Which of the following is not an element of the internal control environment?Select one:a.management philosophy and operating styleb.well-designed documents and recordsc.organizational structure of the firmd.the functioning of the board of directors and the audit committee

Which of the following indicates a strong internal control environment?Select one:a.adverse business conditions exist in the industryb.the internal audit group reports to the audit committee of the board of directorsc.there is no segregation of duties between organization functionsd.there are questions about the integrity of management

According to PSA 400, which of the following is correct regarding internal control system?Select one:a.In the audit of financial statements, the auditor is only concerned with those policies and procedures within the accounting and internal control systems that are relevant to the financial statements.b.The internal control system is confined to those matters which relate directly to the functions of the accounting system.c.A strong environment, by itself, ensure the effectiveness of the internal control system.d.Internal control system refers to all the policies and procedures adopted by the auditor to assist in achieving management's objective.

Which one of the following is not an objective of a system of internal controls?Group of answer choicesEnhance the accuracy and reliability of accounting recordsOverstate liabilities in order to be conservativeReduce the risks of errorsSafeguard company assets

Who is responsible for establishing and maintaining the internal control system?Select one:a.the accountantb.the internal auditorc.managementd.the external auditor

Indicate whether the following statement is True or False.Internal control consists of four integrated components, namely control environment, risk assessment, control activities, and information and communication