which assertion?

	Rights & Obligations
	Completeness
	Existence
	Presentation & Disclosure

Which of the following statements regarding internal controls is correct?

	When internal controls are ineffective, the extent of substantive tests will be increased.
	When internal controls are effective, the auditor may eliminate substantive tests.
	When internal controls are ineffective, the extent of tests of controls will be increased.

General controls over IT systems are typically tested using:

	Integrated test data (i.e., Integrated test facility)
	Observation, Inquiry and Inspection
	Transaction tagging
	Test data

In the context of the fraud triangle, ensuring debt covenant compliance is:

	None of the options are correct.
	A rationalization
	An opportunity
	An incentive

Which of the following is a factor that would increase the auditor's assessment of inherent risk/fraud risk for a large jewelry store?

	The nature of products sold.
	The use of standard retail sales practices.
	Managerial salaries with no bonus compensation.
	Consistently strong cash flows from operations across time.

The financial statement assertions are used when:

	Evaluating substantive test results.
	Planning substantive tests.
	Assessing control risk.
	All of the options are examples of when financial statement assertions are used.

The auditors used block sampling to test internal controls over accounting processes during the first quarter of the year (i.e., Jan - March). Based on their test results, the auditors concluded that accounting internal controls were effective. An accounting clerk who performed bank account reconciliations quit in June. His replacement failed to perform bank account reconciliations on a consistent basis for the remainder of the year. From the auditors' perspective, this is an example of:

	Assessing control risk too high
	Assessing control risk too low
	Incorrect acceptance
	Incorrect rejection

Only answer