Question 1

Which of the following is an example of an internal control weakness?

Options :

A : The contract department staff awards contracts and maintains a database for vendor information.

B :

Management policy allows project managers to oversee controls of companies in which they have a material interest.

C :

The budget department staff is responsible for preparing the budget and for reporting on budget cost variances.

D :

The accounting department has one clerk prepare vendor payments and another clerk reconcile bank accounts.

Answer: B

Question 2

The goal of shared gervices is to

Options :

A : reduce current staffing levels.

B : transfer responsibilities to another entity.

C : efficiently aggregate resources.

D : provide private business opportunities.

Answer: C

Question 3

Which of the following would auditors issue an opinion on?

Options :

A : performance audits

B : compliance audits

C : financial statement audits

D : forensic audits

Answer: C

Question 4

Management shoulg consider the cost of internal controls in relationship to

Options :

A : the available budget.

B : inherent risks.

C : benefits provided.

D : risk of collusion.

Answer: C

Question 5

All of the following represent selection criteria used to make contract awards EXCEPT contractor

Options :

A : staff expertise.

B : past performance records.

C : union affiliations.

D : financial position.

Answer: C

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