6 10 points Which of the following statements about Monitoring is not true? The frequency of monitoring should be dictated by how managers assess risk The greater the complexity of an internal control, the more automated the evaluation should be Evaluation of the effectiveness of internal controls should be a continuous process regardless of the frequency of each individual control's evaluation The design and operation of controls should be overseen by managers at various levels 7 10 points Which of the following statements about audit trails is not true? The audit trail cannot be established without a complete description of the types of source documents individuals must use to record accounting transactions OOOO The internal control objective of an audit trail can be categorized as compliance, and not operations nor reporting Without a good audit trail, errors and irregularities are more likely to happen and not be detected By establishing an audit trail, an auditor is trying to check for accuracy, completeness, and validity of financial data and information 8 10 points Which of the following controls would be least effective in combating the threat of falsified inventory transactions? Separate authorization and custody over inventory Separate custody and recording over inventory OOOO Separate recording and authorization over inventory All of the above would be equally effective in combating falsified inventory transactions 9 10 points Which of the following controls would be most effective in combating the threat of financial statement fraud? Separate authorization and custody over financials Separate custody and recording over financials OOOO Separate recording and authorization over financials All of the above would be equally effective in combating financial statement fraud