Reference no: EM132726192

Problem 1. An auditor's primary consideration regarding an entity's internal controls is whether they

a. Prevent management override.

b. Relate to the control environment.

c. Reflect management's philosophy and operating style.

d. Facilitate reliable financial reporting in conformance (in the US) with GAAP

Problem 2. Which of the following statements is true?

a. A properly maintained internal control system reasonably assures that collusion among employees cannot occur.

b. The establishment and maintenance of internal control is an important responsibility of the internal auditor.

c. An exceptionally strong internal control system is enough for the auditor to eliminate substantive procedures on a significant account balance.

d. Management has primary responsibility to maintain adequate internal control over the entity's assets and records.