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NEW QUESTION: 1
Which of the following is not true with respect to the control activities of an entity?
A. Control activities are the policies and procedures that help ensure that management directives are
carried out.
B. An understanding of control activities may be obtained while the auditor is obtaining an understanding
of the other components of internal control.
C. Control activities are the policies and procedures that help ensure that the financial statements are
fairly presented in conformity with generally accepted accounting principles.
D. An understanding of control activities does not require an understanding of control activities related to
each account balance included in the financial statements.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. Control activities are the policies and procedures that help ensure that management
directives are carried out. These policies and procedures may relate to any of the three objectives
(financial reporting, operations, and compliance), not strictly to the financial reporting objective.
Choice "A" is incorrect. Control activities are defined as the policies and procedures that help ensure that
management directives are carried out.
Choice "C" is incorrect. As an auditor obtains an understanding about the other components of internal
control, he or she is also likely to obtain some knowledge about control activities.
Choice "D" is incorrect. Ordinarily, audit planning does not require an understanding of control activities
related to each account balance, transaction class, and disclosure component.

NEW QUESTION: 2
Which of the following is the strongest competitor of Cisco in the WAN optimization market space?
A. F5 Networks
B. Blue Coat Systems
C. Silver Peak Systems
D. Riverbed Technology
Answer: D

NEW QUESTION: 3
In which tool and technique is it possible to find a correlation between dependent and independent variables?
A. Run chart
B. Fishbone diagram
C. Scatter diagram
D. Control chart
Answer: C