ACCT 4301 QUIZ QUESTIONS AND 100% CORRECT ANSWERS

A. Believes the internal controls are unlikely to be effective.After obtaining an understanding of an entity's internal control system, an auditor may set control risk at high for some assertions because he or she A. Believes the internal controls are unlikely to be effective. B. Determines that the pertinent internal control components are not well documented. C. Performs tests of controls to restrict detection risk to an acceptable level. D. Identifies internal controls that are likely to prevent material misstatements. A. The university's risk identification and analysisA university's chief internal audit officer is using the COSO Internal Control Framework to improve its internal controls. In establishing the "tone at the top", she will focus on all of the following principles, except: A. The university's risk identification and analysis. B. The university's organizational structure. C. The development and retention of competent employees. D. Holding employees accountable for their internal control responsibilities. D. Assess whether the service organization's controls are suitably designed and operating effectively.SOC 1, Type 2 reports by the service organization's auditor typically A. Provide reasonable assurance that their financial statements are free of material misstatements. B. Ensure that the entity will not have any misstatements in areas related to the service organization's activities. C. Ensure that the entity is billed correctly. D. Assess whether the service organization's controls are suitably designed and operating effectively. C. Concluding that controls are ineffective.Assessing control risk below high involves all of the following except A. Identifying specific or key controls to rely on. B. Performing tests of controls. C. Concluding that controls are ineffective. D. Analyzing the achieved level of control risk after performing tests of controls.