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9) Which of the following best describes an entity's accounting information and communication system?A) B) C) D) Answer: DTerms: Accounting information and communication systemDiff: ModerateObjective: LO 10-3AACSB: Reflective thinking skillsMonitor transactionsRecord and process transactionsInitiate transactionsYesYesYesMonitor transactionsRecord and process transactionsInitiate transactionsNoNoNoMonitor transactionsRecord and process transactionsInitiate transactionsYesNoNoMonitor transactionsRecord and process transactionsInitiate transactionsNoYesYes13
10) An audit procedure that would most likely be used by an auditor in performing tests of control procedures in which the segregation of functions and that leaves no "audit" trail is:11) Internal controls normally include procedures designed to provide reasonable assurance that:12) Which of the following is notone of the subcomponents of the control environment?13) It is important for the CPA to consider the competence of the clients' personnel because their competence has a direct impact upon the:A) cost/benefit relationship of the system of internal control.B) achievement of the objectives of internal control.C) comparison of recorded accountability with assets.D) timing of the tests to be performed.Answer: BTerms: Competence of client personnelDiff: ModerateObjective: LO 10-3AACSB:
Reflective thinking skills
14) Proper segregation of functional responsibilities calls for separation of: