11 Questions
What is the primary focus of an IT audit?
Evaluating internal controls related to information technology
Which component is part of the COSO Internal Control Framework?
Monitoring Activities
What is the main purpose of substantive testing in auditing?
To identify material misstatements in financial statements
What is the purpose of the Control Environment in internal control?
To provide a foundation for the other control components
Which of the following is a key component of Risk Assessment in internal control?
Identifying and managing financial reporting risks
What is the main purpose of Information & Communication in internal control?
To classify and record the organization's transactions
Why is Segregation of Duties important in internal control?
To separate asset custody from recordkeeping
Which of the following best describes inherent risk?
Risk related to the characteristics of the business that may cause material financial statement errors
What is the main focus of substantive testing in an audit?
Detailed investigation of specific account balances and transactions
What is the purpose of an IT audit?
To gain a thorough understanding of the client's business processes
What does an internal control system aim to provide management with?
Reasonable assurance that the company achieves its objectives
Test your knowledge on the key components of internal control including Control Environment, Risk Assessment, Information & Communication, Control Activities, and Monitoring. Learn about entity's internal controls and their significance in risk management.
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