1. Explain briefly what is meant by 'an accounting system'. 2. Explain briefly why a client's accounting system is divided into subsystems (or audit segments) for audit purposes. State two bases on which this sub-division may be based. 3. Explain briefly the meaning of each of the following terms: (i) internal control system; (ii) control environment; (iii) risk assessment process; (iv) control activities; (v) monitoring of controls; (vi) general IT controls; (vii) application controls. 4. Outline the seven characteristics of a good system of internal accounting controls. 5. Describe briefly two procedures which are used to document auditees' accounting sub-systems. 6. Explain briefly the purpose of a 'walk through test' and how it is conducted. 7. In relation to internal controls, define: (i) a strength; (ii) a deficiency. 8. List five examples of inherent limitations of internal control systems. 9. (a) Explain briefly the purpose of 'compliance procedures'. (b) Give two examples of compliance procedures and link each to the audit objective it is designed to test. 10. Describe briefly what is meant by 'an audit plan' and how and when it is prepared.