Following is a list of internal controls. Select the COSO component that best matches each internal control. Internal control a. Implementation of policies to reduce risk of internal control failure. b. Reporting of internal control effectiveness to investors. c. Evaluation of internal control effectiveness by external auditors. d. Identification and management of risks. COSO Control activities Information & communication Monitoring Risk assessment Control environment

Following is a list of internal controls. Select the COSO component that best matches each internal control. Internal control a. Implementation of policies to reduce risk of internal control failure. b. Reporting of internal control effectiveness to investors. c. Evaluation of internal control effectiveness by external auditors. d. Identification and management of risks. COSO Control activities Information & communication Monitoring Risk assessment Control environment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: In terms of an audit, define " substantive strategy " and " reliance strategy ". How do the…

A: Audit strategy refers to a strategy that guides the audit plan. It refers to the combination of…

Q: Which of the following is a common monitoring control? Multiple Choice O audit committee inquiries…

A: Internal controls are the rules and procedures implemented by a company to ensure compliance with…

Q: Risk assessment procedures are performed by auditors to: a. detect material misstatements in the…

A: The risk assessment procedures include test of control, substantive procedures and assessment…

Q: In the consideration of internal control, the operating effectiveness of controls is tested by:…

A: internal controls - internal controls are the policies and procedures laid down by the management…

Q: Place the auditor's activities to assess control risk in the proper order: Group of answer choices…

A: Control risk refers to misstatement in financial statements that occur due to error and fraud and…

Q: COSO lists five components of internal control: control environment, risk assessment, control…

A: COSO: It is framework that defines the internal control of an organization as an entity formed by…

Q: When testing IT controls, which of the following BEST (select one) describes the IT auditor's focus:…

A: IT controls audit is the process of evaluating an organization's IT controls to determine their…

Q: When testing IT controls, which of the following BEST (select one) describes the IT auditor's…

A: IT controls audit is the process of evaluating an organization's IT controls to determine their…

Q: Which of the following is not a common procedure for assessing operating effectiveness of preventive…

A: Preventive controls is a measure of safeguards implemented by an organisation to proactively…

Q: Performance Principle. Identify how each of the following statements relates to the performance…

A: Performance Principle The guiding principle known as the performance principle defines the general…

Q: Using your selected objective, create an audit plan of the organization's financial statements that…

A: Audit planning is one of the basic principles for governing an audit.Auditor should plan his work to…

Q: When planning the audit of internal controls for an issuer, the audit team shoulda. Identify…

A: Internal control is a mechanism or procedure that the company implements so that the integrity of…

Q: Which capital budgeting technique measures all expected future cash inflows and outflows as if they…

A: Based on the cost of capital the net present value method discounts the future cash flows (both cash…

Q: IT auditors assist organizations by evaluating business and IT-related risks and the effectiveness…

A: Auditor is referred to that professional who is responsible to verify the financial statements of a…

Q: If control risk is assessed at the maximum, the auditor is required to obta knowledge about the:…

A: Lets understand the basics.Control risk is a risk which arise due to failing of control mechanism of…

Q: risk remaining after management’s actions is

A: Option A is wrong because inherent risk is the risk of fraud or error which may exist even if the…

Q: The internal audit risk assessment process:

A: It refers to the systematic and recurring process for evaluating and identifying events that affect…

Q: (ANSWER IN PARAGRAPH FORM) What are the most significant challenges that auditors face when…

A: For a variety of reasons, evaluating the effectiveness of internal controls involving information…

Q: Discuss the types of internal controls and explain how each is important to the auditing process.…

A: There are five primary types of internal controls that organizations use to manage risk and protect…

Question

Following is a list of internal controls. Select the COSO component that best matches each internal control.
Internal control
a. Implementation of policies to reduce risk of internal control failure.
b. Reporting of internal control effectiveness to investors.
c. Evaluation of internal control effectiveness by external auditors.
d. Identification and management of risks.
COSO
Control activities
Information & communication
Monitoring
Risk assessment
Control environment
Assessm

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Understanding of COSO framework

VIEW

Step 2: COSO component with valid reasons

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

one of the components of internal control is the control activities;which are the policies and procedures that help ensure that necessary actions are taken to address risks to the achievement of the entity objectives. what are the most important control activities (explain each of these control activities)?
Discuss and give examples of the various tools to document control risk assessment – such as narratives, flowcharts and checklists. Discuss the term audit programs – what are they and why are audit programs important to the audit process? Please provide references if there is any.
Discuss the auditor's risk assessment procedures for assessing control risk, and provide specific procedures related to understanding management's risk assessment component of internal control.
Audit teams use the test data method to gain certain assurances with respect toa. Input data.b. Machine capacity.c. Control procedures contained within the program.d. General controls
Is an organization’s internal audit function part of its system of internal controls? If your answer is yes, explain how the internal audit function can evaluate the design adequacy and operating effectiveness of internal controls and at the same time remain independent of the organization’s system of internal controls. If your answer is no, explain the internal audit function’s role relative to the organization’s system of internal controls.
Case Study: Enhancing Financial Integrity Through Comprehensive Auditing Practices Introduction: In the rapidly evolving landscape of business and finance, the role of auditing has become increasingly crucial. This case study delves into the scenario of a medium-sized manufacturing company, XYZ Manufacturing Inc., that has recognized the importance of auditing accounting practices to enhance financial integrity, compliance, and overall organizational effectiveness. Background: XYZ Manufacturing Inc. has been experiencing growth in its operations, expanding its product lines and market reach. With this growth, the company's management has identified the need for a robust auditing system to ensure accurate financial reporting, compliance with regulatory standards, and the detection of any potential irregularities. Auditing Objectives: The primary objectives of the auditing initiative at XYZ Manufacturing Inc. are as follows: Ensuring Financial Accuracy: The auditing process aims to…
Who has primary responsibility for overseeing the establishment, implementation, and evaluation of risk management and controls? I Operating managers. B) Internal auditors. External auditors. Senior management
Auditors must consider these five components of COSO internal controls when understanding the client and its internal controls Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a control environment, tone at the top, risk assessment, segregation of duties, monitoring b control environment, tone at the top, risk assessment, control activities, monitoring c control activities. control environment, risk assessment, info and communications, monitoring d control activities, control environment, monitoring, tone at the top, info and commumication
Which of the following are principles of internal control? (Check all that apply.) Multiple select question. Increase revenues. Establish responsibilities. Maintain adequate records. Reduce vendor payables. Perform regular and independent reviews. Divide responsibility for related transactions.
The Committee of Sponsoring Organizations of the Treadway Commission's (COSO's) Internal Control—Integrated Framework provides a model for organizations to design and implement an entity-wide system of controls. Which of the following BEST (select one) describes the purpose of the COSO model? a) To provide a tool to perform risk assessments b) To motivate employees to maintain a culture of compliance c) To provide auditors with a detailed work pogram to perform audits d) To provide a model to help organizations better design, implement, and assess internal contreol thereby supporting governance objectives
Study and Evaluation of Management Control. The study and evaluation of management risk mitigation control is not easy. First, auditors must determine the risks and the controls subject to audit. Then they must find a standard by which performance of the control can be evaluated. Next they must specify procedures to obtain the evidence on which an evaluationcan be based. Insofar as possible, the standards and related evidence must be quantified. The following description gives certain information (in italics) that internal auditors would know about or be able to determine on their own. Fulfilling the requirement thus amounts to taking some information from the scenario and figuring out other things by using accountants’ and auditors’ common sense.The ScenarioAce Corporation ships building materials to more than a thousand wholesale and retail customers in a five-state region. The company’s normal credit terms are net/30 days, and no cash discounts are offered. Fred Clark is the chief…
Auditors identify and assess the risk of material misstatement at these two levels Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Financial Statement level and Information Process Goals level b Financial statement level and Operations Process Goals level c Information Process Goals level and Operations process goals level d Financial Statement Level and Relevant Assertion Level