26. When would manual IT controls be more effective than automated IT controls?

	A.	When the organization has recurring or high-volume transactions.
	B.	When errors are predictable or easy to anticipate.
	C.	When control responses are inside the scope of an automated control.
	D.	When judgment and discretion are needed.

27. An organization's financial reporting system is part of which component of internal control?

	A.	Control environment.
	B.	Information and communication.
	C.	Risk assessment.
	D.	Monitoring.

28. When obtaining an understanding of the financial reporting system, the auditor should identify transactions that are which of the following?

	A.	Low risk.
	B.	Immaterial.
	C.	Low volume.
	D.	Significant.

29. The policies and procedures used to help ensure that management's directives are carried out are called what?

	A.	Activity-level controls.
	B.	Control activities.
	C.	Entity-level controls.
	D.	Walkthroughs.

30. An auditor's understanding of control activities should do what?

	A.	Cover all of the control activities that relate to each class of transactions used by the organization.
	B.	Cover the control activities needed to assess the risk of material misstatement at the relevant assertion level.
	C.	Eliminate the need for auditors to perform further audit procedures in response to risks related to those control activities.
	D.	Enable the auditor to complete an internal control questionnaire for all material account balances and transaction classes.