Two examples of internal controls operated at Fairweather Co include the financialaccountant signing the bank reconciliation (which had been prepared by a member of hisstaff) and the finance director comparing monthly expenditure on consumables to budgetedexpenditure.Control activities include:(1) Authorisation(2) Performance reviews(3) Information processing(4) Physical controls(5) Segregation of dutiesWhat TWO control activities do the examples at Fairweather Co illustrate?
参考答案(由小熊题库网聘请的专业题库老师提供的解答)
请点击↑↑↑ 查看官方参考答案 按钮
习题解析
请点击 查看官方参考答案 按钮
您可能感兴趣的题目
1 .The following statements have been made about logical access controls:(1) Their primary purpose is to stop unauthorised access to the data and software in asystem.(2) They include the use of passwords.(3) It is never possible for logical access controls to stop all unauthorised attempts toaccess confidential data.Which of the statements above are true?
A 1 and 2 B 1 and 3 C 2 and 3 D All of the above
2 .可以直接修改他人填制而未被审核的凭证。（ ）
Y 对 N 错
3 .Which TWO of the following are reasons why organisations need to have effectivesystems of control?(1) Managing going concern risk(2) Maximising its profitability(3) Managing its assets and liabilities(4) Cutting down the time needed for the audit(5) Complying with laws and regulations
A 2 and 3 B 1 and 3 C 1 and 5 D 4 and 5
4 .An effective system of internal control requires segregation of basic functions (segregation ofduties).Which THREE of the following functions should ideally be segregated?(1) Authorisation of transactions(2) Preparation of financial statements(3) Custody or handling of assets(4) Budgetary control(5) Recording of transactions
A 1, 3 and 5 B 1, 2 and 3 C 1, 2 and 5 D 3, 4 and 5
5 .ISA 315 Identifying and Assessing the Risks of Material Misstatement through Understandingthe Entity and Its Environment states that an internal control system in an organisationconsists of five components: the control environment, the entity’s risk assessment process, theinformation system, control activities and monitoring of controls.Which component would include the review by a senior financial manager of monthlybank reconciliations produced by her assistant?
A Control environment B Control activity C Monitoring of controls
7 .The auditor’s preliminary evaluation of the internal control system of a company is that it iseffective in ensuring the completeness and accuracy of the accounting records because thecompany has implemented multiple controls, including good segregation of duties. However,the auditor is aware that the effectiveness of the company’s internal controls is limited by thepossibility of collusion.What level of reliance on internal controls and what types and extent of testing wouldthe auditor normally plan to carry out?
A Level of reliance on controls is low;Extent of tests of control is nil;Extent of substantive procedures is extensive. B Level of reliance on controls is moderate;Extent of tests of control is reduced;Extent of substantive procedures is reduced. C Level of reliance on controls is high;Extent of tes...
8 .Which of the following statements is FALSE?
A Materiality depends on the monetary amount of an item B Materiality may depend on either the nature of an item or its monetary amount C Materiality is a matter of professional judgment
9 .The external auditor of Aaron Co has set a planning materiality threshold of $40,000 and aperformance materiality of $30,000. The audit testing approach to the following financialstatement items is being considered:(1) Harry, a director of Aaron Co, owes $1,000 to the company (borrowed during the year).(2) Sundry income of $35,000Which of the two items should be tested?
A Neither 1 nor 2 B Both 1 and 2 C 1 only D 2 only
10 .As an audit team member with two years of experience, you were assigned to carry out asubstantive test on directors’ expenses. The result of the test showed that in several casesinvolving the same director, the Chief Financial Officer (CFO) had authorised the overpayment of his expenses. Each expense item was less than the performance materiality level.What action should be taken?
A Draw conclusion B Discuss with a senior member of the audit team C Extend sample D Discuss with the CFO
