What is Internal Controls?
True or False: An auditor needs to obtain an understanding of the client's system of internal controls
True
What aspect of the internal control structure includes monthly meetings to discuss risk issues?
Risk assessment
Whose responsibility is it to perform procedures to assess level of overall risk?
Auditor
Type of control that is formal and tangible?
Hard control
What is the capital of Connecticut?
Hartford
What type of control attempts to uncover errors or irregularities that may have already occurred?
Detection Controls
What aspect of the internal control structure includes reporting, such as university emails?
information and communication
Whose responsibility is it to establish the internal controls?
Management
Type of control that is informal and intangible?
Soft control
Topeka is the capital of what state?
Kansas
What type of control attempts to stop an unwanted outcome before it happens?
Preventative controls
What aspect of the internal control structure includes purchasing limits, approvals, and security/specific policies?
Control activities
Strong internal controls have what level of control risk?
Low control risk
What type of effectiveness validates that the controls in place are actually established?
Design effectiveness
Pierre is the capital of what state?
South Dakota
Internal controls help provide reasonable assurance that information is what?
reliable, accurate and timely
This component of internal control helps assess the quality of performance over time.
Monitoring
Observing inventory counts is the responsibility of?
Auditor
What type of effectiveness determines whether the control is operating as designed?
Operating effectiveness
What is the capital of Wyoming?
Cheyenne
Internal controls further strengthen?
Safeguard of assets and economical and efficient use of resources
This is the component of internal control that provides a foundation for an effective internal control structure.
Control environment
Which procedures ensure that managements directives are carried out?
segregation of duties, safeguarding, reconciliations
What type of deficiency is less severe than a material weakness but important enough to gain attention by those responsible for oversight of the company’s financial reporting?
significant deficiencies
What is the capital of Kentucky?
Frankfort