Question1:

Which of the following is a likely approach for testing the segregation of duties?

1. Personal inquiry and confirmation
2. Analytical procedures
3. Counting variations of procedures
4. Observing employee performance of processes

Question2:

A report on internal control performed in accordance with PCAOB Standard No.5 includes an opinion on internal control for:

1. The end of each quarter
2. The prior quarter
3. The entire year
4. The as-of date.

Question3:

Public accounting firms generally rely on internal control questionnaires entirely to determine the level of control risk.

1. True
2. False

Question4:

Of the following statements about internal control, which is not valid?

1. No one person should be responsible for the custodial responsibility and the recording responsibility for an asset.
2. Control activities ensure all fraud will be eliminated.
3. Transactions must be properly authorized before such transactions are processed.
4. Because of the cost/benefits relationship,a client may apply control procedures on a test basis

Question5:

In general, bonding companies are much more likely to prosecute fraud cases than employees are

1. True
2. False