COMPREHENSIVE ASSURANCE & SYSTEMS
TOOL ACTUAL EXAM SCRIPT 2026
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A PLUS
◉ What are the five basic components of internal control according
to COSO?
Answer: Control Environment, Risk Assessment, Control Activities,
Information and Communication, Monitoring.
◉ What is management's responsibility regarding internal control?
Answer: To establish and maintain adequate internal control over
financial reporting and assess its effectiveness.
◉ What is the auditor's responsibility regarding internal control for
public companies?
Answer: To audit and issue an opinion about the effectiveness of
internal control over financial reporting.
◉ What does COSO stand for?
, Answer: Committee of Sponsoring Organizations of the National
Commission of Fraudulent Financial Reporting.
◉ What are the limitations of internal control?
Answer: Human error, deliberate circumvention, and collusion.
◉ What is the role of the audit committee?
Answer: To provide oversight of the public accounting firm, resolve
disagreements between management and the audit team, and
oversee the internal audit function.
◉ What is the purpose of risk assessment in internal control?
Answer: To identify, analyze, and manage relevant risks to the
achievement of objectives.
◉ What are control activities?
Answer: Policies and procedures that ensure management directives
are carried out, including management review controls and
separation of duties.
◉ What is the significance of the control environment?
Answer: It sets the 'tone at the top' of an organization and influences
the control consciousness of its people.
TOOL ACTUAL EXAM SCRIPT 2026
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A PLUS
◉ What are the five basic components of internal control according
to COSO?
Answer: Control Environment, Risk Assessment, Control Activities,
Information and Communication, Monitoring.
◉ What is management's responsibility regarding internal control?
Answer: To establish and maintain adequate internal control over
financial reporting and assess its effectiveness.
◉ What is the auditor's responsibility regarding internal control for
public companies?
Answer: To audit and issue an opinion about the effectiveness of
internal control over financial reporting.
◉ What does COSO stand for?
, Answer: Committee of Sponsoring Organizations of the National
Commission of Fraudulent Financial Reporting.
◉ What are the limitations of internal control?
Answer: Human error, deliberate circumvention, and collusion.
◉ What is the role of the audit committee?
Answer: To provide oversight of the public accounting firm, resolve
disagreements between management and the audit team, and
oversee the internal audit function.
◉ What is the purpose of risk assessment in internal control?
Answer: To identify, analyze, and manage relevant risks to the
achievement of objectives.
◉ What are control activities?
Answer: Policies and procedures that ensure management directives
are carried out, including management review controls and
separation of duties.
◉ What is the significance of the control environment?
Answer: It sets the 'tone at the top' of an organization and influences
the control consciousness of its people.
