Question 1

The internal audit activity is responsible for which of the following actions related to an organization’s internal controls9

Options :

A : Mitigating risks affecting achievement of organizational objectives.

B : Enabling opportunities affecting achievement of organizational objectives.

C : Analyzing and advising regarding costs versus benefits of control activities.

D : Attesting to fairness of financial statements

Answer: C

Question 2

An internal auditor has discovered that duplicate payments were made to one vendor Management has recouped the duplicate payments as a corrective action Which of the following describes managements action in this case?

Options :

A : A condition-based action plan

B : A cause-based action plan.

C : A root cause-based action plan.

D : An effect-based action plan.

Answer: D

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

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 5

Which of the following statements is true regarding partnership liquidation?

Options :

A : Operations can continue after the liquidation, if all partners agree.

B : Partnership liquidation ends both the legal and economic life of an entity

C : Partnership liquidation occurs when there is capital deficiency.

D : When a partnership Is liquidated, each partner pays creditors from cash received

Answer: B

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