Skip to content

CMA Intermediate · Corporate Accounting and Auditing · Audit Risk, Internal Control, Internal Check and Internal Audit

According to SA 315, control activities are best described as:

Control activities are the policies and procedures that help ensure management directives are carried out. They operate in IT or manual systems at various organisational and functional levels. Determining risks to be managed is the risk assessment process, not control activities.

  1. AThe policies and procedures that help ensure that management directives are carried outCorrect
  2. BThe process by which management determines the risks to be managed
  3. CThe auditor's tests performed to detect material misstatements in account balances
  4. DThe framework the entity must use to classify its controls into five components

Explanation

SA 315 describes control activities as the policies and procedures that help ensure management directives are carried out, applied within IT or manual systems at various organisational and functional levels. The risk determination process is the risk assessment component. The five-component division is a framework for the auditor and does not dictate how the entity classifies controls.

Did you get it right without looking?

One question tells you little. A timed set on Audit Risk, Internal Control, Internal Check and Internal Audit shows your real accuracy, how long you take and where you lose marks.

Practise Audit Risk, Internal Control, Internal Check and Internal AuditFree diagnostic mock

More Audit Risk, Internal Control, Internal Check and Internal Audit questions