Internal Control over Financial Reporting

ICFR

100

The processes and procedures that management of an organization or a government entity puts in place to help make sure that its assets are protected and that entity activities are conducted in accordance with the organization’s policies and procedures

What is INTERNAL CONTROL

200

These are specifically designed to address risks related to financial reporting

What is Internal Control over Financial Reporting

300

This concept involves assigning responsibility for different parts of a process to different people so that no one person can control the entire process.

What is "Segregation of Duties"

400

An employee who is authorized to initiate a payment to a vendor is not also authorized to sign vendor payment checks is an example of this type of control?

What is "Preventative Control"

500

Independently comparing two sets of records that relate to the same transaction and analyzing any differences is an example of this type of control

What is a "Detective Control"

Responsibility

100

This person has the overall responsibility for the management, design, implementation and monitoring of Internal Controls over Financial reporting.

What is the "CEO/CFO's" role as it pertains to internal controls.

200

"The financial and other information in the financial statements is appropriately presented and disclosures are clearly expressed" describes which Management Assertion

What is "Presentation and Disclosure"

300

"Amounts and other data relating to recorded transactions and events have been recorded appropriately. Asset, liabilities, and net position are included in the financial statements at appropriate amounts, and any resulting valuation or allocation adjustments are properly recorded" is an example of which Management Assertion

What is "Accuracy/Valuation or allocation

400

"All transactions and events that should have been recorded are recorded in the proper period" is an example of which Management Assertion"

What is "Completeness"

500

This Act requires agencies to establish internal control and financial systems that provide reasonable assurance of achieving the objectives of internal control

What is "The Federal Managers’ Financial Integrity Act (FMFIA) "

Understanding the client

100

Auditors process to review how a transaction begins, how it is recorded in the books and ultimately how the transaction flows through the financial statements.

What is a "Walk Through"

200

This is a key element of the top-down approach, and it underlies the entire audit process in the audit of internal control.

What is "Risk Assessment"

300

How many components of internal control, name at least 2.

5 components Control Environment Entity Risk Assessment Process Information and Communication Control Activities Monitoring

400

This enables an auditor to plan and perform the necessary tests of controls.

Obtaining an understanding of the entity.

500

Knowing how the process works at the entity will enable the auditor to find what?

Potential areas of misstatement.

Control Activity I

100

The objective of this type of control is to prevent or detect misstatements in significant financial statement assertions.

Financial reporting Control

200

The objective of this type of control is to comply with significant provisions of applicable laws and regulations

Compliance Controls

300

Requiring a second level review of all invoices greater than a $25,000 is an example of what characteristic within a control activity.

"Selectivity"

400

Name at least 2 type of control activities

Authorization, Approval, Seg of Duties, Design and use of Documnets and records, Safeguards over access to and use of Assets and Records, Independent Checks, Valuation of Recorded amounts, Summarization of accounting data,

500

Master files include only authorized employees, customers, or suppliers is an example of what type of Control Activity

"Authorization"

Control Activities II

100

Prenumbered forms are used to record all of an entity’s transactions is an example of which Control Activity

"Design and use of documents and records"

200

Secured facilities (locked rooms, fenced areas, vaults, etc.) are used. Access to critical forms and equipment (such as check signing machines and signature stamps) is limited to authorized personnel is an example of ?

Safeguards over access to and use of assets and records

300

Calculations, extensions, additions, and accounting classifications are independently reviewed is an example of what type of control activity.

"Independent Checks"

400

o Recorded data are compared with information from an independent third party. (For example, recorded cash is reconciled to bank statements, and suppliers’ accounts are reconciled to monthly statements from suppliers.) Is an example of what type of control activity

"Valuation"

500

Procedures are followed to check the completeness and accuracy of data summarization, and exceptions are reviewed and resolved by authorized persons is an example of what type of control activity.

"Summarization of accounting data"