WorksheetsSession 6 IAP
Total questions: 20
Worksheet time: 10mins
A customer intended to order 100 units of product Z96014, but incorrectly ordered non existent product Z96015. Which of the following controls most likely would detect this error?
Hash total.
Record count.
Redundant data check.
Check digit verification.
The internal audit activity of an organization is an integral part of the organization’s risk management, control, and governance processes because it evaluates and contributes to the improvement of those processes. Select the type of control provided when the internal audit activity conducts a systems development analysis.
Feedback control.
Feedforward control.
Policies and procedures.
Strategic plans.
When a copy of the sale invoice is not received by an organization’s shipping department, an employee requests the document from the proper authority. This process is a(n)
Passive, mitigating control.
Detective, preventive control.
Directive, detective control.
Active, detective control.
Which of the following describes a characteristic of a control matrix?
The data entered into an input field is compared to a table of valid values for that field.
Transactions are accumulated for processing.
Track the number of records processed by the system.
More than one control may be needed to adequately address a single risk.
Within the COSO Internal Control – Integrated Framework, which of the following components is designed to ensure that internal controls continue to operate effectively?
Risk assessment.
Information and communication.
Monitoring.
Control environment.
Which of the following is not implied by the definition of control?
Measurement of progress toward goals.
Indication of the need for corrective action.
Assignment of responsibility for deviations.
Uncovering of deviations from plans.
Which of the following statements about internal control is true?
Exceptionally effective internal control is enough for the organization to achieve objectives.
A limitation of internal control is that management makes judgments about the extent of controls it implements.
The establishment and maintenance of internal control are important responsibilities of the internal auditor.
Properly maintained internal control reasonably ensures that collusion among employees cannot occur.
Which of the following control procedures does an internal auditor expect to find during an engagement to evaluate risk management and insurance?
Policy of repetitive standard journal entries to record insurance expense.
Cutoff procedures with regard to insurance expense reporting.
Periodic internal review of the in-force list to evaluate the adequacy of insurance coverage.
Required approval of all new insurance policies by the organization’s CEO.
Internal control can provide only reasonable assurance that the organization’s objectives will be met efficiently and effectively. One factor limiting the likelihood of achieving those objectives is that
The internal auditor’s primary responsibility is the detection of fraud.
The cost of internal control should not exceed its benefits.
The board is active and independent.
Management monitors performance.
The requirement that purchases be made from suppliers on an approved vendor list is an example of a
Preventive control.
Corrective control.
Detective control.
Monitoring control.
Management’s aggressive attitude toward financial reporting and its emphasis on meeting projected profit goals most likely would significantly influence an entity’s control environment when
Management is dominated by one individual who is also a shareholder.
External policies established by parties outside the entity affect its accounting practices.
Internal auditors have direct access to the board of directors and entity management.
The audit committee is active in overseeing the entity’s financial reporting policies.
Internal control cannot be designed to provide reasonable assurance regarding the achievement of objectives concerning
Reducing the cost of an internal audit.
Mitigation of risk.
Elimination of all fraud.
Availability of reliable data for decision-making purposes and protection of important documents and records.
Which of the entity objectives address effectiveness and efficiency?
Strategic objectives.
Compliance objectives.
Operations objectives.
Reporting objectives.
The policies and procedures helping to ensure that management directives are executed and actions are taken to address risks to achievement of objectives describes
Control activities.
Control environments.
Risk assessments.
Monitoring.
The COBIT 2019 control framework includes which governance system principle?
Alignment with major standards.
Controls for specific IT processes.
Based on a conceptual model.
Dynamic governance system.
Which of the following is an example of a detective control?
The manager is given a check log reconciliation at the close of each business day.
Checks are pre-numbered and kept in a locked cabinet.
The staff accountant was warned about printing a check prior to receiving authorization.
The accounting department has a procedure for voiding and issuing replacement checks.
One objective of IT general controls is to
Ensure that processing results are complete, accurate, and properly distributed.
Give primary consideration to authorization, validation, and error notification.
Ensure the integrity of program and data files and of computer operations.
Design controls based on the management functions of planning, organizing, directing, and controlling.
Managerial control can be divided into feedforward, concurrent, and feedback controls. Which of the following is an example of a feedback control?
Budgeting.
Variance analysis.
Quality control training.
Forecasting inventory needs.
Which of the following is the control component that reflects the attitude and actions of the board and management regarding the significance of control within the organization?
Control activities.
Control environment.
Risk assessment.
Monitoring.
Which of the following is not a type of control?
Reactive.
Directive.
Preventive.
Detective.
