Question 1

The characteristics of ____________ will vary based on the _____ of the audit unit and the nature of its work. Where as The frequency of required quality assurance reviews varies based on the _____ of standards followed.

Options :

A : Internal quality control systems, size, type

B : External quality control systems, size, type

C : External quality control systems, quality, type

D : Internal quality control systems, length, type

Answer: A

Question 2

Generally, sample size needs to be increased under the following circumstances EXCEPT:

Options :

A : As the population increases.

B : As the expected error rate increases

C : When the population increases.

D : As variability within the population increases.

Answer: C

Question 3

Systems software consists of computer programs and related routines that control computer processing. Control techniques for systems software include all of the following EXCEPT:

Options :

A : Securing dial-up lines for access to computer resources.

B : Setting appropriate system parameters and security options for operating systems.

C : Controlling procurement and maintenance of software licenses.

D : Using the security features of security software effectively.

Answer: A

Question 4

Investment risk refers to the likelihood of a loss. All of the following given below are types of investment risk EXCEPT.

Options :

A : Liquidity risk — losses resulting because invested dollars cannot be accessed. Losses may occur from penalties for early withdrawal, for example.

B : Economic Risks – one of the most obvious risks of investing is that the economy can go bad

C : Default risk — the possibility of a loss resulting from the bankruptcy of an organization in which funds were invested.

D : Market risk — the possibility of a loss resulting from choosing a relatively poor investment from a large pool of investments.

Answer: B

Question 5

The purpose of the external quality control review is to determine whether the organization’s internal quality control system is in place and operating effectively to provide reasonable assurance that established policies and procedures and applicable auditing standards are being followed.

Options :

A : Quality control, Quantity control

B : Internal quality control system, External quality control

C : External quality control, Internal quality control system

D : Quantity control, Quantity control

Answer: C

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