ACCA AA · Chapter 8 · Question 1 of 12
Which of the following is NOT one of the components of an entity's system of internal control under ISA 315?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The external auditor's tests of controls
Explanation
The components are the control environment, the entity's risk assessment process, the entity's process to monitor the system of internal control, the information system and communication, and control activities. The external auditor's testing is part of the audit, not part of the entity's internal control.
More Internal control systems MCQs
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- Q4Which control would best address the objective that goods are only supplied to customers with acceptable credit ratings?
- Q5Which control most directly helps to ensure that all goods dispatched to customers are invoiced?
- Q6What is the main purpose of matching a supplier invoice to the related purchase order and goods received note before payment?
- Q7Which control would best prevent fictitious employees from being added to the payroll?