ACC/403 ACC403 ACC 403 WEEK 7 QUIZ

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:

Sarbanes-Oxley requires management to issue an internal control report that includes two specific items. Which of the following is one of these two requirements?

Which of the following components of the control environment define the existing lines of responsibility and authority?

The auditors primary purpose in auditing the client's system of internal control over financial reporting is:

Which of the following is responsible for establishing a private company's internal control?

When one material weakness is present at the end of the year, management of a public company must conclude that internal control over financial reporting is:

Which of the following is not one of the three primary objectives of effective internal control?

A five-step approach can be used to identify deficiencies, significant deficiencies, and material weaknesses. The first step in this approach is:

When considering internal controls, an important point to consider is that:

The employee in charge of authorizing credit to the company's customers does not fully understand the concept of credit risk. This lack of knowledge would constitute:

When the auditor attempts to understand the operation of the accounting system by tracing a few transactions through the accounting system, the auditor is said to be:

Two key concepts that underlie management's design and implementation of internal control are:

Proper segregation of functional responsibilities calls for separation of:

Management must disclose material weaknesses in internal control in its audit report:

Which of management's assertions with respect to implementing internal controls is the auditor primarily concerned?

Fraud awareness training should be:

Which of the following best defines fraud in a financial statement auditing context?

Which of the following would the auditor be most concerned about regarding a heightened risk of intentional misstatement?

Which of the following is a factor that relates to attitudes or rationalization to commit fraudulent financial reporting?

When assessing the risk for fraud, the auditor must be cognizant of the fact that:

Which of the following questions is the auditor not required to ask company management when assessing fraud risk?

Who is most likely to perpetrate fraudulent financial reporting?

Fictitious revenues:

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 of the following best describes lapping?

Which of the following is a factor that relates to incentives or pressures to commit fraudulent financial reporting?

Auditing standards specifically require auditors to identify ________ as a fraud risk in most audits.

When dealing with revenue frauds:

Analytical procedures can be very effective in detecting inventory fraud. Which of the following analytical procedures would not be useful in detecting fraud?

Most cases of fraudulent reporting involve:

Which party has the primary responsibility to oversee an organization's financial reporting and internal control process?