Question

TO-DO LIST QUESTIONS 1.In a well designed internal control system which of the following is an...

TO-DO LIST QUESTIONS

1.In a well designed internal control system which of the following is an example of general authorization?

A. acceptance of special orders
B Granting of credit
C. Two signatures on large denominated checks

D.All of the above are examples of specific authorization circumstances

2.As an in-charge auditor you are reviewing a communication about reportable conditions related to internal control over cash receipts and disbursements. Which of the following conditions, standing alone, should cause you the most concern?

A.Checks are signed by only one person
B. Supporting documentation is reviewed by the person signing the checks
C. Distribution of payroll checks is performed by the person that signs the checks

D.None of the above would cause an auditor concern

3.Which of the following is the greatest limitation of internal control?

A Cost/benefit constraint
B.The human factor
C.Separation of management from owners

D.Lack of audit trail

4.Which of the following would an auditor likely review first when developing an understanding of the internal control system?

A. Control activities
B. Monitoring
C Control environment
D Risk assessment

Homework Answers

Answer #1

1.In a well designed internal control system which of the following is an example of general authorization?

D.All of the above are examples of specific authorization circumstances

2.As an in-charge auditor you are reviewing a communication about reportable conditions related to internal control over cash receipts and disbursements. Which of the following conditions, standing alone, should cause you the most concern?

B. Supporting documentation is reviewed by the person signing the checks

Segregation of control is not present

3.Which of the following is the greatest limitation of internal control?

B.The human factor

4.Which of the following would an auditor likely review first when developing an understanding of the internal control system?

C Control environment

The order goes as follows as per COBIT 5:

Control Environment

Risk Assessment

Control Activities

Communication

Monitoring

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