Podcast
Questions and Answers
During the Test of Controls phase, the auditor only focuses on the design aspect of the internal control structure.
During the Test of Controls phase, the auditor only focuses on the design aspect of the internal control structure.
False (B)
TOC procedures include inquiries of client personnel, inspection of documents and records, and observation of the application of specific policies and procedures.
TOC procedures include inquiries of client personnel, inspection of documents and records, and observation of the application of specific policies and procedures.
True (A)
If the TOC result is assessed below the maximum level, the auditor must perform Substantive Tests.
If the TOC result is assessed below the maximum level, the auditor must perform Substantive Tests.
False (B)
Test of Transactions is performed to evaluate the efficiency of the system in handling transactions.
Test of Transactions is performed to evaluate the efficiency of the system in handling transactions.
If the CR Preliminary assessment is below the maximum level, the auditor should perform TOC to establish the effectiveness of controls in preventing or detecting material misstatements.
If the CR Preliminary assessment is below the maximum level, the auditor should perform TOC to establish the effectiveness of controls in preventing or detecting material misstatements.
During the Test of Controls phase, the auditor only focuses on the operation aspect of the internal control structure.
During the Test of Controls phase, the auditor only focuses on the operation aspect of the internal control structure.
TOC procedures include inquiries of client personnel, inspection of documents and records, and observation of the application of specific policies and procedures.
TOC procedures include inquiries of client personnel, inspection of documents and records, and observation of the application of specific policies and procedures.
If the TOC result is assessed below the maximum level, the auditor must perform Substantive Tests.
If the TOC result is assessed below the maximum level, the auditor must perform Substantive Tests.
Test of Transactions is performed to evaluate the effectiveness of the system in handling transactions.
Test of Transactions is performed to evaluate the effectiveness of the system in handling transactions.
If the CR Preliminary assessment is below the maximum level, the auditor should perform TOC to establish the effectiveness of controls in preventing or detecting material misstatements.
If the CR Preliminary assessment is below the maximum level, the auditor should perform TOC to establish the effectiveness of controls in preventing or detecting material misstatements.
