Risk and Procedures for Control Paper 1

1

One of the financial statement auditor’s major concerns is to ascertain whether internal control is designed to provide reasonable assurance that






2

The primary responsibility for establishing and maintaining internal control rests with






3

Internal controls are designed to provide reasonable assurance that






4

Which of the following are considered control environment factors?
Detection Risk
Personnel Policies and Practices






5

Basic to a proper control environment are the quality and integrity of personnel who must perform the prescribed procedures. Which is not a factor in providing for competent personnel?






6

A director of a corporation is best characterized as a(n)






7

Seymore was recently invited to become a director of Buckley Industries, Inc. If Seymore accepts and becomes a director, he along with the other directors will not be personally liable for






8

A corporate director commits a breach of duty if






9

Audit committees have been identified as a major factor in promoting the independence of both internal and external auditors. Which of the following is the most important limitation on the effectiveness of audit committees?






10

The audit committee may serve several important purposes, some of which directly benefit the internal audit activity. The most significant benefit provided by the audit committee to the internal audit activity is






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