Practice Quiz 2
Question 1
1. Smaller entities are best able to overcome their absence of safeguards by:
implementing a strict segregation of duties policy
creating an audit committee
removing authority from the owner/manager
developing a culture that emphasizes integrity, ethical values and competence
1 points
Question 2
1. An auditor will use the test data method in order to gain certain assurances with respect to the Ð
input data
machine capacity
procedures contained within the program
degree of keying accurach
1 points
Question 3
1. ASA 315.A51 (ISA 315.A51) Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment includes all of the following as components of internal control except:
control environment
risk assessment
information system
legal environment
1 points
Question 4
1. Which of the following is NOT correct about factors relevant to the auditor's judgement about whether a control, individually, or in combination with others, is relevant to the audit?
materiality
size of the entity
diverse and complex operations
the governing board is greater than 5
1 points
Question 5
1. Purchase orders become part of the transaction trail of documentary evidence that directly supports which assertion for purchase transactions?
existence and occurrence
rights and obligations
accuracy and valuation
presentation and disclosure
1 points
Question 6
1. IT poses specific risks to an entity's internal control, including:
Reliance on systems or programs that are inaccurately processing data
Reliance on systems or programs that are processing inaccurate data
Unauthorised access to data may result in destruction of data or improper changes to data
all of the above
1 points
Question 7
1. Which of these is not an inherent limitation of an internal control structure?
mistakes in judgement
collusion
management override
accounting
1. Smaller entities are best able to overcome their absence of safeguards by:
implementing a strict segregation of duties policy
creating an audit committee
removing authority from the owner/manager
developing a culture that emphasizes integrity, ethical values and competence
1 points
Question 2
1. An auditor will use the test data method in order to gain certain assurances with respect to the Ð
input data
machine capacity
procedures contained within the program
degree of keying accurach
1 points
Question 3
1. ASA 315.A51 (ISA 315.A51) Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment includes all of the following as components of internal control except:
control environment
risk assessment
information system
legal environment
1 points
Question 4
1. Which of the following is NOT correct about factors relevant to the auditor's judgement about whether a control, individually, or in combination with others, is relevant to the audit?
materiality
size of the entity
diverse and complex operations
the governing board is greater than 5
1 points
Question 5
1. Purchase orders become part of the transaction trail of documentary evidence that directly supports which assertion for purchase transactions?
existence and occurrence
rights and obligations
accuracy and valuation
presentation and disclosure
1 points
Question 6
1. IT poses specific risks to an entity's internal control, including:
Reliance on systems or programs that are inaccurately processing data
Reliance on systems or programs that are processing inaccurate data
Unauthorised access to data may result in destruction of data or improper changes to data
all of the above
1 points
Question 7
1. Which of these is not an inherent limitation of an internal control structure?
mistakes in judgement
collusion
management override
accounting