SASS EXAM 2025 WITH 100% ACCURATE
SOLUTIONS
A system of internal control consists of policies and procedures designed to provide
management with - Precise Answer ✔✔reasonable assurance that the company achieves its objectives
Management's objectives with respect to internal control include - Precise Answer ✔✔providing
reasonable assurance that the goals and objectives important to the entity have
been met.
Management safeguards assets by - Precise Answer ✔✔controlling access and by comparison of physical
items to records
Carrie is the manager of the Bay Street Pharmacy. Carrie is considering implementing a security tag
system to reduce the losses related to stolen goods at their store. The system Carrie is looking at
currently costs $60,000 and is expected to be effective for 5 years. In order to justify the implementation
of the security tag system, average theft per year should be at least - Precise Answer ✔✔$12,000.
Which one of the following controls would be of concern to management, but not to the auditor?
Controls over the - Precise Answer ✔✔distribution of promotional information to present and potential
clients.
To comply with the second examination standard, the auditor need not be concerned with all areas of
internal control that apply to management. The auditor's primary concerns are with the system's ability
to - Precise Answer ✔✔maintain reliable control systems pertaining to financial transactions.
The accuracy of the results of the accounting system (account balances) is heavily dependent upon the -
Precise Answer ✔✔accuracy of the inputs and processing (transactions).
The auditor may identify some risks that cannot be effectively tested by substantive tests alone,
SOLUTIONS
A system of internal control consists of policies and procedures designed to provide
management with - Precise Answer ✔✔reasonable assurance that the company achieves its objectives
Management's objectives with respect to internal control include - Precise Answer ✔✔providing
reasonable assurance that the goals and objectives important to the entity have
been met.
Management safeguards assets by - Precise Answer ✔✔controlling access and by comparison of physical
items to records
Carrie is the manager of the Bay Street Pharmacy. Carrie is considering implementing a security tag
system to reduce the losses related to stolen goods at their store. The system Carrie is looking at
currently costs $60,000 and is expected to be effective for 5 years. In order to justify the implementation
of the security tag system, average theft per year should be at least - Precise Answer ✔✔$12,000.
Which one of the following controls would be of concern to management, but not to the auditor?
Controls over the - Precise Answer ✔✔distribution of promotional information to present and potential
clients.
To comply with the second examination standard, the auditor need not be concerned with all areas of
internal control that apply to management. The auditor's primary concerns are with the system's ability
to - Precise Answer ✔✔maintain reliable control systems pertaining to financial transactions.
The accuracy of the results of the accounting system (account balances) is heavily dependent upon the -
Precise Answer ✔✔accuracy of the inputs and processing (transactions).
The auditor may identify some risks that cannot be effectively tested by substantive tests alone,
