Question

Auditors need to know the terms regarding their internal control examination of an organization.

It is requested:

For each term, select the category that clearly defines it or that includes it. Categories can be chosen once, more than once or none at all.

Term:

1. Accounting information system.

2. Control environment

3. Flow diagram

4. Operational efficiency controls

5. Significant deficiency in the design of internal control

6. Monitoring

7. Questionnaire

8. Review

9. Very significant deficiency in the design of internal control

10. Reasonable security

Category:

a) Generally without interest for auditors

b) Control status

c) Component of internal control

d) Documentation

e) Put into operation

f) Material weaknesses

g) Control tests

h) Reportable status

i) Relationship between costs and benefits

Answer 1

1. Accounting information system - Component of internal control

2. Control environment - Relationship between costs and benefits

3. Flow diagram - Documentation

4. Operational efficiency control - Control tests

5. Significant deficiency in the design of internal control - Material weaknesses

6. Monitoring - Control tests

7. Questionnaire - Documentation

8. Review - Reportable status

9. Very significant deficiency in the internal control - Material weaknesses

10. Reasonable security - Component of internal control