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WorksheetsCHAPTER 13: OVERVIEW OF INTERNAL CONTROL
Total questions: 15
Worksheet time: 9mins
It refers to all the policies and procedures adopted by the management of an entity to assist in achieving management's objective of ensuring, as far as practicable, the orderly and efficient conduct of its business.
External Control
Rules and Regulations
Internal Control System
Government Policies
This are the people who perform and execute the established policies and procedures.
Human Resources
Employees
Board of Directors
Auditors
The purpose of internal control is to provide absolute assurance that an organization will achieve its objective of reliable financial reporting.
True
False
GUESS THE GIBBERISH:
core eek thief hawk showns
(a)
Which of the following scenarios represents a control deficiency?
Missing control that is required for achieving objectives.
Control that provides reasonable, but not absolute assurance,
A control that operates as designed
An immaterial individual misstatement in internal
Only organizations in high-risk industries face a risk that they will not achieve their objective of reliable financial reporting.
True
False
An organization's risk assessment process should identify risks to reliable financial reporting from both internal and external sources.
True
False
Inventories may be kept in a storeroom, or negotiable instruments may be placed in safe deposit box. What kind of control activity is this about?
Access to Assets
Segregation of duties
Independent check on performance
Adequate documents and records
GUESS THE GIBBERISH:
shrek rug gar shawn hop dew tees
(a)
GUESS THE GIBERISH:
frog seed juice
(a)
The quality of an organization's internal controls affects which of the following?
Reliability of financial data
Ability of organization to remain in business
Ability of management to make good decisions
All of the above
Which of the following would not be considered a principle of an organization's control environment?
Independence and Competence of the board
Structures, reporting line, and authorities and responsibilities
Competence of accounting personnel
They would all be considered principles of the control environment
Control activities related to the processing of transactions may be grouped as follows, except:
Segregation of duties
Access to Assets
Inadequate documents and records
Proper Authorization of transactions and activities
Which of the following components of internal control over financial reporting sets the tone of organization?
Control Risk Assessment
Control Environment
Monitoring
Information and communication
An information system consists of infrastructure, software, people, procedures and data.
True
False
