ACCT 410 INTERMEDIATE ACCOUNTING I
PRACTICE TEST 2026 QUESTIONS WITH
ANSWERS GRADED A+
●● Which of the following statements about internal control is correct?
a.
A properly maintained internal control system reasonably ensures that
collusion among employees cannot occur.
b.
The establishment and maintenance of internal control is an important
responsibility of the internal auditor.
c.
An exceptionally strong internal control system is enough for the auditor
to eliminate substantive procedures on a significant account balance.
d.
The cost-benefit relationship is a primary criterion that should be
considered in designing an internal control system..
Answer: d.
The cost-benefit relationship is a primary criterion that should be
considered in designing an internal control system.
●● Internal control is a process designed to provide reasonable
assurance regarding the achievement of which objective?
, a.
Effectiveness and efficiency of operations.
b.
Reliability of financial reporting.
c.
Compliance with applicable laws and regulations.
d.
All of the above are correct..
Answer: d.
All of the above are correct.
●● Monitoring is a major component of the COSO Internal Control—
Integrated Framework. Which of the following is not correct in how the
company can implement the monitoring component?
a.
Monitoring can be an ongoing process.
b.
Monitoring can be conducted as a separate evaluation.
c.
Monitoring and other audit work conducted by internal audit staff can
reduce external audit costs.
d.
PRACTICE TEST 2026 QUESTIONS WITH
ANSWERS GRADED A+
●● Which of the following statements about internal control is correct?
a.
A properly maintained internal control system reasonably ensures that
collusion among employees cannot occur.
b.
The establishment and maintenance of internal control is an important
responsibility of the internal auditor.
c.
An exceptionally strong internal control system is enough for the auditor
to eliminate substantive procedures on a significant account balance.
d.
The cost-benefit relationship is a primary criterion that should be
considered in designing an internal control system..
Answer: d.
The cost-benefit relationship is a primary criterion that should be
considered in designing an internal control system.
●● Internal control is a process designed to provide reasonable
assurance regarding the achievement of which objective?
, a.
Effectiveness and efficiency of operations.
b.
Reliability of financial reporting.
c.
Compliance with applicable laws and regulations.
d.
All of the above are correct..
Answer: d.
All of the above are correct.
●● Monitoring is a major component of the COSO Internal Control—
Integrated Framework. Which of the following is not correct in how the
company can implement the monitoring component?
a.
Monitoring can be an ongoing process.
b.
Monitoring can be conducted as a separate evaluation.
c.
Monitoring and other audit work conducted by internal audit staff can
reduce external audit costs.
d.
