Internal Control (M40) Flashcards
The following relates to which component of internal control:
Capturing both internal and external sources of data
Information & Communication
The following relates to which component of internal control:
The development of channels for communication from external stakeholders
Information & Communication
The following relates to which component of internal control:
A whistle-blower hotline
Information & Communication
The following relates to which component of internal control:
Assessment of information about fraud
Risk Assessment Component
According to the COSO framework, what characteristics are required of an evaluator that monitors controls within an organization?
Competence
Objectivity
The following is part of:
a) General Control Activities
b) Transaction Control Activities
Technology Development Policies & Procedures
A
The following is part of:
a) General Control Activities
b) Transaction Control Activities
Reconciliations
B
The following is part of:
a) General Control Activities
b) Transaction Control Activities
Physical Controls over Assets
B
The following is part of:
a) General Control Activities
b) Transaction Control Activities
Controls over Standing Data
B
The following is part of:
a) Control Baseline Stage
b) Change Identification Stage
c) Change Management Stage
d) Control Revalidation/Update Stage
Evaluating the design and implementation of changes and establishing a new baseline
C
The following is part of:
a) Control Baseline Stage
b) Change Identification Stage
c) Change Management Stage
d) Control Revalidation/Update Stage
Developing the initial understanding of the control system
A
The following is part of:
a) Control Baseline Stage
b) Change Identification Stage
c) Change Management Stage
d) Control Revalidation/Update Stage
Identifying necessary changes
B
The following is part of:
a) Control Baseline Stage
b) Change Identification Stage
c) Change Management Stage
d) Control Revalidation/Update Stage
Revalidating the understanding of controls periodically
D
T/F
Section 404 of SOX requires a statement of management’s responsibility for establishing and maintaining adequate internal control over financial reporting
TRUE
T/F
Section 404 of SOX requires a statement indicating that the board of directors has approved the system of internal control over financial reporting
FALSE
