An audit procedure that would most likely be used by an auditor in performing tests of control procedures in which the segregation of functions and that leaves no "audit" trail is:
A five-step approach can be used to identify deficiencies, significant deficiencies, and material weaknesses. The first step in this approach is:
Internal controls normally include procedures designed to provide reasonable assurance that:
Internal controls can never be regarded as completely effective. Even if company personnel could design an ideal system, its effectiveness depends on the:
Two key concepts that underlie management's design and implementation of internal control are:
The PCAOB places responsibility for the reliability of internal controls over the financial reporting process on:
Reasonable assurance allows for:
Which of the following is not one of the three primary objectives of effective internal control?
Proper segregation of functional responsibilities calls for separation of:
Which of management's assertions with respect to implementing internal controls is the auditor primarily concerned?
When considering internal controls, an important point to consider is that:
Which of the following is responsible for establishing a private company's internal control?
Which of the following activities would be least likely to strengthen a company's internal control?
Narratives, flowcharts, and internal control questionnaires are three common methods of:
Sarbanes-Oxley requires management to issue an internal control report that includes two specific items. Which of the following is one of these two requirements?
Which of the following best defines fraud in a financial statement auditing context?
Financial statement manipulation risk is arguably present for all companies' financial statements. However, the risk is elevated for companies that:
Analytical procedures can be very effective in detecting inventory fraud. Which of the following analytical procedures would not be useful in detecting fraud?
A company is concerned with the theft of cash after the sale has been recorded. One way in which fraudsters conceal the theft is by a process called "lapping." Which of the following best describes lapping?
In the fraud triangle, fraudulent financial reporting and misappropriation of assets:
Auditing standards specifically require auditors to identify ________ as a fraud risk in most audits.
When assessing the risk for fraud, the auditor must be cognizant of the fact that:
Which party has the primary responsibility to oversee an organization's financial reporting and internal control process?
When analyzing accounts for fraud risk:
Research indicates that the most effective way to prevent and deter fraud is to:
Which of the following questions is the auditor not required to ask company management when assessing fraud risk?
Most cases of fraudulent reporting involve:
Which of the following is a factor that relates to attitudes or rationalization to commit fraudulent financial reporting?
Fraud awareness training should be:
Which of the following parties is responsible for implementing internal controls to minimize the likelihood of fraud?