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communicated this finding in writing to the client’s management and
to those charged with governance. The auditor should
• Question 51 Which of the following statements is correct concerning
an auditor’s communication on internal control related matters noted
in an audit?
• Question 52 Which of the following would not typically be a control
relied upon during an audit?
• Question 53 The auditor would be least likely to be concerned about
internal control as it relates to
• Question 54 When preparing a record of a client’s internal control,
the independent auditor sometimes uses a flowchart, which can best be
described as a
• Question 55 One important reason why a CPA, during the course of
an audit engagement, prepares internal control flowcharts is to
• Question 56 In an audit of financial statements, an auditor’s
primary consideration regarding a control is whether the control
• Question 57 Effective internal control requires organizational
independence of departments. Organizational independence would be
impaired in which of the following situations?
• Question 58 An auditor would most likely be concerned with
controls that provide reasonable assurance about the
• Question 59 Proper segregation of functional responsibilities calls
for separation of the
• Question 60 Which of the following sets of duties would ordinarily
be considered basically incompatible in terms of good internal control?
• Question 61 A primary objective of procedures performed to obtain
an understanding of internal control is to provide an auditor with
• Question 62 Which of the following factors is most likely to affect
the extent of the documentation of the auditor’s understanding of a
client’s system of internal controls?
• Question 63 Walk-throughs provide evidence that helps auditors to
• Question 64 An auditor’s tests of controls over the issuance of raw
materials to production would most likely include
• Question 65 Well functioning internal control for the
inventory/production functions would provide that finished goods are