1-The auditor needs to investigate any control exceptions identified during their testing. What does the auditor need to find out about these control exceptions? Select all that apply.

a)financial statement accounts affected

b)amounts involved

c)if the shareholders are aware of the exceptions

d)potential effect on other audit procedures

e)cause of exceptions

2-Which of the following assertions are matched to the internal control objective which states that transactions need to be recorded properly? Select all that apply.

a)existence

b)rights and obligations

c)allocation

d)valuation

e)completeness

3-If a production manager questions the accuracy of the production report because it differs significantly from their knowledge of operations, this would be part of the

a)control environment.

b)monitoring of controls.

c)information systems.

d)control activities.

4-Which type of controls do not rely on the client's IT environment for their operation?

a) ITGC

b) application

c) automated

d) manual

5- What does the auditor consider if they identify any exceptions while performing the control testing?

a) changing materiality

b) detection risk factors

c) existence of compensating controls

d) impact on audit risk

6- Which of the following would be considered an adverse change in the overall control environment of an entity?

a) loss of the CFO

b) addition of a new product line

c) purchase of significant assets

d) loss of entry-level employee

7-Controls that are applied to transactions to prevent fraud or error from occurring are called

a) entity-level controls.

b) detective controls.

c) environmental controls.

d) preventive controls.

8-How is the internal control objective that states transactions should be timely best described?

a) controls are in place to ensure accumulated totals in the transaction file are correctly transferred to the general ledger and subsidiary ledgers

b) controls are in place to ensure transactions are recorded in the correct accounting period

c) controls are in place to ensure correct amounts are assigned to the transactions

d) controls are in place to ensure transactions are charged and allocated to the correct general ledger account

9-The preparation of the bank reconciliation is a detective control.

True

False

10-

The attitudes and actions of those charged with governance concerning an entity's internal control is known as

a) control activities.

b) the entity's risk assessment process.

c) the control environment.

d) monitoring of controls.