quiz 9 kathrine

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01/12/2023, 22:54 Dashboard / / ACACT304A (S2 23) Audit and Assurance Student Multi-Groups (7954) / Week @ / Moodle Quiz - Internal control and control risk Co Question 1 Correct Moadle Quiz - Internal control and control risk: Attempt review My courses / Bachelor of Applied Commerce / 2023 / Year3 / S2 2023 Startedon Monday, 25 September 2023, 11:26 PM State Finished mpleted on Monday, 25 September 2023, 11:54 PM Time taken 28 mins 43 secs Grade 8.00 out of 10.00 (80%0) Mark 100 oLt of 100 The purpose of controls is to: Select one: a b. Question 2 Correct Support automated parts of a business in the functioning of the controls Detect misstotements in the financial statements Prevent misstatements in the financial statements All of these options Mark 1.00 oLt of 100 What is the best way for an auditor to obtain evidence about the controls with respect to “segregation of duties”? Select one: a. b. Re-perform the task Discuss the performance of duties within the company with the internal auditor Observe staff performing their duties Inspect documents and records to ensure an independent check has been performed https.//courses.highered.tafensw.edu.au/mod/quiz/review.php?attempt=146553&cmid=837350 114

01/12/2023, 22:54 Moadle Quiz - Internal control and control risk: Attempt review Question 3 Correct Mark 1.00 out of 100 Detect controls do NOT include: Select one: 0. Reconciliations b. Account coding v c. Management level reviews d. Performance indicators Question 4 Correct Mark 1.00 oLt of 100 What would be an appropriate sample of invoices to gain reasonable assurance that all payments dre properly authorised as part of the annual audit? Select one: a. Any of these tests would be acceptable b. Randomly choose one month and select every invoice for that month c. Select dllinvoices greater than $5,000 generated throughout the year d. Randomly select a sample of 100 invoices from throughout the year v Question 5 Incorrect Mark 0.00 out of 1.00 Which of the following would NOT require the auditor to increase the level of control testing for a particular control? Select one: 0. Alow degree of reliance s to be placed on the control to limit the amount of substantive testing required x b. Thecontrol is performed daily instead on monthly c. The risk of a material misstatement addressed by the control is very important d. There is one control relating to a particular audit objective https.//courses.highered.tafensw.edu.au/mod/quiz/review.php?attempt=146553&cmid=837350 2/4

01/12/2023, 22:54 Moadle Quiz - Internal control and control risk: Attempt review Question 6 Incorrect Mark 0.00 out of 1.00 Which of the following statements best describes the relotionship between the required understanding of the internal control structure and the preliminary audit strategy? Select one: a. Normally, greater understanding is required when the lower assessed level of control risk approach is adopted b. No understanding is required in the planning stage unless tests of controls are o planned part of the strategy c. Normally, less understanding is required when the lower assessed level of control risk approach is adopted d. Normally, greater understanding is requircd when the primarily substantive approach is adopted x Question 7 Correct Mark 1.00 oLt of 100 Inspection of physical evidence is a control test used by auditors. It: Select one: a. Isreliant of questioning skills b. Requires the auditor to re-perform the control c. Relies on testing the physical evidence v o Is subject to a limitation because employees may be more diligent when they know they are being observed Question 8 Corrcct Mark 100 oLt of 100 A major change to the accounting system takes place during the year. The effect on control testing would be that the auditor: Select one: a. Willnot conduct controls testing because the client has clearly given thought to ensuring the new system works well b. Canassume the system change was necessary and has improved the client’s controls, so should only test the period prior to the change c. Canaossume the system change was necessary and has improved the client’s controls, so should only test the period following the change d. Should ensure controls testing is performed for periods both before and after the change became effective v https.//courses.highered.tafensw.edu.au/mod/quiz/review.php?attempt=146553&cmid=837350 3/4

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01/12/2023, 22:54 Moadle Quiz - Internal control and control risk: Attempt review Question 9 Correct Mark 1.00 out of 100 Which of the following statements is correct with respect to how control risk should be documented in the audit working papers? Select one: a. Where control risk is assessed as high, only this conclusion needs to be documented D. Where control risk is assessed as less than high, the basis for this assessment must be documented c. Commonly control risk is documented in memo form arranged by financial statement ossertion d. Allof these options v Question 10 Correct Mark 1.00 oLt of 100 Which of the following would be a test of controls relating to sales? Select one: 0. Checking sales orders to ensure orders over d certain value have been authorised by the credit controller v b. Checking that the cash received in the bank account agrees with the correct sales ledger account c. Checking that the balance on the list of debtors agrees with the sales ledger control account o Checking that details on a sales invoice agree with the goods despatch note <« Week 9 Lecture Slides (Chapter 10) Jump te.. Week 10 Lecture Slides (Chapter 1) » https.//courses.highered.tafensw.edu.au/mod/quiz/review.php?attempt=146553&cmid=837350 4/4