(Test Bank)Principles of Auditing and Other Assurance Services 20th Edition TBChap007

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1、Chapter07InternalControl True/FalseQuestions 1.Internalcontrolisconcernedwiththereliabilityoffinancialinformation.  True    False 2.TheForeignCorruptPracticesActprohibitsbribestoforeigncorporateofficialstoobtainbusiness.  True    False 3.Incompatibledutiesexistwhenanemployeeis

2、inapositiontoperpetrateandconcealerrorsorfraud.  True    False 4.Internalauditorsshouldpreferablyreporttothechiefaccountingofficerofthecompany.  True    False 5.Well-designedinternalcontrolwillpreventallfraudbytopmanagement.  True    False 7-93Copyright©2016McGraw-HillEducatio

3、n.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.6.CPAfirmsmayusewrittennarrativestodescribeinternalcontrolintheirauditworkingpapers.  True    False 7.Theauditors'communicationofinternalcontrolsignificantdeficienciesshouldbead

4、dressedonlytoseniormanagementofthecompany.  True    False 8.Iftheauditors'assessmentofthedesignofinternalcontrolrevealsthatitcannotbereliedupon,theauditorsarenotrequiredtoprepareanydocumentationofinternalcontrolfortheirworkingpapers.  True    False 9.Therelativelylownumberofty

5、pesoftransactionsincurredbysmallfirmsmakesthesegregationofdutiesimpossible.  True    False 10.Inafinancialstatementaudit,CPAsarerequiredtoassesstheoperatingeffectivenessofmostsignificantaccountingorientedcontrols.  True    False  MultipleChoiceQuestions 7-93Copyright©2016McGra

6、w-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.11.Whichofthefollowingmatterswouldanauditormostlikelyconsidertobeasignificantdeficiencytobecommunicatedtotheauditcommittee?  A. Management'sfailuretorenegotiateunf

7、avorablelong-termpurchasecommitments.B. Recurringoperatinglossesthatmayindicategoingconcernproblems.C. Evidenceofalackofobjectivitybythoseresponsibleforaccountingdecisions.D. Management'scurrentplanstoreduceitsownershipequityintheentity. 12.Inassessingtheobjectivityofaclient's

8、internalauditors,theCPAwouldbemostlikelytoconsiderinternalaud