Internal Control Evaluation Questionnaires (1)

Question 1

How are these questionnaires slightly more robust?

Answer 1

They ask questions which concentrate on the significant errors or omissions that could occur of each phase of appropriate cycle if controls are weak

Question 2

What does this enable?

Answer 2

Auditors to elicit the controls which exist

Question 3

An example of a question to ICEQ?

Answer 3

Is there reasonable assurance that “Goods cannot be received without an associated liability being recorded in the accounting records

Question 4

Disadvantage of ICQs and ICEQs? (drafted)

Answer 4

Can be drafted baguely, hence misunderstood and important controls not identified

Question 5

Disadvantage of ICQs and ICEQs? (large)

Answer 5

may contain a large number of irrelevant controls

Question 6

Disadvantage of ICQs and ICEQs? (unusual)

Answer 6

May not include unusual controls, which are nevertheless effective in particular circumstances

Question 7

Disadvantage of ICQs and ICEQs? (distortion)

Answer 7

Give a distorted view of entity’s internal controls as there is no weighting of more important controls

Question 8

Disadvantage of ICQs and ICEQs? (overstate)

Answer 8

Client may be able to overstate controls

Question 9

What happens in many systems?

Answer 9

One “NO” answer (for example lack of segragation of duties) will cancel out a string of “YES” answers