1. What is the primary reason that auditors’ assess internal control? a)To determine the risk of misstatements of accounts. b)To make recommendations for improvements in controls. c)To determine the nature of various accounts. d)To find misstatements in accounts. 2. Tests of controls are designed to determine all of the following, except: a)How consistent the control was applied. b)Whether or not the control was overridden. c)How a control was applied. d)By what means the control was applied. 3. All of the following are possible responses to a pervasive weakness in internal control except: a)Increase the size of a sample for certain tests in the engagement. b)Adding an element of unpredictability to the procedures performed. c)Increasing the level of supervision on the engagement. d)Assign more experienced personnel to the engagement. 4. Which of the following is not a COSO component of internal control? a)Board oversight. b)Control activities. c)Risk assessment. d)Control environment. 5. Performance reviews are an integral part of which component of internal control? a)Control activities. b)Control environment. c)Monitoring. d)Risk assessment. 6. Which of the following is not a limitation of internal control? a)Transaction controls. b)Errors in judgment. c)Management override.
1. What is the primary reason that auditors’ assess internal control?
a)To determine the risk of misstatements of accounts.
b)To make recommendations for improvements in controls.
c)To determine the nature of various accounts.
d)To find misstatements in accounts.
2. Tests of controls are designed to determine all of the following, except:
a)How consistent the control was applied.
b)Whether or not the control was overridden.
c)How a control was applied.
d)By what means the control was applied.
3. All of the following are possible responses to a pervasive weakness in internal control except:
a)Increase the size of a sample for certain tests in the engagement.
b)Adding an element of unpredictability to the procedures performed.
c)Increasing the level of supervision on the engagement.
d)Assign more experienced personnel to the engagement.
4. Which of the following is not a COSO component of internal control?
a)Board oversight.
b)Control activities.
c)Risk assessment.
d)Control environment.
5. Performance reviews are an integral part of which component of internal control?
a)Control activities.
b)Control environment.
c)Monitoring.
d)Risk assessment.
6. Which of the following is not a limitation of internal control?
a)Transaction controls.
b)Errors in judgment.
c)Management override.
d)Collusion.
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