1.   Internal control is a process effected by an entity\'s board of directors, management, and other personnel that is designed to provide reasonable assurance regarding the achievement of objectives. (True/False)
2.   What are the two main objectives for conducting preliminary analytical procedures?
3.   List the two types of audit tests.
4.   List three factors that affect an organization\'s control environment.
Solution
1. False because Internal control , as defined in accounting and auditing, is a process for assuring achievement of an organization\'s objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.
2. - Helps the auditor to better understand the business.
- Assists with the planning of the nature, timing, and extent of audit procedures.
3. a) Risk Assessment Procedures
b) Test of Controls
c) Substantive Tests of Transactions
d) Analytical Procedures
e) Tests of Details of Balances
4. a) Integrity and ethical values
b) Management
.
1- Internal control is a process effected by an entity-'s board of dir.docx
1. 1.   Internal control is a process effected by an entity's board of directors, management,
and other personnel that is designed to provide reasonable assurance regarding the achievement
of objectives. (True/False)
2.   What are the two main objectives for conducting preliminary analytical procedures?
3.   List the two types of audit tests.
4.   List three factors that affect an organization's control environment.
Solution
1. False because Internal control , as defined in accounting and auditing, is a process for
assuring achievement of an organization's objectives in operational effectiveness and efficiency,
reliable financial reporting, and compliance with laws, regulations and policies.
2. - Helps the auditor to better understand the business.
- Assists with the planning of the nature, timing, and extent of audit procedures.
3. a) Risk Assessment Procedures
b) Test of Controls
c) Substantive Tests of Transactions
d) Analytical Procedures
e) Tests of Details of Balances
4. a) Integrity and ethical values
b) Management
