be performed,

Answer 194

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

either to modify the nature, timing, or extent of other audit procedures to be performed,

Answer 195

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

either to modify the nature, timing, or extent of other audit procedures to be performed,

Answer 196

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

either to modify the nature, timing, or extent of other audit procedures to be performed,

Answer 197

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

either to modify the nature, timing, or extent of other audit procedures to be performed,

Answer 198

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

either to modify the nature, timing, or extent of other audit procedures to be performed,
or to assist in the performance of audit procedures
under the oversight of the auditor.

Answer 199

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

either to modify the nature, timing, or extent of other audit procedures to be performed,
or to assist in the performance of audit procedures
under the oversight of the auditor.

Answer 200

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

either to modify the nature, timing, or extent of other audit procedures to be performed,
or to assist in the performance of audit procedures
under the oversight of the auditor.

Answer 201

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

either to modify the nature, timing, or extent of other audit procedures to be performed,
or to assist in the performance of audit procedures
under the oversight of the auditor.

Answer 202

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

either to modify the nature, timing, or extent of other audit procedures to be performed,
or to assist in the performance of audit procedures
under the oversight of the auditor.

Answer 203

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function…

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s

either to modify the nature, timing, or extent of other audit procedures to be performed,
or to assist in the performance of audit procedures
under the oversight of the auditor.

Answer 204

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function, understanding the role it plays contributes to the auditor’s understanding of the entity and its environment, and, in particular, its internal control.

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s either to modify the nature, timing, or extent of other audit procedures to be performed, or to assist in the performance of audit procedures under the oversight of the auditor.

Answer 205

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function, understanding the role it plays contributes to the auditor’s understanding of the entity and its environment, and, in particular, its internal control.

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s either to modify the nature, timing, or extent of other audit procedures to be performed, or to assist in the performance of audit procedures under the oversight of the auditor.

Answer 206

A

Elements of Internal Control: (CRIME)

• M = Monitoring

When the entity has an internal audit function, understanding the role it plays contributes to the auditor’s understanding of the entity and its environment, and, in particular, its internal control.

In some circumstances, the auditor may USE the work performed by the entity’s internal auditor’s either to MODIFY the nature, timing, or extent of other audit procedures to be performed, or to ASSIST in the performance of audit procedures under the oversight of the auditor.

Answer 207

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,

Answer 208

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,

Answer 209

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,

Answer 210

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,

Answer 211

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,

Answer 212

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,

Answer 213

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,

Answer 214

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,

Answer 215

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,
the sources of that information,

Answer 216

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,
the sources of that information,

Answer 217

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,
the sources of that information,
and the basis upon which the reliability of the information is evaluated.

Answer 218

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,
the sources of that information,
and the basis upon which the reliability of the information is evaluated.

Answer 219

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,
the sources of that information,
and the basis upon which the reliability of the information is evaluated.

Answer 220

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,
the sources of that information,
and the basis upon which the reliability of the information is evaluated.

Answer 221

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls,

the auditor should also obtain an understanding of
the information that is used in the entity’s monitoring activities,
the sources of that information,
and the basis upon which the reliability of the information is evaluated.

Answer 222

A

Elements of Internal Control: (CRIME)

• M = Monitoring

In addition to obtaining an understanding of how the entity monitors its internal controls, the auditor should also obtain an understanding of the information that is used in the entity’s monitoring activities, the sources of that information, and the basis upon which the reliability of the information is evaluated.

Answer 223

A

Elements of Internal Control: (CRIME)

• M = Monitoring

COSO has indicated that there are 2 principles related to monitoring.

Answer 224

A

Elements of Internal Control: (CRIME)

• M = Monitoring

COSO has indicated that there are 2 principles related to monitoring.

Answer 225

A

Elements of Internal Control: (CRIME)

• M = Monitoring

COSO has indicated that there are 2 principles related to monitoring.

Answer 226

A

Elements of Internal Control: (CRIME)

• M = Monitoring

COSO has indicated that there are 2 principles related to monitoring.

Answer 227

A

Elements of Internal Control: (CRIME)

• M = Monitoring

COSO has indicated that there are 2 principles related to monitoring.

they indicate that management and those charge with governance:

Conduct ongoing and/or separate evaluations; and
Evaluate and communicate deficiencies

Answer 228

A

Elements of Internal Control: (CRIME)

• M = Monitoring
2 principles

management and those charge with governance:

Conduct ongoing and/or separate evaluations; and
Evaluate and communicate deficiencies

Answer 229

A

Elements of Internal Control: (CRIME)

• M = Monitoring
2 principles

management and those charge with governance:

Conduct ongoing and/or separate evaluations;

Answer 230

A

Elements of Internal Control: (CRIME)

• M = Monitoring
2 principles

management and those charge with governance:

Conduct ongoing and/or separate evaluations;

Answer 231

A

Elements of Internal Control: (CRIME)

• M = Monitoring
2 principles

management and those charge with governance:

Conduct ongoing and/or separate evaluations;

Answer 232

A

Elements of Internal Control: (CRIME)

• M = Monitoring
2 principles

management and those charge with governance:

Conduct ongoing and/or separate evaluations;

Answer 233

A

Elements of Internal Control: (CRIME)

• M = Monitoring
2 principles

management and those charge with governance:

Conduct ongoing and/or separate evaluations;

Answer 234

A

Elements of Internal Control: (CRIME)

• M = Monitoring
2 principles

management and those charge with governance:

Evaluate and communicate deficiencies

Answer 235

A

Elements of Internal Control: (CRIME)

• M = Monitoring
2 principles

management and those charge with governance:

Evaluate and communicate deficiencies

Answer 236

A

Elements of Internal Control: (CRIME)

• M = Monitoring
2 principles

management and those charge with governance:

Evaluate and communicate deficiencies

Answer 237

A

Elements of Internal Control: (CRIME)

• M = Monitoring
2 principles

management and those charge with governance:

Evaluate and communicate deficiencies

Answer 238

A

Elements of Internal Control: (CRIME)

• M = Monitoring
2 principles

management and those charge with governance:

Conduct ongoing and/or separate evaluations; and
Evaluate and communicate deficiencies

Answer 239

A

What does monitoring activities mean?

Monitoring activities are the means by which management determines if internal controls are being followed and if they are effective.

Answer 240

A

Management monitors internal controls to determine if the internal controls

1) are being followed
2) are effective

Monitoring activities are the means by which management determines if internal controls are being followed and if they are effective.

Answer 241

A

The auditor may use the work performed by the entity’s internal auditor’s either to

1) modify the nature, timing, or extent of other audit procedures to be performed,

or to

2) assist in the performance of audit procedures under the oversight of the auditor.

In some circumstances, the auditor may use the work performed by the entity’s internal auditor’s either to modify the nature, timing, or extent of other audit procedures to be performed, or to assist in the performance of audit procedures under the oversight of the auditor.

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AUD 3 Internal Control 8 Flashcards

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