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

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 3

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 4

Which of the following offers the best explanation of why the auditor in charge would assign a junior auditor to complete a complex part of the audit engagement?

Options :

A : The senior auditors are unavailable, as they are currently working on other portions of the engagement

B : The auditor in charge believes that the junior auditor should obtain a specific type of experience.

C : The audit engagement has a tight deadline and the work must be completed timely.

D :

The auditor in charge is unable to identify audit staff with all of the required skills needed to complete the engagement

Answer: B

Question 5

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

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