Audit Sampling, IT, Expert, CG

According to Bursa Malaysia, what is the minimum composition of independent directors on a listed company’s board?

• One director must be independent

• Half of the board

• At least two or one-third, whichever is higher

• Majority must be independent and under 40 years old

Which of the following best describes the function of the Audit Committee?

• Manage day-to-day operations

• Approve director compensation

• Provide assurance on internal controls and act as communication between auditors and board

• Supervise all staff training

Which of the following is a requirement for audit committee membership under Bursa Malaysia?

• Must be led by the company’s CEO

• Majority of members must be executive directors

• At least one member must be a qualified accountant (MIA member or equivalent)

• Members must have prior experience in corporate litigation

Which of the following is an example of an application control?

• Access security for server room

• Password protection on system login

• Data validation and capture in the accounting system

• Antivirus software installation

Which statement best describes auditing around the computer?

• Auditor writes their own simulation program

• Auditor compares input with output without reviewing the system processing

• Auditor uses CAAT to validate master file data

• Auditor reviews flowchart and software documentation

What is the main purpose of CAATs in auditing?

•  To manage internal controls in the company

• To replace manual testing with entirely automated testing

• To assist auditors in analyzing large volumes of electronic data

• o help management detect fraud

Which of the following is NOT a general control in the CIS environment?

•  Access security control

• Data center operations

• Data validation checks

• System software acquisition controls

What is a characteristic of a CIS environment that may affect audit risk?

• Manual processing of accounting records

• Complete transaction trails in printed form

• Lack of segregation of duties due to system automation

• Infrequent use of technology in business operations

Which of the following is NOT a factor the external auditor must consider when evaluating whether to use the work of internal auditors?

• The competence of the internal auditors

• The cost-saving benefit of using internal audit

• The objectivity of the internal auditors

• The scope of internal audit work

Which of the following can be assigned to internal auditors when used by the external auditor?

• Making final audit decisions on financial statement estimates

• Performing tests of compliance with laws and regulations

• Designing unpredictable audit procedures

• Assessing risks of material misstatement