IDRA AIC Bootcamp 2023

Which of the following framework is used to evaluate the design and effectiveness of internal controls?

• COBIT 2019

• COSO Integrated Framework

• ISO 31000 Risk Management

• SOX Section 404

Which one is the right order of COSO Cube component?

• Control Activities, Objective Setting, Event Identification, Information and Communication, Monitoring Activities

• Control Activities, Risk Response, Control Environment, Information and Communication, Monitoring Activities

• Control Environment, Risk Assessment, Control Activities, Information and Communication, Monitoring Activities

• Control Environment, Control Activities, Risk Assessment, Information and Communication, Monitoring Activities

An Organization’s Directors, Management, External Auditors and Internal Auditors all play important roles in creating a proper control environment. Management is primarily responsible for…

• Hires external auditors

• Assess effectiveness and efficiency of business process on regular basis

• Performs financial audit to provide assurance on the financial statements

• Evaluates whether the organization has implemented controls that will achieve the objective of ICFR

The following factors should be considered when Management performing risk assessment, except…

• Number of internal audit projects conducted by Internal Auditors in the previous year.

• Materiality set at the group level and at discrete levels

• The consideration of COSO principle coverage

• Diversity and change in the business environment

The following are example of the internal control, except…

• Monthly review on bank reconciliations

• Dual signatures on all disbursements over a specific amount

• Accountant – GL Financial Closing inputs of accrual journal entry during financial closing

• Procurement policy which govern that purchases should be made from vendor who has been approved by Management and registered in Vendor Master List

What is Management Review Control (MRC)?

• Directive controls that cause or encourage the occurrence of desirable events

• Detective controls that monitor the results of operations and relate to an estimate or the accounting for an infrequent transaction or event

• Preventive controls that deter the occurrence of unwanted events

• Corrective controls that correct the negative effects of unwanted events

Who is the first line of defense in three-line of defense?

To identify significant accounts and disclosures and their relevant assertions, management should evaluate the quantitative and qualitative risk factors related to the financial statement line items and disclosures.

Which of the following is not included in qualitative assessment?

• Materiality on account balance level

• Susceptibility to misstatement due to errors or fraud

• Existence of related party transactions in the account

• Accounting and reporting complexities

What is objective of IT General Control?

• To ensure the internal processing produces the expected results.

• To ensure the input data is complete, accurate and valid.

• To ensure the processing accomplishes the desired tasks.

• To ensure the proper development and implementation of applications