Quiz
Chapters 6&7
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Questions in this quiz (11)
1ICFR is defined as a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP. Which of the following do not pertain to the controls?
- APertain to the maintenance of records that fairly reflect the transactions and dispositions of the assets of the company
- BProvide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's asset
- CProvide reasonable assurance that transactions are recorded in accordance with GAAP
- DProvide reasonable assurance that transaction are in accordance with GAAS standards
2A design deficiency is a properly designed control that does not operate as designed or the person performing the control does not possess the necessary authority or qualifications to perform the control effectively
- ATrue
- BFalse
3Design deficiency include all of the following:
- Acontrol necessary to meet relevant control objectives is missing
- Beven if operating is designed, control objective is not met
- Cperson performing control does not possess the necessary authority or qualifications to perform activity
4A [blank_start]significant deficiency[blank_end] is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of the company's financial reporting
- Asignificant deficiency
5The likelihood that __________ is greater than remote, but less than reasonably possible. More than not material or significant, but less than material
- AMaterial Weakness
- BSignificant deficiency
- Ccontrol deficiency
6What makes up the assurance bucket?
- Asubstantive analytical procedures
- Bremaining assurance needed from tests of details
- Canalyzing deficiencies
- Dtests of controls
- Erisk assessment procedures
7An adverse opinion did not maintain effective internal controls and there was at least one material weakness
- ATrue
- BFalse
8The types of audit opinions for ICFR
- AUnqualified
- Bqualified
- Cadverse
- Dno opinion
9The components of internal control according to the COSO framework are (from top to bottom):
- Ainformation and communication
control activities
control environment
risk assessment
monitoring activities - Brisk assessment
information and communication
control environment
monitoring activities
control activities - Ccontrol environment
risk assessment
control activities
information and communication
monitoring activities
- Ainformation and communication
10An auditor would choose substantive strategy and set control risk at maximum because controls do not pertain to an assertion, controls are assessed as ineffective testing the effectiveness of controls in inefficient
- ATrue
- BFalse
11Limitations of internal control include all of the following except:
- Asystem crashes
- Boverride by management
- Ccollusion
- Dhuman error of mistakes
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- Quiz on Chapters 6&7, created by ahercher on 15/12/2015.
- Author
- ahercher
- Language
- English
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