ACCY 360 EXAMINATION TEST 2026
CORE FINANCIAL ACCOUNTING
CONCEPTS AND APPLICATIONS REVIEW
◉ Control activities
Answer: Policies and procedures that help ensure management
directives are carried out.
◉ Information and communication
Answer: Systems that provide and communicate information needed
to support internal control.
◉ Monitoring activities
Answer: Ongoing or separate evaluations to determine whether
controls are present and functioning.
◉ Control environment principles
Answer: Integrity and ethical values, board independence, proper
structure and authority, competent people, and accountability.
◉ Risk assessment principles
,Answer: Clear objectives, identify and analyze risks, consider fraud,
and assess changes affecting control.
◉ Control activity principles
Answer: Develop control activities, develop technology controls, and
deploy through policies and procedures.
◉ Information and communication principles
Answer: Use quality information, communicate internally, and
communicate externally.
◉ Monitoring principles
Answer: Perform evaluations and communicate deficiencies timely.
◉ Examples of control activities
Answer: Performance reviews, physical controls, segregation of
duties, and information processing controls.
◉ Need for an IT specialist
Answer: Complex IT systems, major system changes, shared data, e-
commerce, emerging technologies, and evidence only in electronic
form.
, ◉ Ways to document understanding of internal control
Answer: Procedures manuals, organizational charts, flowcharts,
questionnaires, and narrative descriptions.
◉ Limitations of internal control
Answer: Management override, human error, and collusion.
◉ Substantive strategy
Answer: Set control risk at high and do not rely on controls.
◉ Reasons for substantive strategy
Answer: Controls do not pertain to the assertion, are ineffective, or
are inefficient to test.
◉ Reliance strategy
Answer: Plan to rely on controls and assess control risk lower.
◉ Assessing control risk steps
Answer: Identify controls to rely on, perform tests of controls, and
conclude on achieved control risk.
◉ Tests of controls
CORE FINANCIAL ACCOUNTING
CONCEPTS AND APPLICATIONS REVIEW
◉ Control activities
Answer: Policies and procedures that help ensure management
directives are carried out.
◉ Information and communication
Answer: Systems that provide and communicate information needed
to support internal control.
◉ Monitoring activities
Answer: Ongoing or separate evaluations to determine whether
controls are present and functioning.
◉ Control environment principles
Answer: Integrity and ethical values, board independence, proper
structure and authority, competent people, and accountability.
◉ Risk assessment principles
,Answer: Clear objectives, identify and analyze risks, consider fraud,
and assess changes affecting control.
◉ Control activity principles
Answer: Develop control activities, develop technology controls, and
deploy through policies and procedures.
◉ Information and communication principles
Answer: Use quality information, communicate internally, and
communicate externally.
◉ Monitoring principles
Answer: Perform evaluations and communicate deficiencies timely.
◉ Examples of control activities
Answer: Performance reviews, physical controls, segregation of
duties, and information processing controls.
◉ Need for an IT specialist
Answer: Complex IT systems, major system changes, shared data, e-
commerce, emerging technologies, and evidence only in electronic
form.
, ◉ Ways to document understanding of internal control
Answer: Procedures manuals, organizational charts, flowcharts,
questionnaires, and narrative descriptions.
◉ Limitations of internal control
Answer: Management override, human error, and collusion.
◉ Substantive strategy
Answer: Set control risk at high and do not rely on controls.
◉ Reasons for substantive strategy
Answer: Controls do not pertain to the assertion, are ineffective, or
are inefficient to test.
◉ Reliance strategy
Answer: Plan to rely on controls and assess control risk lower.
◉ Assessing control risk steps
Answer: Identify controls to rely on, perform tests of controls, and
conclude on achieved control risk.
◉ Tests of controls
