Which of the following is NOT one of the sub-components of the control environment? Management's philosophy and operating style. Adequate separation of duties. O Organisational structure. O Commitment to competence.

Any situation where a potential conflict can arise between the firm's owners and its managers is referred to as a(n): Group of answer choices organisational problem. compensation issue. agency problem. personnel conflict. control issue.

The Committee of Sponsoring Organizations (COSO) explains the importance of the control environment to internal controls by stating that it sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all aspects of internal control, providing discipline and structure. Explain what is meant by this statement.

List at least 5 control measures per principle of control activities (Establishment of Responsibility, Segregation of Duties, Documentation Procedures, Physical Controls, Independent Internal Verification, Human Resource Controls) which an organization may implement to establish internal control procedures.

Match each of the following components of internal control with its description. Components of Internal Control Descriptions 1. Control environment 2. Risk assessment 3. Control activities 4. Information and communication 5. Monitoring a. Procedures for maintaining separation ofduties.b. Routine activities that are meant tocontinually observe internal controlactivities.c. Transfer of data from lower managersto top executives for accurate financialreporting.d. Formal policies to evaluate internal andexternal threats to achieving companyobjectives.e. Overall attitude of the company withrespect to internal controls.

The quality of the environment in which internal control operates has a pervasive effect on many assertions.  TRUE OR FALSE? WHY?

issues of ethics, regulation and compliance and the extent to which they are constraints or threats to the organisation

35. A factors of control environment that covers the applicable directives from management in ensuring all employees understand the organization’s objectives, their individual actions interrelate, their contribution and determine how they would be held accountable: Group of answer choices None of the choices Assignment of Authority and Responsibility Commitment to Competence Organizational Structure Human Resources Policies and Practices

.  According to COSO, which component of enterprise risk management (ERM) addresses an entity’s operating structures and core values? A. Review and revision. B. Governance and culture. C. Strategy and objective-setting. D. Information, communication, and reporting.

In which element of Internal Control are personnel policies included: Control Procedures Control Environment O Risk Assessmenet Information and Communication O Monitoring