CPA Exam - Audit - Internal Control

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  1. What are the primary considerations in assessing the control environment of a client?

    Hint: CHOPPER 
    • Commitment to competency
    • Human resource policies/procedures
    • Organizational structure
    • Participation of those charged w/ governance
    • Philosophy and operating style of mgmt
    • Ethics and integrity
    • Responsibility 
  2. What are the 5 components of internal control?

    Hint: CRIME 
    • Control activities
    • Risk assessment
    • Information & Communication
    • Monitoring
    • Environment 
  3. Segregation of duties is one main control activity. What four main responsibilities need to be segregated from each other?

    Hint: ARCC 
    • Authorization
    • Recording
    • Custody of assets
    • Comparison 
  4. What the the main objectives of Internal Control?

    • Accurate, reliable GAAP F/S
    • Compliance with laws and regulations
    • Effectiveness and Efficiency of operations
  5. What are the four main control activities?

    Hint: PIPS 
    • Performance review policies
    • Information processing
    • Physical controls
    • Segregation of duties
Card Set
CPA Exam - Audit - Internal Control
Audit 2 - Internal Control
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