15 Questions
Which of the following can result in fraud and errors that can cause financial statements to be materially misstated?
Lack of supervision
Access control issues can be similar to which of the following exposure issues?
Granting inappropriate access privileges
What can assigning incompatible duties to an individual often lead to?
Concealing the crime
What can be used to test all of the management assertions outlined in Table 10.1?
Reviewing the segregation of duties
What may not be apparent from an organizational chart?
Covert relationships
Which of the following is the purpose of output controls?
To identify operational and internal control problems
What is an example of an output control?
Exception report derived from the Suppliers Invoice file
Where is system output needed for processing accuracy review and error detection?
At intermediate junctures
What can an exception report derived from the Suppliers Invoice file help management assess?
Operational performance of the accounts payable process
What should the total of all reductions to accounts payable equal to?
The total of all cash disbursements to vendors
Which of the following is NOT a purpose of output controls?
To provide end-of-day reporting
Which type of report can help management assess the operational performance of the accounts payable process?
Exception report derived from the Suppliers Invoice file
What can output controls be designed to identify?
Operational and internal control problems
At which junctures is system output needed for processing accuracy review and error detection?
Intermediate junctures
What can an exception report derived from the Suppliers Invoice file help identify?
Discounts lost
Quiz: Mitigating Fraud and Errors in Financial Statements Learn how to prevent fraud and errors in financial statements by understanding the importance of adequate segregation of duties and supervision. This quiz will test your knowledge on access control issues, assigning appropriate access privileges, and the risks of collusion. Master the techniques to ensure accurate and reliable financial reporting.
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