20) External financial statement auditors must obtain evidence regarding what attributes of an internal audit (IA) department if the external auditors intend to rely on IA's work? A) integrityB) objectivityC) competenceD) all of the aboveAnswer: D 21) To obtain an understanding of an entity's control environment, an auditor should concentrate on the substance of management's policies and procedures rather than their form because A 22) The ________ is helpful in preventing classification errors if it accurately describes which type of transaction should be in each account. D 30) Control activities are a subcomponent of the information and communication component of
internal control. 31) Adequate documents and records is a subcomponent of the control environment. 32) The chart of accounts is helpful in preventing classification errors if it accurately describes which type of transaction should be in each account. 33) Auditing standards prohibit reliance on the work of internal auditors due to the lack of independence of the internal auditors. 34) If an auditor wishes to rely on the work of internal auditors (IA), the auditor must obtain satisfactory evidence related to the IA's competence, integrity, and objectivity. 35) An example of a specific authorization is management setting a policy authorizing the ordering of inventory when less than a one-week supply is on hand. 36) Personnel responsible for performing internal verification procedures must be independent ofthose originally responsible for preparing the data. 11.4 Learning Objective 11-41) Old and new systems operating simultaneously in all locations is a test approach known as 2) Which of the following is a component of general controls? C
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- Fall '17