Answer Statements 1. Under COSO, the control environment, risk assessment, the accounting information and communication system, control activities and monitoring are referred to as the of internal control. The Foreign Corrupt Practices Act of 1977 prohibits to foreign officials to obtain business and requires 2. companies to maintain an effective system of internal control. No single employee in a company should have allowing the employee to both perpetrate and conceal 3. errors or fraud in the normal course of performing his or her job. 4. The two broad categories of information processing controls are and application controls. 5. Controls that rely on segregation of duties may be circumvented by among employees. A client's 6. factors include such things as management philosophy and operating style, and organizational structure. A form of insurance in which an insurance company agrees to reimburse an employer for losses attributable to 7. employee theft is referred to as The auditors of a service organization, known as service auditors, may review the controls at the organization and 8. issue a report that may be relied upon by Auditors are required by professional standards to communicate and material weaknesses to the audit 9. committee. 10. One or more in internal control result in an adverse opinion on internal control. bribes collusion components control environment fidelity bonds general controls general controls incompatible duties material weaknesses significant deficiencies user auditors