Audits

Question 1

Segregation of job duties falls under what audit component?

Answer 1

Internal control system

Question 2

What is the purpose of segregating job duties?

Answer 2

To minimize the opportunity for a single employee to control an end to end process, thereby minimizing risk of fraud or embezzlement

Question 3

Balancing and reconciliation is a component of

Answer 3

Internal controls

Question 4

What does SAS 70 stand for?

Answer 4

Statement of accounting standards #70

Question 5

What is SAS 70 used to comply with?

Answer 5

SOX

Question 6

SAS 70 has been replaced by what ?

Answer 6

SSAE 16

Question 7

SSAE 16 is also referred to as

Answer 7

SOC 1 audit report

Question 8

What is the purpose of SSAE 16/ SOC 1?

Answer 8

To help comply with SOC requirements, to show effective internal controls covering financial reporting

Question 9

What is a phantom employee?

Answer 9

A fraudulently created individual whom accesses the payroll system for the purpose of creating a paycheck that can be claimed and cashed by a 3rd party

Question 10

A commercial agreement negotiated between management (on behalf of the company) and trade unions (employees) is known as

Answer 10

Collective bargaining agreement