Free Printable Internal Control, Internal Check and Internal Audit

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Internal Control, Internal Check and Internal Audit

Total questions: 10

Worksheet time: 7mins

Name

Class

Date

Proper segregation of duties will reduce the opportunities which allow persons to be in positions to both _____

Journalize entries and prepare financial statements

Record cash receipts and cash disbursements

Establish internal control and authorize transactions

Perpetrate and conceal errors and fraudulent acts

Effective internal control calls for the separation of certain functions. Which of the following functions should be separated?

Authorization, execution, and payment

Authorization, recording, and custody

Custody, execution, and reporting

Authorization, payment, and recording

Which of the following is an example of detective control?

Fraud Awareness Training

Surprise Audits

Background Checks

Data Matching

What type of control is often used by operatives where formal controls are inadequate in containing risk or are not used in practice?

Directive control

Corrective control

Entity-level control

Compensating control

In an audit of financial statements, what is an auditor's primary consideration regarding an internal control?

Whether the control reflects management's philosophy and operating style

Whether the control affects management's financial statement assertions

Whether the control provides adequate safeguards over access to assets

Whether the control enhances management's decision-making processes

Internal auditing is a non-independent, objective assurance and consulting activity designed to add value and improve an organization's operations. TRUE or FALSE?

TRUE

FALSE

Internal auditor is said to be independent, except ...

Involvement in the day-to-day operation

Direct access, report directly to the audit committee

Appointment and termination are approved by the audit committee

Periodic rotation of staff assignment

Internal auditors are normally employed by management, while external auditors work for an outside audit firm. TRUE or FALSE?

TRUE

FALSE

NOT SURE

Internal auditor has indirect reporting channel to Audit Committee. TRUE or FALSE?

TRUE

FALSE

NOT SURE

10.

Internal auditors are normally employed by management, while external auditors work for an outside audit firm. TRUE or FALSE?

TRUE

FALSE

NOT SURE

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Internal Control, Internal Check and Internal Audit

Total questions: 10

Worksheet time: 7mins

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