Question 9To what does the following relate: As the business has grown and the number of transactions per day has multiplied, the financial accountant is very busy and constantly making errors 1.Control activities – Independent checks and reconciliations 2.Inherent limitations – cost vs benefit 3.Inherent limitations – human error, time constraints 4.Monitoring of controlsQuestion 10To what does the following relate: Entry to and exit from the warehouse are monitored 24 hours a day by surveillance cameras 1.Control environment 2.Monitoring of controls 3.Validity of transactions 4.Control activities – Access controlsQuestion 11To what does the following relate: Regular stock counts are performed, and the actual count compared to the inventory on the system 1.Control activities – documentation and records 2.Validity of transactions 3.Control activities – independent checks and reconciliations 4.Inherent limitations – cost vs benefitQuestion 12Which type of risk relates to the exposure of the business to factors that threaten its ability to achieve its goals and objectives? 1.Inherent risk 2.Business risk 3.Audit risk 4.Detection riskQuestion 13Which one of the following is incorrect? Internal control is a process that is designed, implemented, and maintained by those charged with governance, management, and other personnel in the entity, to provide reasonable assurance about the achievement of the objectives with regards to: 1.Reliability of financial reporting 2.Effectiveness and efficiency of operations 3.Validity of transactions 4.Compliance with laws and regulationsQuestion 14The audit risk is made up of three components: inherent risk; control risk; and detection risk. Which one of these risks is influenced by factors such as complexity of transactions, information systems, management incentives etc? 1.Inherent risk 2.Detection risk 3.Control risk 4.Audit riskQuestion 15Incompetence of management and poor oversite by the board of directors can increase the risk of material misstatement at which level? 1.Financial statement level 2.Assertion level 3.Control activity level 4.Detection level

Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Answered: Question 9 To what does the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Question 9

To what does the following relate: As the business has grown and the number of transactions per day has multiplied, the financial accountant is very busy and constantly making errors

	1.	Control activities – Independent checks and reconciliations
	2.	Inherent limitations – cost vs benefit
	3.	Inherent limitations – human error, time constraints
	4.	Monitoring of controls

Question 10

To what does the following relate: Entry to and exit from the warehouse are monitored 24 hours a day by surveillance cameras

	1.	Control environment
	2.	Monitoring of controls
	3.	Validity of transactions
	4.	Control activities – Access controls

Question 11

To what does the following relate: Regular stock counts are performed, and the actual count compared to the inventory on the system

	1.	Control activities – documentation and records
	2.	Validity of transactions
	3.	Control activities – independent checks and reconciliations
	4.	Inherent limitations – cost vs benefit

Question 12

Which type of risk relates to the exposure of the business to factors that threaten its ability to achieve its goals and objectives?

	1.	Inherent risk
	2.	Business risk
	3.	Audit risk
	4.	Detection risk

Question 13

Which one of the following is incorrect? Internal control is a process that is designed, implemented, and maintained by those charged with governance, management, and other personnel in the entity, to provide reasonable assurance about the achievement of the objectives with regards to:

	1.	Reliability of financial reporting
	2.	Effectiveness and efficiency of operations
	3.	Validity of transactions
	4.	Compliance with laws and regulations

Question 14

The audit risk is made up of three components: inherent risk; control risk; and detection risk. Which one of these risks is influenced by factors such as complexity of transactions, information systems, management incentives etc?

	1.	Inherent risk
	2.	Detection risk
	3.	Control risk
	4.	Audit risk

Question 15

Incompetence of management and poor oversite by the board of directors can increase the risk of material misstatement at which level?

	1.	Financial statement level
	2.	Assertion level
	3.	Control activity level
	4.	Detection level

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here