25) Which of the following is A) A well-designed internal ern control objectives B) An inherent limitation to internal control is the fact that controls can be circumvented by management override. C) A well-designed and operated internal control environment should detect collusion perpetrated by two people. D) Internal control is a necessary business function and should be designed and operated to detect all errors and fraud. ements is correct regarding internal control? control environment ensures the achievement of an entity's 26) Which of the following is not considered one of the tiree factors increasing the probability of fraud? A) Motive. B) Lack of training. C) Opportunity D) Rationalization. 27) Your client is in the process of acquiring another company. You have been requested to verify that cash for the company being acquired is properly stated. The audit technique that will yield the most persuasive evidence is: A) examination of the company's escrow account. B) interview with the company's treasurer and cash manager. C) preparation and review of standard bank confirmation inquiries. D) analytical computations comparing current cash in the bank with previous accounting periods. 28) An audit plan of substantive procedures for cash would not include: A) request a cutoff bank statement be mailed to the client. B) request bank reconciliations from client. C) examine deposit-in-transit checks to cutoff bank statement for deposit. D) prepare a written client bank confirmation. 29) An auditor is evaluating a client's internal controls. Which of the following situations would be the most difficult internal control issue for an auditor to detect? A) The accounting staff neglects the control, due to increased transactions to be processed. B) The technology department writes a program that does not properly implement the control, due to a lack of understanding. C) Two employees, who work in different departments, are circumventing an internal control. D) Someone erroneously disables edit checks in a software program designed to identify control exceptions