1.1.Which of the following is not a factor that is considered in evaluating a client's overall control environment?

a.The organizational plan

b.The accounting system

c.Management philosophy and operating style

d.An internal audit function

2.1.Which of the following would be least likely to be considered a benefit of an effective internal control structure?

a.Eliminating all employee irregularities

b.Restricting access to assets

c.Detecting ineffectiveness

d.Ensuring authorization of transactions

3.1.In the consideration of internal control, the operating effectiveness of controls is tested by

a.Flowcharts

b.Test of controls

c.Substantive tests

d.Decision tables

4.1.The auditors who become aware of an internal control reportable condition are required to communicate this to the

a.Audit committee and client's legal counsel

b.Board of directors and internal auditors

c.Audit committee

d.Internal auditors and senior management