Which one of the following is FALSE about Internal Control Evaluation Checklists (ICEC)?

Question breakdown

Tests

Distinguish internal control evaluation tools

Difficulty

Hard

Key idea: An Internal Control Evaluation Checklist is a standalone list of expected controls. It is used to confirm whether those controls exist and was built to address weaknesses of the open-ended Internal Control Questionnaire.

How to reach the answer

1. The stem asks for the FALSE statement, so three options must describe the ICEC accurately.
2. An ICEC was developed to fix shortcomings of the ICQ, so A is accurate.
3. An ICEC is built on different principles from the ICQ, so B is accurate.
4. Its purpose is to check whether desirable controls are present, so C is accurate.
5. Evaluating a system whose information has already been recorded, for example in flowcharts, describes a different evaluation approach, so D is the false statement.

Each option

• AIncorrect. This is a true statement: the checklist format was created to address limitations of the ICQ.
• BIncorrect. This is true: the construction rules for a checklist differ from those for a questionnaire.
• CIncorrect. This is true: the checklist's purpose is to confirm whether expected controls are in place.
• DCorrect. This is the false statement: use after system information has already been recorded belongs to a different evaluation approach, not the checklist.

Common trap: Candidates mix up the checklist with other evaluation tools that are applied after the system has been documented, so D sounds reasonable.

In practice: Auditors choose between checklists, questionnaires and flowcharts based on how well documented the system already is. Using the wrong tool can waste effort or leave control gaps unnoticed.

Remember: An ICEC checks directly whether expected controls exist; it is not a tool reserved for systems that are already recorded.

Drafted with AI assistance and checked against the answer key.