QUESTION 1 All of the following are managements objectives in designing effective internal controls over financial reporting (ICFR) except for a Comply with section 404 of the Sarabanes Oxley (SOX) act b Producing accurate and complete financial statements and other reports to make operational decisions c Ensure reliability of financial reporting d Management review of the year end financial statements to ensure proper reporting as required by GAAP 1 points QUESTION 2 Financial auditors follow a defined approach when performing the planning phase of an audit Which is the most appropriate sequence in audit planning a Understand the clients business and industry, perform preliminary analytical procedures, set preliminary judgment of materiality and performance materiality b Understand internal control and assess control risk, perform preliminary analytical procedures, set preliminary judgment of materiality and performance materiality c Understand the clients business and industry, understand internal control and assess control risk, identify significant risks due to fraud or error d Determine audit strategy, understand the clients business and industry, understand internal control and assess control risk 1 points QUESTION 3 The internal control framework widely recognized as the standard by most companies is the COSO integrated framework Based on this framework, management implements certain key segregation of duties within their accounting function Which COSO component is this most closely related to a Risk Assessment b Information and Communication c Control Activities d All of the above 1 points QUESTION 4 Your audit firm has been engaged to perform an integrated audit of a large publicly traded company The CFO tells you that internal controls over financial reporting do exist in the company but may or may not be documented The most appropriate course of action for the auditor is a Test for operating effectiveness of controls b Perform inquiry regarding financial operations identifying key controls c Management indicated controls documentation may not exist, therefore auditor can conclude design and operating effectiveness of key controls cannot be substantiated, therefore start substantive test of balance approach d All of the above

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QUESTION 1 All of the following are managements objectives in designing effective internal controls over financial reporting (ICFR) except for ______________ ? a. Comply with

QUESTION 1

All of the following are managements objectives in designing effective internal controls over financial reporting (ICFR) except for ______________ ?

	a.	Comply with section 404 of the Sarabanes Oxley (SOX) act.
	b.	Producing accurate and complete financial statements and other reports to make operational decisions.
	c.	Ensure reliability of financial reporting
	d.	Management review of the year-end financial statements to ensure proper reporting as required by GAAP

1 points

QUESTION 2

Financial auditors follow a defined approach when performing the planning phase of an audit. Which is the mostappropriate sequence in audit planning?

	a.	Understand the clients business and industry, perform preliminary analytical procedures, set preliminary judgment of materiality and performance materiality.
	b.	Understand internal control and assess control risk, perform preliminary analytical procedures, set preliminary judgment of materiality and performance materiality.
	c.	Understand the clients business and industry, understand internal control and assess control risk, identify significant risks due to fraud or error.
	d.	Determine audit strategy, understand the clients business and industry, understand internal control and assess control risk.

1 points

QUESTION 3

The internal control framework widely recognized as the standard by most companies is the COSO integrated framework. Based on this framework, management implements certain key segregation of duties within their accounting function. Which COSO component is this most closely related to?

a.
Risk Assessment

b.
Information and Communication

c.
Control Activities

d.
All of the above

1 points

QUESTION 4

Your audit firm has been engaged to perform an integrated audit of a large publicly traded company. The CFO tells you that internal controls over financial reporting do exist in the company but may or may not be documented. The most appropriate course of action for the auditor is __________________.

	a.	Test for operating effectiveness of controls.
	b.	Perform inquiry regarding financial operations identifying key controls.
	c.	Management indicated controls documentation may not exist, therefore auditor can conclude design and operating effectiveness of key controls cannot be substantiated, therefore start substantive test of balance approach.
	d.	All of the above.