Principles of auditing ch 8 Internal Controls

QUESTION 14 The auditor's report on internal control for an SEC client includes the definition of internal control over financial reporting. True False QUESTION 15 Control activities include A. Authorization of purchases of new equipment. B. Risks faced by the entity from new technology. C. The control environment. D. Market share data. QUESTION 16 Which of the following audit tests is a test of controls? A. Comparing signatures on canceled checks to those of authorized check signers. B. Comparing inventory prices to vendors' invoices. C. Tests of the specific items making up the balance in a financial statement account. D. Tests of the additions to property, plant, and equipment by physical inspections