Assignment
Question 1
Which of the following frameworks is widely used by managers to organize and evaluate their corporate governance structure?
COSO
COBIT
SAS No. 94
NIST
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Question 2
A responsibility that should be assigned to a specific employee and not shared is that of:
attempting to collect a particular delinquent account.
access to the company's safe deposit box.
custodianship of the petty cash fund.
placing orders and maintaining relationships with a prime supplier.
Question 3
For control purposes, the quantities of materials ordered may be omitted from the copy of the purchase order which is:
forwarded to the accounting department.
forwarded to the receiving department.
returned to the requisitioner.
retained in the purchasing department's files.
Question 4
Which of the following control procedures provides physical protection for a company's cash asset?
Majority of authorized cash disbursements made by check
Daily cash receipts deposited intact at bank
Voucher system for cash disbursements
all of the above
Question 5
Which of the following is not a processing control?
Record counts
Control totals
Check digits
Hash totals
Question 6
If the same employee is responsible for authorizing a business transaction and recording the transaction in the accounting records, this indicates a weakness in which element of a company's internal control system?
Internal review of controls
Separation of duties
Competent employees
A good audit trail
Question 7
Which of the following fundamental concepts is stressed by the COSO report?
Internal control is not affected by people.
Internal control is geared to the achievement of a company's objectives in the financial reporting area only.
Internal control is designed to detect all errors and irregularities that occur within a company's system.
Internal control is a process.
Question 8
A periodic review by internal auditors that stresses the evaluation of the efficiency and effectiveness of a department's procedures is called a (an):
operational audit.
management-by-exception audit.
financial audit.
audit by exception.
Question 9
Regarding the internal audit function, which of the following statements is true?
Within a company's system, it is preferable to establish the internal audit function as a separate subsystem.
Since many internal auditors have accounting backgrounds, the internal audit function should ideally be included within a company's accounting subsystem.
Because of the independence of external auditors, they should never accept previous work of evaluating controls performed by a company's internal auditors.
It is not proper for internal auditors to perform a fraud investigation within any part of their company's system.
Question 10
Which of the following is not a subcategory of input controls?
Observation, recording and transcription of data
Data processing
Additional input controls
Edit tests.