Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 22.3MCQ
Which of the following correctly describes an internal control component?
- (1) Control activities set the tone of the organization.
- (2) Information and communication systems have to do with management’s analysis of risk.
- (3) Risk assessment relates to assessing the quality of the internal control structure overtime.
- (4) Monitoring relates to ongoing assessment by management to determine whether controls are operating as intended.
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Students have asked these similar questions
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.
In which element of Internal Control
are personnel policies included:
Control Procedures
Control Environment
O Risk Assessmenet
Information and Communication
O Monitoring
Following is a list of internal controls. Select the COSO component that best matches each internal control.
Internal control
a. Implementation of policies to reduce risk of internal control failure.
b. Reporting of internal control effectiveness to investors.
c. Evaluation of internal control effectiveness by external auditors.
d. Identification and management of risks.
COSO
Control activities
Information & communication
Monitoring
Risk assessment
Control environment
Assessm
Chapter 11 Solutions
Auditing And Assurance Services
Ch. 11 - Prob. 1RQCh. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - Prob. 4RQCh. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQ
Ch. 11 - Prob. 11RQCh. 11 - Prob. 12RQCh. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Prob. 16RQCh. 11 - Prob. 17RQCh. 11 - Prob. 18RQCh. 11 - Prob. 19RQCh. 11 - Prob. 20.1MCQCh. 11 - Actions, policies, and procedures that reflect the...Ch. 11 - Prob. 20.3MCQCh. 11 - Prob. 21.1MCQCh. 11 - Prob. 21.2MCQCh. 11 - Prob. 21.3MCQCh. 11 - Prob. 22.1MCQCh. 11 - Prob. 22.2MCQCh. 11 - Which of the following correctly describes an...Ch. 11 - Prob. 23DQPCh. 11 - Prob. 24DQPCh. 11 - The following are misstatements that have occurred...Ch. 11 - Prob. 26DQPCh. 11 - Prob. 27DQPCh. 11 - Prob. 28DQPCh. 11 - Prob. 29DQPCh. 11 - Prob. 30DQPCh. 11 - Prob. 31DQPCh. 11 - Prob. 32C
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- What are the components of internal control per COSO’s Internal Control—Integrated Framework? a. Organizational structure, management philosophy, planning, risk assessment, and control activities. b. Control environment, risk assessment, control activities, information and communication, and monitoring. c. Risk assessment, control structure, backup facilities, responsibility accounting, and natural laws. d. Legal environment of the firm, management philosophy, organizational structure, control activities, and control assessment.arrow_forwardHow 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_forwardWhich one of the following components of internal control over financial reporting sets the tone for the organization? a. Risk assessment. b. Control environment. c. Information and communication. d. Monitoring.arrow_forward
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