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Online Quizzes
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1

Which of the following is a requirement of management of a public company relating to internal control?
A)Accept responsibility for the effectiveness of internal control.
B)Evaluate the effectiveness of internal control using a written assertion.
C)Prepare a detailed flowchart which summarizes the company's internal control.
D)Provide a monthly-updated report on internal control.
2

The definition of which type of control deficiency explicitly includes an amount that is more than inconsequential?
A)Material weakness.
B)Reportable condition.
C)Significant deficiency.
D)Strong control deficiency.
3

Which of the following terms includes the concept of at least a probable likelihood of occurrence?
A)Material Weakness--Yes; Reportable Condition--Yes
B)Material Weakness--Yes; Reportable Condition--No
C)Material Weakness--No; Reportable Condition--Yes
D)Material Weakness--No; Reportable Condition--No
4

A procedure that involves tracing a transaction from its origination through the company's information systems is referred to as a(n)
A)Inquiry/analysis approach.
B)Re-analysis approach.
C)Remediation.
D)Walkthrough.
5

Which of the following is least likely to be considered a "relevant financial statement assertion"?
A)Completeness.
B)Evidence.
C)Presentation.
D)Valuation.
6

When performing an audit of internal control for a public company, the auditors will consider which of the following types of controls?
A)Preventive--Yes; Detective--Yes
B)Preventive--Yes; Detective--No
C)Preventive--No; Detective--Yes
D)Preventive--No; Detective--No
7

Which is correct concerning the auditors' use of the work of others in an audit of internal control performed for a public company?
A)It is not allowed.
B)The work of internal auditors may be used, but only when those internal auditors report directly to the audit committee.
C)The work of internal auditors and others may be used primarily for low-risk, routine type transactions.
D)There is no limitation on use, but the auditors must be willing to assume responsibility for that work.
8

Which of the following is not a strong indicator of the existence of a material weakness in internal control?
A)An ineffective control environment.
B)An ineffective internal audit function.
C)Inadequate controls over the selection of the best investment opportunities.
D)Ineffective oversight of external reporting by the audit committee.
9

When performing an integrated audit under requirements of the Public Company Accounting Oversight Board, which of the following are acceptable presentation formats concerning reports on internal control and on the financial statements?
A)Separate reports--Yes; One combined report--Yes
B)Separate reports--Yes; One combined report--No
C)Separate reports--No; One combined report--Yes
D)Separate reports--No; One combined report--No
10

A control that reduces the risk that an existing or potential control weakness will result in a failure to meet a control objective is referred to as a:
A)Compensating control.
B)Conditional control.
C)Nonroutine control.
D)Walkthrough control.





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