Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN: 9781305080577
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: South-Western College Pub
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Chapter 3, Problem 34MCQ
To determine
Introduction: Monitoring is a procedure that gives input on the adequacy of each of the five parts of inner control. The board chooses a blend of progressing assessments, separate assessments, or a blend of the two to achieve monitoring.
To choose: The correct option.
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Students have asked these similar questions
1. What are objectives? What three categories of objectives are set forth in the COSO framework?
2. What does the control environment comprise?
3. What are control activities? What types of control activities are present in a well-designed system of internal controls?
4. When are monitoring activities most effective? Who performs monitoring activities? What distinguishes separate evaluations from ongoing monitoring activities?
5. How does internal auditors' perspective of internal control differ from management's perspective?
6. How does COSO define risk? How does ISO define risk?
7. What are the five COSO ERM components? 8. How does COSO define risk appetite?
9. What are some ERM assurance activities the internal audit function may perform? What are some ERM consulting activities the internal audit function may perform if appropriate safeguards are implemented? What ERM activities should the internal audit function not perform?
10. What are COSO's five categories of risk…
Which option below accurately describes the process of continually assessing internal controls and transactions?
Multiple Choice
Continuous reporting.
О
Continuous monitoring.
The homogenous systems approach.
The heterogeneous systems approach.
This method of documenting understanding of internal control structure is advantageous because it serves as a checklist thereby preventing the likelihood of missing a significant area of the controls: *A. Internal control questionnaire methodB. Narrative memorandum methodC. Flowchart methodD. Decision tablesE. All of them
Chapter 3 Solutions
Auditing: A Risk Based-Approach to Conducting a Quality Audit
Ch. 3 - Prob. 1TFQCh. 3 - Prob. 2TFQCh. 3 - Prob. 3TFQCh. 3 - Prob. 4TFQCh. 3 - Prob. 5TFQCh. 3 - The control environment is seen as the foundation...Ch. 3 - Prob. 7TFQCh. 3 - Prob. 8TFQCh. 3 - Prob. 9TFQCh. 3 - Prob. 10TFQ
Ch. 3 - Prob. 11TFQCh. 3 - Prob. 12TFQCh. 3 - Prob. 13TFQCh. 3 - Prob. 14TFQCh. 3 - Prob. 15TFQCh. 3 - Prob. 16TFQCh. 3 - Prob. 17TFQCh. 3 - Prob. 18TFQCh. 3 - Prob. 19TFQCh. 3 - Prob. 20TFQCh. 3 - Prob. 21MCQCh. 3 - Prob. 22MCQCh. 3 - What are the components of internal control per...Ch. 3 - Prob. 24MCQCh. 3 - Prob. 25MCQCh. 3 - Which one of the following components of internal...Ch. 3 - Prob. 27MCQCh. 3 - Prob. 28MCQCh. 3 - Prob. 29MCQCh. 3 - Prob. 30MCQCh. 3 - Prob. 31MCQCh. 3 - Prob. 32MCQCh. 3 - Prob. 33MCQCh. 3 - Prob. 34MCQCh. 3 - Prob. 35MCQCh. 3 - Prob. 36MCQCh. 3 - Prob. 37MCQCh. 3 - Prob. 38MCQCh. 3 - Prob. 39MCQCh. 3 - Prob. 40MCQCh. 3 - Prob. 41RSCQCh. 3 - Prob. 42RSCQCh. 3 - Prob. 43RSCQCh. 3 - Prob. 44RSCQCh. 3 - Distinguish between entity-wide and transaction...Ch. 3 - Refer to Exhibit 3.2. List the principles...Ch. 3 - Prob. 47RSCQCh. 3 - Prob. 48RSCQCh. 3 - Prob. 49RSCQCh. 3 - Prob. 50RSCQCh. 3 - Refer to Exhibit 3.3. For each risk assessment...Ch. 3 - Prob. 52RSCQCh. 3 - Prob. 53RSCQCh. 3 - Prob. 54RSCQCh. 3 - Prob. 55RSCQCh. 3 - Prob. 56RSCQCh. 3 - Prob. 57RSCQCh. 3 - Prob. 58RSCQCh. 3 - Authorization of transactions is a key control in...Ch. 3 - Prob. 60RSCQCh. 3 - Prob. 61RSCQCh. 3 - Prob. 62RSCQCh. 3 - Prob. 63RSCQCh. 3 - Prob. 64RSCQCh. 3 - Prob. 65RSCQCh. 3 - Prob. 66RSCQCh. 3 - Prob. 67RSCQCh. 3 - Prob. 68RSCQCh. 3 - Refer to Exhibit 3.9. What are the important...Ch. 3 - Refer to Exhibit 3.10 and Exhibit 3.11. Describe...Ch. 3 - Prob. 71RSCQCh. 3 - Prob. 72RSCQCh. 3 - Prob. 73RSCQCh. 3 - Prob. 74RSCQCh. 3 - Assume that management is gathering evidence as...Ch. 3 - Prob. 76RSCQCh. 3 - Prob. 77RSCQCh. 3 - Prob. 78RSCQCh. 3 - Prob. 79FFCh. 3 - Diamond Foods, Inc. (LO 8, 9) In February 2012,...
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- Which of the following is NOT an SDLC controllable activity? a. External audit participation b. User specification c. Systems authorization d. User test and acceptance procedures e. All are SDLC controlsarrow_forwardFollowing 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 Assessmarrow_forwardIn the consideration of internal control, the operating effectiveness of controls is tested by: Flowcharts verification, Test of controls substantive procedures, or Decision tables, or neitherarrow_forward
- The internal audit function is part of what element of the internal control system? a.Risk assessment b.Control activities c.Control environment d.Monitoringarrow_forwardChoose the one correct answer. Internal control provides reasonable assurance means that ? internal control has its inherent limitations internal control is integrated in the various transaction cycles internal control involves every people in the organization evaluation of internal control is only a secondary objective of FS auditarrow_forwardIn terms of effectiveness and efficiency of operations, as well as of meeting the generic information system control goals of validity, completeness, and accuracy, what are the arguments for and against each of the following? a )Sending a copy of the PO from the purchasing department to the receiving department. b) Having the quantity ordered field “blinded” on the receiving department copy of the PO.arrow_forward
- Required: a. Create a document flowchart of the existing system. b. Analyze the internal control weaknesses in the system. Model your response according to the six categories of physical control activities specified in SAS 78. 1.Transaction Authorization 2.Segregation of Duties 3.Supervision 4.Accounting Records 5.Access Control 6.Independent Verificationarrow_forwardAudit procedures designed to evaluate the operating effectiveness of controls to prevent, detect, or correct material misstatements are known as organizational structure. O control testing. O commitment to competence. O management's philosophy and operating style.arrow_forward1. Standards requires auditors obtain an understanding of an organization’s control environment. Discuss two techniques that may be used to obtain such understanding. PLease answer this thank you:)arrow_forward
- ____________can be defined as a management process that monitors on an ongoing basis whether internal controls are operating effectively. a) Continous monitoring b) Computer assisted audit techniques c) Continuous auditing d) Applicaiton controlsarrow_forwardWhich of the following is not one of the elements of a good system of internal control? a.Control environment b.Analysis of control procedures c.Information and communication d.Risk assessmentarrow_forwardDescribe how the audit team assesses control risk in an IT environment.arrow_forward
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