ACC 403 Quiz 5
This quiz consists of 30 multiple choice questions. The first 15 questions cover the material in Chapter 10. The second 15 questions cover the material in Chapter 11.
Management must disclose material weaknesses in internal control in its audit report:
Reasonable assurance allows for:
Audit evidence regarding the separation of duties is normally best obtained by
Which of the following components of the control environment define the existing lines of responsibility and authority?
Internal controls normally include procedures designed to provide reasonable assurance that:
When considering internal controls, an important point to consider is that:
Which of management's assertions with respect to implementing internal controls is the auditor primarily concerned?
Which of the following deficiency exists if a necessary control is missing or not properly formulated?
The auditors primary purpose in auditing the client's system of internal control over financial reporting is:
When assessing whether the financial statements are auditable, the auditor must consider:
Which of the following activities would be least likely to strengthen a company's internal control?
An audit procedure that would most likely be used by an auditor in performing tests of control procedures in which the segregation of functions and that leaves no "audit" trail is:
Two key concepts that underlie management's design and implementation of internal control are:
Narratives, flowcharts, and internal control questionnaires are three common methods of:
Which of the following is a factor that relates to incentives or pressures to commit fraudulent financial reporting?
Who is most likely to perpetrate fraudulent financial reporting?
When dealing with revenue frauds:
Which of the following best defines fraud in a financial statement auditing context?
Which party has the primary responsibility to oversee an organization's financial reporting and internal control process?
Financial statement manipulation risk is arguably present for all companies' financial statements. However, the risk is elevated for companies that:
When analyzing accounts for fraud risk:
Which of the following would the auditor be most concerned about regarding a heightened risk of intentional misstatement?
In the fraud triangle, fraudulent financial reporting and misappropriation of assets:
________ is fraud that involves theft of an entity's assets.
Most cases of fraudulent reporting involve:
Which of the following is a factor that relates to incentives to misappropriate assets?
Two of the most useful warning signals that can indicate that revenue fraud is occurring are:
A company is concerned with the theft of cash after the sale has been recorded. One way in which fraudsters conceal the theft is by a process called "lapping." Which