Test your basic knowledge |

Subject : business-skills
Instructions:
  • Answer 41 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Management Controls Systems over Management Processes - Business Process Control Systems over Business Processes






2. Identify Risks - Identify Management's Response - Asses Residual Risk (Separate What is and is not important)






3. Leadership - integrity - regulatory - technology - financial planning - human resource - operational - information






4. Strategic Risk Analysis (external focus)






5. Examine internal control as part of audit process to determine reliability of info processing related to transactions - and to access control risk involving (management decision making - process monitoring - compliance)






6. The susceptibility of the financial statements to material error assuming no internal control






7. Pinpoints problems that show up in financial results - may suggest financial misstatements - may raise concerns about the viability of the company - may indicate a potential threat to the internal control environment - may highlight potential client






8. Authorization(relates to ownership and existence) - Existence - Completeness - Accuracy (relates to valuation) - Timing (relates to completeness) - Posting and Summarization (relates to valuation)






9. Competitive Environment - Management or Employee Improper or Incompetent Actions - Process Breakdowns Within Organization - Inaccurate Processing of Information






10. Most of the reference to risk concerns the company's risk of survival and includes any threat to an organization that reduces the likelihood that the organization will achieve one or more of its objectives. It is measured in terms of probability (lik






11. Assessment of whether a client's internal control structure is effective for preventing and/or detecting errors






12. Control over the organization by individuals external to org(customers - suppliers - board of directors - regulatory agencies - external audits - owners)






13. Responsible for giving an opinion of management's report on internal control - and must assess if the client's internal controls being used to effectively control risks






14. Assess the impact of process risks and the associated internal controls - Risk Identification - Risk Mitigation - Risk Monitoring






15. Residual Risk Analysis (linkage of risk to audit objectives)






16. Risk Assessment - Response by Management - Information Reliability - Performance Results - Reaction by Management






17. Process designed by management to provide reasonable insurance - within economic limits - that the organization's objectives are being met






18. Control Environment - Risk Assessment - Control Activities - Information and Communication - Monitoring






19. Diagnosticity - objectivity






20. Markets - Competitors(adv/dis) - Resources - Internal Processes - External Agents - Strategic Partners - low cost or diff - broad or narrow group of consumers






21. Authorization - adequate documents and records - safeguarding of assets and records - independent checks on performance - separation of duties






22. Auditors primary concern - most likely source of problems - reflect current conditions of threats - reflect areas where the auditor needs to focus most of auditing efforts






23. Risk that the auditor is willing to take that the financial statements are not fairly stated after the quit






24. Organizational Business Models - External Threat Analysis






25. Must state their responsibilities for establishing and maintaining internal controls and report on an evaluation of effectiveness of the controls within 90 days prior to periodic reports - state that signing officers have disclosed to auditors and c






26. Process Risk Analysis (internal focus)






27. A process - management's responsibility - provides reasonable assurance to to inherent limitations (human failure - collusion - bypassing of control by senior management)






28. Industry (competitors - potential entrants - substitutes - suppliers - customers) - Macro environmental Forces (Political - Economic - Social - Technological)






29. Avoidance (of activities) - Acceptance (inevitable - unavoidable) - Insurance (transferred through assurance or risk sharing) - Reduction (by implementing proactive procedures-internal control)






30. Authorization - Independent Checks on Performance - Separation of Duties - Physical Control of Assets and Records - Adequate Documents and Records






31. Planned Detection Risk - Acceptable Audit Risk - Inherent Risk - Control Risk






32. Risk the auditor is willing to take that the audit procedures will fail to find material errors that were not detected by internal control






33. Failure to communicate mission and objectives - Inaccurate or out of date assumptions - Undue focus on current conditions - Rigid organizational structure - Failure to enforce accountability - Communication breakdowns






34. Process Objectives(statement of what the process is trying to achieve) - Process Activities(reflect actions and steps performed to accomplish process objectives) - Process Data Streams(Information need and outputs of the process) - Accounting Impact






35. Identifies measures of performance to assess whether process risks are and immediate threat






36. Existence/Occurrence - Rights/Obligations - Valuation/Allocation - Completeness - Presentation/Disclosure






37. Its a systematic and continuous process. Risk management is iterative where control is temporary and depends on current circumstances - not a permanent condition






38. Documentation or Inspection of Records and Documents -Observation -Physical Examination or Inspection of Tangible Assets -Client Inquiry (do not use Independent Inquiry) -Confirmation -Recalculation and Reperformance -Analytical Procedures






39. Process Map(outlines each process) - Internal Threat Analysis(analyze each process) - Process(an organized unit within the company that has to accomplish a goal set by management) - Audit-Sensitive Processes(based on assessment auditor identifies cri






40. Activities performed by senior management including strategic direction and planning and evaluating the overall performance of the organization by providing feedback about potential problems or risks that should be addressed






41. Assess probability of the event happening and potential damage - Consider whether internal controls have mitigated the inherent problems of the risk - Identify the high residual risks that will be major focus of audit