Statements Answer

$1.$ Under COSO, the control environment, risk assessment, the accounting information and communication system, control activities and monitoring are referred to as the $\_\_\_\_\_\_\_\_\_\_$ of internal control.

$2.$ The Foreign Corrupt Practices Act of $1977$ prohibits $\_\_\_\_\_\_\_\_\_\_$ to foreign officials to obtain business and requires companies to maintain an effective system of internal control.

$3.$ No single employee in a company should have incompatible $\_\_\_\_\_\_\_\_\_\_$ allowing the employee to both perpetrate and conceal errors or fraud in the normal course of performing his or her job.

$4.$ The two broad categories of information processing controls are $\_\_\_\_\_\_\_\_\_\_$ and application controls.

$5.$ Controls that rely on segregation of duties may be circumvented by $\_\_\_\_\_\_\_\_\_\_$ among employees.

$6.$ A client's $\_\_\_\_\_\_\_\_\_\_$ environment includes such components as management philosophy and operating style, and organizational structure.

$7.$ A form of insurance in which an insurance company agrees to reimburse an employer for losses attributable to employee theft is referred to as $\_\_\_\_\_\_\_\_\_\_.$

$8.$ The auditors of a service organization, known as service auditors, may review the controls at the organization and issue a report that may be relied upon by $\_\_\_\_\_\_\_\_\_\_$ auditors.

$9.$ Auditors are required by professional standards to communicate $\_\_\_\_\_\_\_\_\_\_$ and material weaknesses to the audit committee.

$10.$ One or more $\_\_\_\_\_\_\_\_\_\_$ in internal control result in an adverse opinion on internal control.