14 April 2021- TEST MCQ - SKG01 (Finance) SGDP: IA Framework

Which of the following risks are difficult to quantify?

• Credit

• Trading

• Finance

• Reputation

Which of the following statement is TRUE?

• In any organization, management must eliminate risk inherent in its activities at ALL cost

• Identifying risk is not necessary in order to perform an internal audit

• Responsibility to manage risk lies with each and every individual in the organisation

• Recording revenue before a sale transaction has occurred should be encouraged to maximize profits of the company and meets targets

The following are COSO internal control framework components EXCEPT:

• Control Environment

• Shareholders

• Control Activities

• Monitoring Activities

Business controls = Internal controls

• True

• False

Management adopts a balanced and pragmatic approach to grow the business, taking calculated risk based on a sound assessment of market conditions and business capabilities and pursuing short and long-term objectives which are realistic and achievable. This approach reflects which COSO control component?

• Control Environment

• Monitoring Activities

• Control Activities

• Risk Assessment

Which of the following is NOT a duty or function of the Audit Committee?

• To detect, investigate and take appropriate action on

  fraudulent malpractices committed by members of management

• To review with management the audited statutory year-end

  financial statements from external audit prior to approval by the Board

• To evaluate the adequacy and effectiveness of the internal control system through a review of the reports of auditor’s of the system.

• To review the internal audit plans, processes, consider the major findings of the internal audits, management’s response and whether or not appropriate action is taken on the recommendations of the internal audit function.

The internal component of the Corporate Governance Model

comprises the following:

I Board of Directors

II Management

III Shareholders

IV Audit Committee

• I and IV

• I, II and III

• All of the above

• I, II and IV

Which of the following DOES NOT describe corporate governance?

• The system (process & structure) by which business corporations are directed and controlled

• Ultimate objective - realising long term shareholder value, whilst taking into account other stakeholders’ interest.

• Towards higher standards of credibility, integrity and performance

• An independent, objective assurance and consulting activity designed to add value and improve an organisation's operations.

FUNCTIONALLY, PETRONAS Group Internal Audit reports directly to President and CEO of PETRONAS.

• True

• False

____________________ is used by auditee management to report to GIA on a quarterly basis the status of the agreed corrective actions.

• Audit Effectiveness Survey (AES)

• Quarterly Audit Status Report (QASR)

• Post Audit Review (PAR)

• Audit Planning Memorandum (APM)