ACCA Advanced Audit and Assurance (AAA) Practice Exam

What is the main purpose of Internal Control Questionnaires (ICQs)?

1. To assess the effectiveness of company marketing strategies.

2. To determine how good the system controls are.

3. To document subjective auditor opinions.

4. To provide a relaxed environment for audits.

The correct answer is: To determine how good the system controls are.

The main purpose of Internal Control Questionnaires (ICQs) is to determine how good the system controls are. ICQs are structured tools used by auditors to gather information about a company’s internal control systems. They typically consist of a series of questions designed to assess the presence and effectiveness of controls within various processes and areas of the business. By using ICQs, auditors can identify areas where controls are strong and functioning as intended, as well as areas where weaknesses or deficiencies may exist. This evaluation is critical for understanding the overall risk profile of the organization and aids in planning the audit approach by focusing attention on higher-risk areas. While marketing strategy effectiveness, the documentation of subjective opinions, and creating a relaxed audit environment are relevant to different aspects of business operations and audit practices, they do not encapsulate the primary role of ICQs. The essence of ICQs lies specifically in assessing internal controls rather than these peripheral considerations.