Question Details

After finishing the review phase of the study 



1.
	When controls are deemed ineffective and assessed control risk is at the maximum for a private company, there will be ______ emphasis placed on tests of controls.
	a.	no
	b.	relatively little
	c.	moderate
	d.	heavy
	
2.	Tests of controls address each of the following questions except:
	a.	How were the procedures performed?
	b.	Why were the procedures performed?
	c.	Were the necessary procedures performed? 
	d.	Who performed the procedures?
	
3.	Which of the following audit tests would be regarded as a test of controls?
	a.	Comparison of the inventory pricing to vendors’ invoices.
	b.	Tests of the signatures on canceled checks to board of directors’ authorizations.
	c.	Tests of the additions to property, plant, and equipment by physical inspections.
	d.	Review of the specific items making up the balance in a given general ledger account.
	
4. (Public)
	Which of the following tests form the basis for an auditor- report on internal control over financial reporting?
	a.	Analytical procedures
	b.	Tests of transactions
	c.	Tests of controls
	d.	Tests of details of balances
	
5.
	After finishing the review phase of the study and evaluation of internal control in an audit, the auditor should perform tests of controls on:
	a.	those controls that the auditor wants and plans to rely upon.
	b.	those controls in which material weaknesses were identified.
	c.	those controls that have a material effect upon the financial statement balances.
	d.	a random sample of the controls that were reviewed.




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