QuestionQuestion 1Which of the following frameworks is widely used by managers to organize and evaluate their corporate governance structure?Question 1COSOCOBITSAS No. 94NISTPrevious PageNext PageQuestion 2A responsibility that should be assigned to a specific employee and not shared is that of:Question 2attempting 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 3For control purposes, the quantities of materials ordered may be omitted from the copy of the purchase order which is:Question 3forwarded to the accounting department.forwarded to the receiving department.returned to the requisitioner.retained in the purchasing department’s files.Question 4Which of the following control procedures provides physical protection for a company’s cash asset?Question 4Majority of authorized cash disbursements made by checkDaily cash receipts deposited intact at bankVoucher system for cash disbursementsall of the aboveQuestion 5Which of the following is not a processing control?Question 5Record countsControl totalsCheck digitsHash totalsQuestion 6If 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?Question 6Internal review of controlsSeparation of dutiesCompetent employeesA good audit trailQuestion 7Which of the following fundamental concepts is stressed by the COSO report?Question 7Internal 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 8A periodic review by internal auditors that stresses the evaluation of the efficiency and effectiveness of a department’s procedures is called a (an):Question 8operational audit.management-by-exception audit.financial audit.audit by exception.Question 9Regarding the internal audit function, which of the following statements is true?Question 9Within 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 10Which of the following is not a subcategory of input controls?Question 10Observation, recording and transcription of dataData processingAdditional input controlsEdit tests
