10 Questions
During the Test of Controls phase, the auditor only focuses on the design aspect of the internal control structure.
False
TOC procedures include inquiries of client personnel, inspection of documents and records, and observation of the application of specific policies and procedures.
True
If the TOC result is assessed below the maximum level, the auditor must perform Substantive Tests.
False
Test of Transactions is performed to evaluate the efficiency of the system in handling transactions.
True
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.
True
During the Test of Controls phase, the auditor only focuses on the operation aspect of the internal control structure.
False
TOC procedures include inquiries of client personnel, inspection of documents and records, and observation of the application of specific policies and procedures.
True
If the TOC result is assessed below the maximum level, the auditor must perform Substantive Tests.
False
Test of Transactions is performed to evaluate the effectiveness of the system in handling transactions.
True
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.
True
Take this quiz to test your knowledge on the Test of Controls (TOC) phase in auditing, specifically in an IT environment. Learn about the steps involved in performing TOC, evaluating test results, and determining the degree of reliance on controls. Enhance your understanding of the importance of internal control structure and its design and operation aspects. Keywords: Test of Controls, TOC, internal control structure, IT environment, auditing.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
