Internal Control Over Financial over Reporting with Correct Questions & Answers Graded A+

Internal Control Over Financial over Reporting with Correct Questions & Answers Graded A+ True or False. If management identifies even one material weakness in internal control, then management will concluded that the organization's internal control over financial reporting is not effective. - ANS--True True or False. Effective internal control allows for more informed decisions by internal and external users of financial information. - ANS--True True or False. There is one set of control activities that all organizations should implement. - ANS--False True or False. Control activities include both preventive and detective controls. - ANS--True True or False. While understanding a client's internal control over financial reporting may help the external auditor plan the audit, the external auditor is not required to obtain this for all audit engagements. - ANS--False True or False. Internal control is intended to provide absolute assurance that an organization will achieve its objective or reliable reporting. - ANS--False True or False. Setting financial reporting objectives is a prerequisite for an organization designing and implementing internal control over financial reporting. - ANS--True True or False. The control environment component of internal control is considered a pervasive or company-wide control because it affects multiple processes and multiple types of transactions. - ANS--True True or False. The control environment is seen as the foundation for all other components of internal control. - ANS--True True or False. Only organizations in high-risk industries face a risk that they will not achieve their objective of reliable financial reporting. - ANS--False True or False. An organization's risk assessment process should identify risks to reliable financial reporting from both internal and external sources. - ANS--True True or False. An organization's accounting system is part of its information and communication component of internal control. - ANS--True True or False. An organization needs information from both internal and external sources to carry out its internal control responsibilities. - ANS--True