According to the training, what is the primary reason for implementing strong internal controls for a client?

To generate more billable hours by adding complex new services.

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To protect the client from fraud and errors, and to make the advisory role more efficient and valuable.

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To ensure the business is ready to be sold at a moment's notice.

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To make the client's business seem more professional to outsiders.

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The Fraud Triangle consists of Opportunity, Pressure, and Rationalization. Which element do CAS advisors have the most direct control over?

Rationalization

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Pressure

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All three equally

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Opportunity

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A company policy requires a manager to approve all purchase orders before an employee can buy new equipment. What type of control is this?

Preventive Control

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Compliance Control

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Corrective Control

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Detective Control

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For a very small, two-person company where perfect Segregation of Duties is impossible, what becomes the most crucial ‘compensating control’?

Hiring a third person immediately to handle payments.

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Using a more advanced accounting software with AI features.

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Requiring all payments to be made by physical check instead of electronically.

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The owner's detailed review of the bank reconciliation and financials prepared by the CAS firm.

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What is the ‘Golden Rule’ of workpaper standards?

Every workpaper must be reviewed and signed off by two different managers.

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A new staff member should be able to understand the workpaper and agree with the conclusion without asking any questions.

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The workpaper should be completed within 24 hours of the work being performed.

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All source data must be saved as a PDF and attached to the Excel file.

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Staff and Senior Training Track – Internal Controls

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