answers Chapter 10 Quiz Key

answers Chapter 10 Quiz Key - Chapter 10 Take Home Quiz 1....

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Chapter 10 Take Home Quiz 1. When auditing a private company, the auditor should obtain an understanding of internal control sufficient to: a. provide reasonable protection against client fraud and defalcations by client employees. b. assess control risk. c. provide a basis for suggestions to the client for improving the accounting system. d. provide a method for safeguarding assets, checking the accuracy and reliability of accounting data, promoting operational efficiency, and encouraging adherence to prescribed managerial policies. 2. In the audit of a private company, the auditor will test controls when control risk is assessed at: a. low. b. moderate. c. high. d. low or moderate, but not high. 3. Internal controls can never be regarded as completely effective. Even if company personnel could design an ideal system, its effectiveness depends on the: a. adequacy of the computer system. b. proper implementation by management. c. ability of the internal audit staff to maintain it. d. competency and dependability of the people using it. 4. The essence of an effectively controlled organization lies in the: a. effectiveness of its independent auditor. b.
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This note was uploaded on 10/20/2010 for the course ACT 444 taught by Professor Al during the Spring '10 term at DeVry Addison.

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answers Chapter 10 Quiz Key - Chapter 10 Take Home Quiz 1....

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