5. 6. Which of the following is NOT an element of control environment? A) Communication and enforcement of integrity and ethical values B) Participation of those charged with governance C) Management's philosophy and operating cycle D) Data processing Who is/are responsible for creating and maintaining a culture of honesty and ethical behavior in the entity? A) Auditors B) Employees C) Management D) Shareholders 7. An auditor tests a sample of purchases entries in the voucher register to the supporting documents to support the A) completeness assertion. B) existence or occurrence assertion. C) valuation or allocation assertion. D) rights and obligations assertion. 8. Which of the following audit procedures would an auditor most likely perform with a view to determining the effectiveness of an entity's internal controls relating to the occurrence assertion for payroll transactions? A) Examine indication of authorization and observe the segregation of duties concerning personnel responsibilities and payroll disbursement. B) Inspect evidence of accounting for prenumbered payroll cheques. C) Recompute the payroll deductions for employee fringe benefits. D) Verify the preparation of the monthly payroll account bank reconciliation