-Internal Control

Question 1

If internal control is poor and a company’s accounting practices are sloppy, which risk is higher?

Answer 1

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 2

If internal control is poor, what is the effect on the audit?

Answer 2

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 3

What does internal control provide reasonable assurance for?

Answer 3

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 4

What is required in an examination of internal control under Sarbanes-Oxley?

Answer 4

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 5

What is the relationship between internal control and substantive testing?

Answer 5

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 6

What are the three objectives of internal control?

Answer 6

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 7

What are the five components of internal control?

Answer 7

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 8

What is the purpose for a Control Environment assessment?

Answer 8

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 9

What are the components of the Control Environment?

Answer 9

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 10

What does an auditor’s assessment of Detection Risk determine?

Answer 10

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 11

What determines the acceptable level of Detection Risk?

Answer 11

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 12

What situations or circumstances could increase the risk of material misstatement?

Answer 12

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 13

What happens when Control Risk is assessed to be at the maximum level?

Answer 13

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 14

What happens when Control Risk is below the maximum level?

Answer 14

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 15

Describe some common examples of Control Activities.

Answer 15

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 16

What should an auditor understand with respect to Information and Communication on an audit?

Answer 16

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 17

How must an auditor document understanding of Internal Control?

Answer 17

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 18

What questions should be asked to determine the risk of material misstatement?

Answer 18

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 19

What is the purpose of internal control testing and what procedures does the auditor perform to test internal controls?

Answer 19

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 20

When can controls tested by an auditor in a prior year be used in the current year’s audit assessment?

Answer 20

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Exception: if the control has changed since the last audit

Question 21

What happens if Internal Controls are deficient?

Answer 21

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 22

What is a Material Weakness?

Answer 22

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 23

What does Tracing test?

Answer 23

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 24

What does Vouching test?

Answer 24

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit ninjaCPAreview.com.

Question 25

What activities represent Segregation of Duties?

Answer 25

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit [**ninjaCPAreview.com**](https://www.ninjacpareview.com/flashcard-update).

Question 26

With respect to **signing checks**, how are duties segregated?

Answer 26

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit [**ninjaCPAreview.com**](https://www.ninjacpareview.com/flashcard-update).

Question 27

With respect to **custody of assets**, how should duties be segregated?

Answer 27

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit [**ninjaCPAreview.com**](https://www.ninjacpareview.com/flashcard-update).

Question 28

What are the limitations on Control Activities?

Answer 28

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit [**ninjaCPAreview.com**](https://www.ninjacpareview.com/flashcard-update).

Question 29

What is required if a Material Weakness is identified?

Answer 29

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit [**ninjaCPAreview.com**](https://www.ninjacpareview.com/flashcard-update).

Question 30

What is the effect of a Significant Deficiency? What is it?

Answer 30

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit [**ninjaCPAreview.com**](https://www.ninjacpareview.com/flashcard-update).

Question 31

What must occur if a **Significant Deficiency** is identified?

Answer 31

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit [**ninjaCPAreview.com**](https://www.ninjacpareview.com/flashcard-update).

Question 32

What is a Control Deficiency?

Answer 32

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit [**ninjaCPAreview.com**](https://www.ninjacpareview.com/flashcard-update).

Question 33

What must an auditor ask if using the work of **third parties**?

Answer 33

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit [**ninjaCPAreview.com**](https://www.ninjacpareview.com/flashcard-update).

Question 34

What must an auditor understand with respect to **internal auditors**?

Answer 34

This content is no longer supported by NINJA CPA Review. For 2024 CPA Exam updates and beyond, please visit [**ninjaCPAreview.com**](https://www.ninjacpareview.com/flashcard-update).