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Dear sir
Could you please give reason of Mcq question
1) Which of the following method of recording an accounting and control system is a series of questions used to determine whether controls exist which meet specific control objectives ?
A Internal control questionnaire
B Internal control evalution questionnaireANS – A
Another but same relative Mcq question
2)Which of the following describes interal control questionnaires?
A They address control procedures ; a ‘yes’ answer implies good internal control.
B They address control objectives ;a ‘yes’ answer implies good internal control.
Answer is AI couldnot understand that ICQ IS OBJECTIVE OR PROCEDURES .
OR IT DEPENDS UPON how question is examine?Thank you .
Q1 Answer A. Correct. An ICQ asks very specific questions such as “Are times sheets authorised by the employees’ manager?”. The answer “Yes” means that the internal control procedure seems to be present. Here is meets the control objective of ensuring that wages are paid only for hours worked.
Q2 Answer A is correct (as explained above).
A question addressing control objectives would be “Are wages paid only for time worked?”. This question does not mention specific control procedures – only the objective. This objective could be met by the manager authorising the time sheet, some sort of clocking-in/out system, or possibly in the future, some sort of automatic face-tracking analysis system that watches everyone in the factory! Not so much Big Brother as Big Boss.
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