Question

Which of the following is not an assurance to be provided by an effective internal control...

  1. Which of the following is not an assurance to be provided by an effective internal control system?
  1. Transactions are recorded to maintain accountability for assets.
  2. Access to assets is limited to members of management.
  3. Transactions are recorded to permit the preparation of reliable financial statements.
  4. Management is responsible for knowledge and authorization of transactions.
  1. Which of the following internal control is most likely relevant to an audit of financial statements?
  1. A bank’s loan approval process.
  2. A TV manufacturer’s computerized production scheduling system.
  3. A furniture manufacturer’s controls for incidental sales of scrap materials that accounts for less than 1% of total sales.
  4. An airline’s automated controls that maintain flight schedules.
  1. Which of the following elements is most likely to be a component of a direct reporting assurance engagement?
  1. Absolute assurance
  2. Auditor independence
  3. Low level of assurance
  4. A written independence

Homework Answers

Answer #1

1. C) Transactions are recorded to permit reliable financial statements is not related to effective internal control system.

Rest options are part of reliable internal control system

2. a) A bank's loan approval process internal control is related to audit of financial statements. as loan is related to financial statement item.

all other internal control mentioned in other options not related to financial statement item.

3. a) Absolute assurance is most likely to be component of direct reporting assurance engagement

other options are not most likely related to direct reporting assurance engagemenr

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
20) Which of the following is the best reason for management to emphasize fraud prevention and...
20) Which of the following is the best reason for management to emphasize fraud prevention and deterrence?         A) The AICPA requires management to implement a fraud prevention program. B) It is often more effective and economical for companies to focus on fraud prevention and deterrence rather than on fraud detection. C) Collusion is impossible to detect. D) All of the above are equally valid reasons. 21) Who is responsible for setting the "tone at the top"? A) SEC                                 B)...
The COSO study defines internal control in a way that controls should provide reasonable assurance that...
The COSO study defines internal control in a way that controls should provide reasonable assurance that objectives of the firm are achieved for each of the following Effectiveness and efficiency of operations. Reliability of financial reporting. Prevention of all fraudulent acts by employees or others. D) Compliance with applicable laws and regulations. Management's ability to monitor and control business operations is greatly improved with a computerized accounting system because of all but which one of the following? Computers provide more...
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?...
3.              Which of the following statements about understanding internal control is not true:                a. T
3.              Which of the following statements about understanding internal control is not true:                a. The auditor uses the knowledge of the system of internal control to design further audit procedures to collect evidence.                b. In the presence of a strong system of internal control, the auditor may choose to collect less evidence about transactions or balances.                c. In the audit of a private company, it is necessary to express an opinion on the system of internal control...
You are the internal audit senior responsible for conducting an assurance engagement of the XYZ Company payroll process.
You are the internal audit senior responsible for conducting an assurance engagement of the XYZ Company payroll process. This process has not been audited for three years and, as such, is due in the normal audit cycle. There have been no significant changes since the previous audit, that is, there were no system changes, no reorganization of personnel, and no substantive procedural changes. However, during the last assurance engagement, the internal audit function identified several observations, some of which were...
Discuss the accuracy of the following statements regarding internal control: The more computerized applications exist within...
Discuss the accuracy of the following statements regarding internal control: The more computerized applications exist within a company’s accounting system, the lower the risk will be that fraud or errors will occur. The more involved top management is in the day‐to‐day operations of the business, the lower the risk will be that fraud or errors will occur.
Question 12 (1 point) Regarding internal control in a technological environment, which group designs the information...
Question 12 (1 point) Regarding internal control in a technological environment, which group designs the information system? Question 12 options: Database administration Data control Systems analysis Telecommunications Question 13 (1 point) Which internal control document identifies employees and the tasks they perform in addition to how their duties are segregated? Question 13 options: Flowchart Internal control questionnaire Walk-through Written narrative Question 14 (1 point) Which of the following application control activities is concerned with input validation checks? Question 14 options:...
15. Which of the following is incorrect regarding control environment component of internal control? a.The foundation...
15. Which of the following is incorrect regarding control environment component of internal control? a.The foundation for the other components of internal control to function as control environment provides discipline and structure. b.To understand the control environment, the auditor considers programs and controls addressing fraud risk implemented by management and those charged with governance. c.The evaluation of the design of the control environment includes considering the seven elements of control environment. d.The absence of programs and controls addressing fraud risk...
35) Which is usually included in an engagement letter? A) The objectives of the engagement Identification...
35) Which is usually included in an engagement letter? A) The objectives of the engagement Identification of the financial reporting framework used by management Yes Yes B) The objectives of the engagement Identification of the financial reporting framework used by management No No C) The objectives of the engagement Identification of the financial reporting framework used by management No Yes D) The objectives of the engagement Identification of the financial reporting framework used by management Yes No 36) Which is...
QUESTION 31 The financial statements of an organization reflect a set of management assertions about the...
QUESTION 31 The financial statements of an organization reflect a set of management assertions about the financial health of the business. All of the following describe types of assertions except a. that all employees are properly trained to carry out their assigned duties b. that all of the assets and equities on the balance sheet exist c. that all transactions on the income statement actually occurred d. that all allocated amounts such as depreciation are calculated on a systematic and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT