Internal Controls & Audit Processes Flashcards
7 cards from real GRC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Internal Controls & Audit Processes flashcards as text
Which control type is designed to detect errors or irregularities AFTER they have occurred?
Answer: Detective control
Detective controls identify problems after they occur, such as reconciliations and audits.
The COSO Internal Control framework consists of how many components?
Answer: 5
COSO identifies five components: Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring.
An audit committee is PRIMARILY responsible for:
Answer: Overseeing the external and internal audit functions
The audit committee provides independent oversight of financial reporting and both internal and external audit activities.
Which of the following best describes 'tone at the top'?
Answer: Management's commitment to ethics and internal controls that sets the cultural tone
Tone at the top refers to senior leadership's demonstrated commitment to ethical behavior and robust internal controls.
What does 'control self-assessment' (CSA) involve?
Answer: Management and staff evaluating the effectiveness of their own controls
CSA is a technique where operational staff and management assess control effectiveness within their own units.
A walkthrough in an audit context is used to:
Answer: Trace a transaction from initiation to recording to verify controls work as described
A walkthrough traces a single transaction end-to-end to confirm that described controls are actually operating.
Which element is LEAST likely to be part of an internal audit charter?
Answer: Detailed salaries of internal auditors
The internal audit charter establishes authority, scope, and independence but does not include compensation details.