Qusetion: Need Help on questions in solving its correct answers:
1. Which of the following is not considered part of a company's "Monitoring"activities (as defined by COSO)?
I. Regluar management & supervisory activities.
II. Comparison activities.
III. Fraud prevention & detection activities.
IV. Management self-control assessment
a. Only iV is not a part of monitoring activities.
b. Only I and III are not a part of monitoring activities.
c. Only II is not part of moiitoring activities.
d. None of the above (all listed activities are part of monitoring)
2. Which of the following is the least accurate regarding risk management?
a. Should consider impact and likelihood to determine "critical" risks
b. Is a fairly subjective process requiring sound judgment
c. Are typically not formally performed by operations management
d. Requires consideration of inherent risk factors and risk control analysis.
e. Residual risk is what remains of inherent risks after internal controls are put in place
3. Evaluation of ICFR includes which of the following financial reporting assertions (objectives):
I. Occurrence
II. Safeguarding
III Completeness
IV. Valuation
a. Only I, II and III are relevant
b. Only I, III and IV are relevant
c. Only II, III and IV are relevant
d. All of the above
4. A major purpose of the International Standards for the Professional Practice of Internal Auditing
is to:
a. Promote the coordination of internal and external audit efforts
b. Develop a consistency in internal audit practices.
c. Establish a basis for the evaluation of internal audit performance
d. Provide a codification of existing practices
5. Appropriate internal control for a multinational corporation's branch office that has a
department responsible for the transfer of money requires that:
a. The individual who initiates wire transfers does not reconcile the bank statement.
b. The branch manager receives all wire transfers.
c. Foreign currency rates be computed separately by two different employees
d. Corporate management approves the hiring of monetary transfer unit employees.
6. If all other factors specified in an attribute sampling plan remain constant, changing the
expected population deviation rate from 1% to 2% and changing the tolerable deviation rate from
7% to 6% would cause the required sample to;
a. Increase
b. Decrease
c. Remain the same
d. Change by 2%
7. The New York Stock Exahange does not requires listed companies to have an internal auditing function.
TRUE
FALSE
8. Sarbanes Oxley Act requires listed companies to disclose whether it has a "financial expert" on its audit committee
TRUE
FALSE
9. The IIA's Professional Practices Framework requires the CAE to periodically report to senior management and the board of
directors on internal audit's activities.
TRUE
FALSE
10. In audits of a business process, there is little value in testing the operating effectiveness of controls that are inadeuately
designed
TRUE
FALSE
11. Which of the following statements about internal control is incorrect, based on the COSO framework?
a. Internal controls starts with a strong set of policies and procedures.
b. Risk assessment and control activities are two of the compoments of the COSO model. .
c. Internal control can be expected to provide only reasonable assurance that business objectives will be achieved.
d. Monitoring of a company's internal controls are acoomplished with ongoing supervision and independent reviews.