Which of the following is more likely to occur when an entity has effective internal controls? Select allthat apply.unreliable financial reportingO effectiveness of operationsO compliance with lawsO achieve strategic objectivesO achieve operating objectives

Name: Which of the following is more likely to occur when an entity has eff
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Description: Which of the following is more likely to occur when an entity has effective internal controls? Select allthat apply.unreliable financial reportingO effectiveness of operationsO compliance with lawsO achieve strategic objectivesO achieve operating ob

Internal control means the mechanisms, rules, procedures etc. which are implemented by a company to…

Business

Accounting

Which of the following is more likely to occur when an entity has effective internal controls? Select all that apply. O unreliable financial reporting O effectiveness of operations O compliance with laws O achieve strategic objectives O achieve operating objectives

Which of the following is more likely to occur when an entity has effective internal controls? Select all that apply. O unreliable financial reporting O effectiveness of operations O compliance with laws O achieve strategic objectives O achieve operating objectives

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 2CYBK

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Which of the following are affected by the quality of an organization’s internal controls? a. Reliability of financial data. b. Ability of management to make informed business decisions. c. Ability of the organization to remain ¡n business. d. All of the above. e. Only a and c.
Which one of the following components of internal control over financial reporting sets the tone for the organization? a. Risk assessment. b. Control environment. c. Information and communication. d. Monitoring.
Entity-level controls can have a pervasive effect on the entity's ability to meet the control criteria. Which one of the following is not an entity-level control? A. The period-end financial reporting process B. Controls to monitor results of the operations C. Controls to monitor the inventory taking process D. Management's risk assessment process
What are analytical procedures? Substantive tests designed to assess control risk Substantive tests designed to evaluate the validity of management’s representation letter Substantive tests designed to study relationships between financial and non-financial data All of the above
Which of the following is desirable in a good system of internal accounting controls? Select one: O O O a. Develop plans and budgets b. Encourage employee collusion c. Maintain adequate accounting records d. Two of the above e. None of the above
Determine whether statement 1 and 2 are true or false 5. S1 -Objectives are the overall plans for the entity, while strategies are the operational approaches by which managements intends to achieve its objectives S2- Not all controls are relevant to the auditor’s risk assessment a. False, False b. True, False c. False, True d. True, True
Which of the following is a benefit of providing financial information? O Auditing. O Potential litigation. O Disclosure to competition. O Improved allocation of resources.
1. Explain the quantitative threshold of a reportable operating segment. 2. Differentiate management control from joint control. 3. When does an activity be part of related party transaction? 4. In case of erroneous recording or omission of reportable segments , how does it affect the financial position and financial operation. 5. What is the general purpose of financial disclosures of financial statements?
Which of the following does not describe a management control system? A. establishes a companys strategic goals B. implements a companys strategic goals C. monitors a companys strategic goals D. a system that only measures profitability
Which management assertion addresses whether the components of the financial statements arc properly classified, described, and disclosed? a. Completeness. b. Existence. c. Rights and obligations. d. Presentation and disclosure. c. None of the above address whether the components of the financial statements arc properly classified, described, and disclosed.
Which of the following is not considered to be part of the internal control structure of a company? A. Ensure that assets are kept secure. B. Monitor operations of the organization to ensure maximum efficiency. C. Publish accurate financial statements on a regular basis. D. Ensure assets are properly used.
Refer to Exhibit 3.10 and Exhibit 3.11. Describe management’s process for evaluating internal control over financial reporting. For the control environment principles, identify evidence that management might obtain to assess the operating effectiveness of the control environment.