Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN: 9781305080577
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: South-Western College Pub
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Question
Chapter 7, Problem 7TFQ
To determine
Introduction: It is about the risk factor which is always present in an organization despite having Internal
To identify: Whether it’s true or false that the control risk element is always there in an organization because of some limitations of the Internal Controls.
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Check out a sample textbook solutionStudents have asked these similar questions
Which of the following is not one of the elements of a good system of internal control?
a.Control environment
b.Analysis of control procedures
c.Information and communication
d.Risk assessment
The quality of the environment in which internal control operates has a pervasive effect on many assertions.
TRUE OR FALSE? WHY?
Which of the following is not true concerning control activities?
a.Control procedures is another term for control activities.
b. Transaction authorization is a control activity.
c. Information and communication is an important component of control activities.
d. Control activities generally fall into the two categories of preventive controls and detective controls.
Chapter 7 Solutions
Auditing: A Risk Based-Approach to Conducting a Quality Audit
Ch. 7 - Prob. 1TFQCh. 7 - Prob. 2TFQCh. 7 - Prob. 3TFQCh. 7 - Prob. 4TFQCh. 7 - Prob. 5TFQCh. 7 - Prob. 6TFQCh. 7 - Prob. 7TFQCh. 7 - Prob. 8TFQCh. 7 - Prob. 9TFQCh. 7 - Prob. 10TFQ
Ch. 7 - Prob. 11TFQCh. 7 - Prob. 12TFQCh. 7 - Prob. 13TFQCh. 7 - In terms of the timing of the risk response, the...Ch. 7 - Prob. 15MCQCh. 7 - Prob. 16MCQCh. 7 - Prob. 17MCQCh. 7 - Prob. 18MCQCh. 7 - Prob. 19MCQCh. 7 - Prob. 20MCQCh. 7 - Prob. 21MCQCh. 7 - Prob. 22MCQCh. 7 - Prob. 23MCQCh. 7 - Prob. 24MCQCh. 7 - Prob. 25MCQCh. 7 - Prob. 26MCQCh. 7 - Prob. 27MCQCh. 7 - Prob. 28MCQCh. 7 - Prob. 29RSCQCh. 7 - Prob. 30RSCQCh. 7 - Define the following terms: (a) performance...Ch. 7 - Prob. 32RSCQCh. 7 - Prob. 34RSCQCh. 7 - Prob. 35RSCQCh. 7 - Prob. 36RSCQCh. 7 - How does inherent risk relate to internal...Ch. 7 - Prob. 38RSCQCh. 7 - Prob. 39RSCQCh. 7 - Prob. 40RSCQCh. 7 - Prob. 43RSCQCh. 7 - Prob. 45RSCQCh. 7 - Prob. 46RSCQCh. 7 - Prob. 47RSCQCh. 7 - Prob. 48RSCQCh. 7 - Prob. 49RSCQCh. 7 - Prob. 52RSCQCh. 7 - Prob. 53RSCQCh. 7 - Prob. 54RSCQCh. 7 - Prob. 55RSCQCh. 7 - Prob. 56RSCQCh. 7 - Prob. 57RSCQCh. 7 - Prob. 58FF
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Similar questions
- How does inherent risk relate to internal controls? Why is it important to assess inherent risks of material misstatement prior to evaluating the quality of an organization’s internal controls?arrow_forwardInternal controls are perhaps the most important tools for managing operational risk. What are internal controls? Give three examples of internal controls and explain how each control is used to minimize operational risk.arrow_forwardWhich one of the following is not included in the control environment? a. Integrity & Ethical values b. Organizational Structure c. Competence of Personnel d. External Auditorarrow_forward
- Which among the following is not a principle relating to control activities? a. Management designs control activities to achieve its objectives. b. Management designs its information systems and related control activities to achieve its objectives and respond to risks. c. External auditor implements the control activities to achieve its objectives and respond to risks d. The agency implements control activities through policies and procedures.arrow_forwardWhich of the following is not one of the components of internal control according to the framework? a. Monitoring Activities b. Control Activities c. Planning Activities d. Risk Assessmentarrow_forwardWhich of the following is true of internal control? A. Internal control procedures tend to diminish the importance of operational efficiency. B. A company's outside auditor is responsible for the company's internal control system. C. Internal controls are only necessary for public companies. D. One of the major purposes of internal control is to ensure that the assets are safeguarded.arrow_forward
- describe the uncontrolled risks in the system in risk analysis and internal controlarrow_forward1. Cite specific examples of risk avoidance, Reduction, Transfer and Retention? 2. What is the significance of internal control in an organization? Cite an example of a company that failed due to IC deficiency?arrow_forwardWhat does “limitations of internal control” mean? Provide examples of limitations that are inherent to internal control.arrow_forward
- What element of internal control would include the setting of "tone at the top"? a.control environment b.risk assessment c.monitoring d.control activitiesarrow_forwardThe purpose of ____________ is to help manage and control risk appropriately rather than to eliminate it. Internal accounting Internal control system External audit Risk managementarrow_forwardThe purpose of ____________ is to help manage and control risk appropriately rather than to eliminate it. Internal control system Internal audit External audit Risk managementarrow_forward
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