Question 1

What is the most fupdamental cash control?

Options :

A : segregation of duties

B : use of automated systems

C : analysis of cash reports

D : frequent reconciliation of bank accounts

Answer: D

Question 2

When planning for local government financial statement audit, what data source should the auditor consider first?

Options :

A : government-wide financial statements

B : fund financial statements

C : reconciliations between fund financial statements

D : previous audit findings

Answer: D

Question 3

A capital asset transferred to another department within the same government should be

Options :

A : recorded with the original department to maximize receipts.

B : recorded with the second department to minimize costs.

C :

retained in the government-s fixed asset tracking system with no change in book value to either department.

D :

retained in the government-s fixed asset tracking system showing the book value of the asset transferred to the receiving department.

Answer: D

Question 4

An evaluation of anggntity’s single year financial statements would use which of the following analyses?

Options :

A : comparative

B : horizontal

C : trend

D : vertical

Answer: D

Question 5

Management shoulg consider the cost of internal controls in relationship to

Options :

A : the available budget.

B : inherent risks.

C : benefits provided.

D : risk of collusion.

Answer: C