The internal control system comprise of the ........................... And ..................................

Internal Control may be incorporated within the................................... System

Which of the following are the key objectives of Internal Control System?

Select the best answer.

A. Prevention and Detection of Fraud and Error

B. The timely preparation of reliable financial information system

C. The accuracy and completeness of the accounting records

D. The safeguarding of Assets

E. All of the above.

The Control environment is the overall .................... , ................ And .................... Of Directors and management regarding internal control and their importance in the entry -

A. Awareness

B. Attitude

C. Action

D. Reaction

E. Interest

......................... Provide the background against which the various other controls are operated.

.................. Are those policies and procedures in addition to the control environment which are established to achieve the entity’s specific objectives.

Which of the following are the Classifications of internal control procedure?

Select the best answer.

A. Administration

B. Accounting

C. Prevent

D. Detect

E. Correct

F. All of the above

G. None of the above.

Control Design to prevent errors from happening in the first place. I.e. Checking invoices from suppliers against goods received notes before paying the invoices. This is the example of ..................... Control.

Designed identify errors once they have happened. I.e. Bank reconciliation and physical checks of inventory against inventory records. Are example of .............................. Control procedure.

...................... Controls are designed to minimize or negate the defect of errors...

E.g. back up of computer input at the end of the day.

.......................... Control is required by law and imposed by external authorities.

.................... Controls are provided automatically by the system and cannot be overridden. E.g. entering a pin in ATM

A .................... Is a list that is drawn up before any processing takes place?

Acknowledgment of work means Person who carries out a particular job should acknowledge their work by getting the signature of its senior manager

Funds and property of the company should be kept under proper custody. Access to assets should be limited to........................

................. Is a part of internal control system?

Internal Audit need is depending on the following (state which is the wrong one.)

Internal Auditors seeks to monitor the financial activity of a company only.

Operation Audit is also known as management, efficiency or value for money audit.

........................ Objective is to monitoring of management's performance at every level to ensure optimal functioning according to pre determine data.

........................ Is based on a testing and evaluation of the internal controls within an organization so that those controls may be relied on to ensure that resources are being managed effectively and information provided accurately.

Which of the following is not a type of Internal Audit?

A. Management Investigation

B. Operational Audit

C. Legal Audit

D. Transactions Audit

E. Social Audit.

F. System Audit.

............................ Seeks evidence that the internal controls are being applied as prescribed.

........................... Test is used to check the entries in the figures in accounts. They are used to discover errors and omissions.

A Transactions or Probity Audit aims to detect fraud and uses only substantive tests.

Internal Auditors are Answerable and Accountable to...................

This is wrong Perception that Independence is vital for the work and productivity for Internal Auditors.

External Auditor has a much wider scope then the Internal Auditors.

External Auditors works relates to the Operations of the Organization.

The external auditors do not have a specific duty to detect fraud.

A .............. Can be maintained of unauthorized attempts to gain access to a computer system.

It is in practice.................... To prevent all threats cost effectively.

Physical access control is design to prevent...................... Getting near to computer equipment or storage media.

An ................... Is a record showing who has accessed a computer system and what operations he has perform.

The internal auditors are not required to consider fraud.

The intention of the Audit Trial is to ..................... And.....................

A. Detect Fraud

B. Detect input and output record

C. Identify User

D. Identify errors

E. System performance.

An Audit trial should be provided so that every transaction on a file contain a...........................

Archiving provide a legally acceptable ......................... While freeing up.......................

A. Accountability

B. Password

C. Business History

D. Employees time

E. Hard disk space.

Archiving mean moving data from primary storage to..........................

A Contingency is an unscheduled interruption of computing services that requires measures outside the day to day routine operation procedure.

A …………………………….. Audit aims to detect fraud and uses only substantive tests.

To whom is the external auditor primarily accountable?

An organization has a policy of checking all invoices from suppliers against goods received notes before paying the invoices. This is an example of what type of control procedure?

Below are few factors that influenced the control environment. Which of the following one is incorrect?

Control Environment.

Which of the two control classifications are related to reduce of risk associated to computer environment?

A. General

B. Application

C. Manual

D. Voluntary

……………………….are the controls which are subject to human discretion.

Arithmetical internal check includes the following three steps. Which of the following is not correct?

The main responsibility of the external auditor is to ensure that the financial statements of the client are -

External auditor should also see whether the management and the directors has act on the recommendations of the internal auditors in their report about the weakness and other areas of the company.

One of the main responsibilities of the external auditor is to ensure that company complies with the regulations relating to preparing the financial statement on time and submit the copy to the govt. authorities.

Substantive test are tests by an auditor to establish whether a figure in the financial statement is correct or not.

Physical threats to computer security may be natural or man made.

Destruction of data can be even more costly than the destruction of hardware. Company data is more important than hardware.

Physical access of intruders to the computer equipment and data can be control by the following way. State the one incorrect?

Modern computer equipment's are safe from theft due to their extra large size.

Which of the following two are the most important aspect of physical access control to the computer equipment.

A. Personal control like security guards or watch man etc.

B. Door locks

C. Card entry system

D. Intruders Alarms

…………………….in the context of security is preserved when data is the same as in source documents and has not been accidentally or intentionally altered destroyed or disclosed.

…………………………….. Mean a same data in two or more places. System database through data integration reduce/delete duplicate data.

Back-up control in computer data protection aims to maintain system and data integrity.

A ……………………….can provide a restorable history from one day to several years, depending on the needs of the business.

The key objective of the internal Audit is to protect and report for the benefits of the stakeholders.