18 Questions
Which of the following is NOT considered a control activity according to ISA 315?
Organisational structure
Which of the following is NOT an internal control?
Performing external confirmation of receivables
The purpose of a walk-through test is to:
Confirm that the auditor's understanding of the internal control system is correct
Which of the following descriptions is correct?
Narrative notes are a list of questions about controls in a particular aspect of operations or accounting. They are designed to establish whether appropriate controls exist that meet specific control objectives.
Which of the following is NOT a purpose of an internal control questionnaire?
To ask for feedback about job satisfaction and targets from staff
What is the main purpose of performing a $ ext{walk-through test}$ during an audit?
To confirm that the auditor's understanding of the internal control system is correct
According to the information provided, which of the following statements is correct regarding internal control questionnaires?
They are lists of questions designed to assess the existence and effectiveness of control objectives.
Which of the following is NOT an expected internal control in a sales system?
All goods received notes (GRNs) are authorized by the customer
Which of the following statements accurately describes a walk-through test?
It confirms the auditor's understanding of the internal control system.
Based on the information provided, which of the following is NOT considered a control activity according to ISA 315?
Organizational structure
Which of the following is NOT an expected internal control in a purchases system?
All invoices are grid-stamped to create the company's own invoice system
Which of the following statements accurately describes an internal control?
Ensuring cash is locked away is an internal control.
For which of the following situations would the auditor employ the services of an external expert, as per ISA 620?
Valuation of land and buildings
According to the information provided, which of the following statements is NOT a purpose of an internal control questionnaire?
To request ideas for improving the internal control system from external auditors.
Which of the following tangible non-current assets is typically not depreciated?
Land
Which of the following details would NOT typically be included in a non-current asset register?
Capital allowances, disposal proceeds, supplier, location
Based on the information given, which of the following statements is correct regarding performance reviews?
Performance reviews are considered control activities according to ISA 315.
Which of the following is NOT a substantive test for the audit of non-current assets?
Reconcile the non-current assets register to the receivable's ledger control account
Test your knowledge of control activities and internal controls based on ISA 315 standards. Identify examples of control activities and internal controls in various scenarios as per the ISA guidelines.
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