Question 1

The audit committee should be made up of individuals who are independent of the day-to-day management of the public sector entity and who have the necessary program and /or management expertise to perform their review function effectively. The responsibilities of the audit committee should be stated in a _______, _______ or _______that is approved by the full board or governing body of the public sector entity, as appropriate.

Options :

A : Informal, written charter or equivalent document

B : Legal, written charter or equivalent document

C : Formal, verbal charter or equivalent document

D : Formal, written charter or equivalent document

Answer: D

Question 2

The purpose of __________ is to promote an ethical culture in the profession of internal auditing. A ___________ is necessary and appropriate for the profession of internal auditing, founded as it is on the trust placed in its objective assurance about risk management, control, and governance:

Options :

A : Code of ethics, The IIA’s Code of Ethics

B : The IIA’s Code of Ethics, Code of ethics

C : Code of ethics, PPF Code of Ethics

D : PPF Code of Ethics, Code of ethics

Answer: B

Question 3

Integrity violations can have an effect on an organization’s performance and reports of performance, as well as on the financial statements. Specific categories of integrity violations include all of the following given below please choose the correct option:

Options :

A : Abuse is distinct from illegal acts and noncompliance. Abuse occurs when conduct falls short of societal expectations for prudent behavior. Because determining abuse is subjective, auditors are not expected to provide reasonable assurance of detecting it.

B : Noncompliance includes illegal acts, as well as violations of provisions of contract or grant agreements.

C : Fraud is a type of illegal act that involves obtaining something of value through willful misrepresentation

D : All of the above.

Answer: D

Question 4

Management controls are the plans, methods, and procedures adopted by management for measuring, reporting, and monitoring program performance. All of the following are objectives of management control EXCEPT:

Options :

A : Validity and reliability of data.

B : Controlled operations

C : Program operations

D : Compliance with laws and regulations

Answer: B

Question 5

All of the following are questions auditors may ask when testing controls of safeguards over assets and records please choose the correct option:

Options :

A : Is confidential or sensitive information kept separate from other records?

B : Does management provide a favorable control environment in the organization?

C : Does adequate physical security exist over assets and records? Are storerooms locked? Are equipment and inventories properly recorded? Are there adequate environmental controls over assets (e.g., appropriate temperature)?

D : Only A & C

Answer: D

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