The information and communication component of internal control includes which of the following?
a. The organization deploys control activities through policies that establish what is expected and in procedures that put policies into action.
b. The organization obtains or generates and uses relevant, quality information to support the functioning of other components of internal control.
c. The organization identifies and assesses changes that could significantly impact the system of internal control.
d. All of the above.
b
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The basic definition of auditing states it is a process to:
A. detect fraud. B. objectively obtain and evaluate evidence regarding assertions. C. examine individual transactions so that the auditor may certify as to their validity. D. assure the consistent application of correct accounting procedures.
Users access the database
a. by direct query b. by developing operating software c. by constantly interacting with systems programmers d. all of the above
For the following situation, state whether it represents a strength or weakness in internal control and give the reason for your answer
The mailroom employee opens all incoming mail Customers' checks are sent to the treasurer, and remittance advices are sent to the accounting department. The controller compares the daily bank deposit amount from the treasurer and the daily debit to cash from the accounting department. What will be an ideal response
A person's written statement that he is leaving property "to Margaret in full confidence and with hope she will take care of Tina" is too indefinite to create a trust
a. True b. False Indicate whether the statement is true or false