12th Sept

Internal Controls

1

According to PSA 315, internal control is defined as a process designed and effected by those charged with governance, management, and other personnel to provide ______ about the achievement of the entity's objectives

Reasonable assurance

1

The conclusion reached as a result of assessing control risk is referred to as the __________ 

assessed level control risk

2

What is the very first step in the auditor's consideration of the entity's internal control systems?

Obtain understanding of the internal control

2

Irrespective of how effective internal controls appear, before the auditor can rely on them to reduce substantive tests, the auditor must perform

test of controls

3

The foundational component of internal control that provides discipline and structure is the

Control Environment

3

The primary responsibility for establishing and maintaining an accounting and internal control system rests with

management and those charged with governance

Trivia

1

Trivia Question: What blood type qualifies as a universal donor?

O negative

1

Trivia Question: What is the most common letter in the English alphabet?  

E

2

Trivia Question: Which planet in the Solar System is the hottest?

Venus

2

Trivia Question: Which bird is often associated with delivering babies?

Stork

3

Trivia Question: DNA stands for?

Deoxyribonucleic Acid

3

Trivia Question: What’s the most populated city in the United States?

New York City

Mixed

1

If the auditor concludes that it is more efficient to rely on internal control systems, the auditor will plan to assess control risk at

less than high level

1

Trivia Question: What is the scientific name of the process where plants prepare their nutrients?

Photosynthesis

2

Under PSA requirements, the auditor cannot assess control risk at less than high level without performing

test of controls

2

Trivia Question: How many fingers does Spongebob have on his hand?

4

3

When computer processing is used in significant accounting applications, internal control procedures can be classified into two types: general controls and

application controls

3

The specific component of internal control designed to identify and analyze internal and external factors that threaten the achievement of business objectives is

Risk assessment

Triviz

1

Trivia Question: Botany is the scientific study of what?

Plants

1

Trivia Question: What is the 2nd smallest country in the world?

Monaco

2

Trivia Question: Which nationality is also called Kiwi?

New Zealand

2

Trivia Question:  Who founded and was the CEO of Microsoft?

Bill Gates

3

Trivia Question: What kind of alcohol is made from grapes?

Wine

3

Trivia Question: What is the world’s biggest island? 

Australia

Internal Controls

1

Oral communications of internal control weaknesses are acceptable provided that these discussions are adequately documented in the

Working Papers

1

A __ test confirms the auditor's understanding of how accounting systems function by tracing transactions

walk through

2

According to auditing standards, auditors are ___ ____ to actively search for and/or identify internal control weaknesses, though they must report those that come to their attention

NOT REQUIRED

2

When modifying the timing of substantive tests due to a high combined risk assessment, the auditor will perform them at _____ rather than at an interim date

year-end

3

Management's usual requirement that the cost of an internal control should not exceed expected benefits is classified under the  ____ ____ of internal control

inherent limitations

3

Most internal controls tend to be directed at ___ ____ rather than non-routine transactions.

routine transactions