Chapter 6 Quiz Consideration of Internal Control

Name: _________________________________ Section: _______________ Date:

__________________
_______________1. The conclusion reached as a result of assessing control risk is referred to as
_______________.
_______________2. Please give one Component of Internal Control?
_______________3. It involves repeating the activity performed by the client to determine whether
proper results were obtained.
_______________4. It is the process designed and affected by those charged with governance,
management and other personnel to provide reasonable assurance about the achievements of
the entity's objectives with regard to reliability of financial reporting effectiveness and efficiency
of operations and compliance with applicable laws and regulations.
_______________5. It is the risk that the entity's business objectives will not be attained as a result
of internal and external factors.
________________6. _________________
maintaining an internal control.

has

the

primary

responsibility

for

establishing

and

________________7. One of the tests of control that refers to looking at the process being
performed by others.
________________8. If the control risk is assesses at a __________, the auditor should document his
conclusion that control risk is at a high level.
________________9. Internal control is concerned with the reliability of financial information (T/F)
________________10. Well-designed internal control will prevent all fraud by top management (T/F)

Chapter 6 Quiz Consideration of Internal Control

Name: _________________________________ Section: _______________ Date:
___________________
_______________1. The conclusion reached as a result of assessing control risk is referred to as
_______________.
_______________2. Please give one Component of Internal Control?
_______________3. It involves repeating the activity performed by the client to determine whether
proper results were obtained.
_______________4. It is the process designed and affected by those charged with governance,
management and other personnel to provide reasonable assurance about the achievements of
the entity's objectives with regard to reliability of financial reporting effectiveness and efficiency
of operations and compliance with applicable laws and regulations.
_______________5. It is the risk that the entity's business objectives will not be attained as a result
of internal and external factors.
________________6. _________________
maintaining an internal control.

has

the

primary

responsibility

for

establishing

and

________________7. One of the tests of control that refers to looking at the process being
performed by others.
________________8. If the control risk is assesses at a __________, the auditor should document his
conclusion that control risk is at a high level.
________________9. Internal control is concerned with the reliability of financial information (T/F)

________________10. Well-designed internal control will prevent all fraud by top management (T/F)

Answers:
1. Assessed level of Control risk
2. Control Environment, Risk assessment, Information and communication systems, Control
Activities, Monitoring
3. Reperformance
4. Internal Control
5. Business Risk
6. Management and those charged with governance
7. Observation
8. High level
9. True
10.False