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WorksheetsAudit Planning ICS
Total questions: 10
Worksheet time: 10mins
Which one of the following is NOT the components of ICS
Control environment
Organizational structure
Monitoring of controls
Information and communication system
Choose the FALSE STATEMENT on Narrative description
Narrative description is simple to use
Narrative description difficult to describe details of large organization
Narrative description use symbols to create diagrams
Narrative description difficult to interpret and understand
Small entity usually implement ICS in a less formal manner thus less effective communication channel
TRUE
FALSE
Accounting records are kept in the designated Document Room is the example of
Authorization & approval
Segregation of duties
Physical control over assets and records
Supervision
Which one of the following is not the characteristics of good ICS?
Organizational structure
Segregation of duties
Monitoring of controls
Authorization & approval
Internal controls are concerned with ensuring that laws, rules and regulations are complied with
TRUE
FALSE
Categories of control activities will include policies and procedures that pertain to
prevention & detection of fraud and error
information processing
compliance to laws and regulations
identify & records all valid transactions
In the event of the ICS is strong, choose the FALSE statement
Financial statement & other data generated by entity more reliable
Auditor could possibly reduce substantive tests
Auditor need to perform more substantive tests
Less detailed checking during the audit
Who is responsible to maintain the ICS?
Auditor
Board of Directors
Shareholders
Government
Letter of Weaknesses is a letter by auditor to management at the beginning of his audit work listing any weaknesses in the design / operation of the ICS
TRUE
FALSE
