ICAEW ARF · Chapter 4 · Question 1 of 12
Which of the following is NOT a component of an entity's system of internal control?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The external auditor's substantive procedures
Explanation
The components of internal control are the control environment, the entity's risk assessment process, its process to monitor internal control, the information system and communication, and control activities. The external auditor's procedures are part of the audit, not part of the entity's own internal control.
More Internal control systems and IT controls MCQs
- Q3Which of the following is a detective control rather than a preventive control?
- Q4Which of the following combinations of duties shows the most serious lack of segregation of duties?
- Q5Which of the following is an IT general control?
- Q6A computerised sales system performs a sequence check on sales invoice numbers. What is the main purpose of this control?
- Q7Two cheque signatories, each required to approve every payment, agree together to sign payments to a fictitious supplier they have set up…