Skip to content

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

Under SA 315, the extent and nature of the risks to internal control vary depending on:

The extent and nature of risks to internal control vary with the nature and characteristics of the entity's information system. The entity responds by setting up effective controls suited to those characteristics, whether the risks arise from IT use or from manual elements in its controls.

  1. AThe number of shareholders of the entity
  2. BThe nature and characteristics of the entity's information systemCorrect
  3. CThe audit fee agreed for the engagement
  4. DThe date of the auditor's appointment

Explanation

SA 315 states that the extent and nature of the risks to internal control vary depending on the nature and characteristics of the entity's information system. The entity responds by establishing effective controls in light of those characteristics. Shareholder count, audit fees and appointment date are not stated determinants.

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