Question 1

Which of the following is an example of a directive control?

Options :

A : Segregation of duties

B : Exception reports

C : Training programs,

D : Supervisory review.

Answer: C

Question 2

The internal audit activity is currently working on several engagements, including a consulting engagement on the management process in the human resources department. Which of the following actions should the chief audit executive take to most efficiently and effectively ensure the quality of the engagement?

Options :

A : Assign an experienced manager to monitor the whole engagement process.

B : Employ fieldwork peer review to enhance the work quality.

C : Require internal auditors to follow a standardized work program.

D : Personally supervise the engagement

Answer: B

Question 3

Which of the following statements is true regarding managements use of judgement to design, implement, and conduct internal control

Options :

A :

The use of judgment enhances managements ability to make better decisions about internal control, but cannot guarantee perfect outcomes.

B :

introducing judgment generally diminishes managements ability to make good decisions about internal control

C :

It is inappropriate for management to exercise judgement in areas such as specifying and using suitable accounting principles.

D :

It is inappropriate for management to exercise judgement in assessing whether components are present, functioning, and operating together

Answer: A

Question 4

Which of the following would be the most effective fraud prevention control?

Options :

A : Email alert sent to management for checks issued over S100.000.

B : installation of a video surveillance system in a warehouse prone to inventory loss

C : New hire training to explain fraud and employee misconduct.

D : Daily report that Identifies unsuccessful system log-in attempts

Answer: C

Question 5

Which of the following is most likely to be considered a control weakness?

Options :

A : Vendor invoice payment requests are accompanied by a purchase order and receiving report.

B : Purchase orders are typed by the purchasing department using prenumbered forms

C : Buyers promptly update the official vendor listing as new supplier sources become known.

D : Department managers initiate purchase requests that must be approved by the plant superintendent

Answer: C

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