WorksheetsKaplan - BT Mock 6 (chap 16-18)
Total questions: 48
Worksheet time: 49mins
Name
Class
Date
1.
In Internal control,ensuring that a single task is not executed by one person completely, but also is checked by another
a)
Division of authority
b)
Internal check
c)
Teamwork
d)
Shared responsibility
2.
A company's internal controls can be so well designed that they eliminate risk of failing to achieve company's objective
a)
True
b)
False
3.
The purpose of internal control does not include
a)
safeguarding assets
b)
detection of fraud and error
c)
timely preparation of reliable financial statements
d)
none of the above
4.
Components of internal control as per the COSO framework does not include
a)
Secured data interchange
b)
Control environment
c)
Control activities
d)
Risk assessment process
5.
The possibility of an event happening that could adverselt affect the company from achieving it's objectives is known as
a)
Business risk
b)
FInancial system risk
c)
Uncertainty
d)
Macro environment negativity
6.
The internal control of having security officers at the entrance and exit of a bank relates to
a)
Authorization
b)
Physical control
c)
Segregation of duties
d)
Comparison
7.
Splitting a transaction to three elements namely authorization, recording and maintaining custody of assets is
a)
Authorization
b)
Computer controls
c)
Segregation of duties
d)
Comparison
8.
Checking for calculation and computational errors in books is related to
a)
Comparison
b)
Computer controls
c)
Arithmetical controls
d)
None of the above
9.
Types of internal controls does not include
a)
Preventive controls
b)
Monitoring controls
c)
Detective controls
d)
Corrective controls
10.
Internal audit is a necessary cost that must be incurred by a company and offers few tangible benefits for the company
a)
True
b)
False
11.
Are internal auditors having complete indepence from the organization
a)
Yes
b)
No
12.
Internal audit maybe carried out by employees of the company being audited or maybe carried out by external accountants
a)
True
b)
False
13.
In a large company, to whom do internal auditors normally report their conclusions?
a)
Executive directors
b)
Board of directors
c)
Shareholders
d)
Non executive directors
14.
The reporting of internal control weaknesses to management is the primary objective of external audit
a)
True
b)
False
15.
An internal audit function is usually legally required in
a)
All large organizations
b)
Large companies only
c)
All companies
d)
None of the above
16.
External auditor reports are addressed to
a)
Shareholders
b)
Executive directors
c)
Board of directors
d)
Audit committee
17.
Primary purpose of an internal audit is to
a)
Ensure that the financial statements are true and fair
b)
Prepare management accounts
c)
Review risk management processess and internal controls
d)
Suggest operational strategies to the board of directors
18.
All of an organization's internal controls would be of interest to the external auditor
a)
True
b)
False
19.
Which category of controls would segregation of duties be classiffied in
a)
Preventive
b)
Detective
c)
Corrective
d)
None of the above
20.
Contrasting the actual sales with the budgeted sales for a period is an example of which control activity?
a)
Arithmetical control
b)
Accounting reconciliations
c)
Comparison
d)
Computer controls
21.
Internal auditors have an unavoidable ...... problem, as they report to the people whose activities they're reporting on
a)
Integrity
b)
Independence
c)
Loyalty
d)
All of the above
22.
Which would be most likely be classified as a preventive control?
a)
Year end inventory checks
b)
Having a supervisor present on the shop floor at all times
c)
Conducting regular receivables statement reconciliations
d)
Setting procedures for irrecoverable bad debt collection
23.
Controls that are automated and designed to ensure that the data input into a system is complete and accurate are called
a)
General controls
b)
Application controls
24.
Which of the following is a skimming fraud?
a)
Large amount is skimmed off top of sales invoice as a kickback to purchaser
b)
Small amounts are diverted from a large number of transactions
c)
Invitation to pay money now in order to secure a large return in the future
d)
Submission of invoices which contain inflated amounts
25.
Intentional act to obatin an illegal advantage is known as
a)
Fraud
b)
Error
c)
Irregularity
d)
Misstatement
26.
Falsification of a statement intentionally or unintentionally is called a/an
a)
Fraud
b)
Error
c)
Irregularity
d)
Misstatement
27.
What is not a pre requisite for fraud to occur?
a)
Dishonesty
b)
Substance
c)
Motivation
d)
Opportunity
28.
Exchanging dirty money for clean money is known as
a)
Source deception
b)
Detection deception
c)
Money laundering
d)
Income legalization
29.
In money laundering, transfering of money in order to conceal their original source belongs to the phase of
a)
Placement
b)
Layering
c)
Integration
d)
Sourcing
30.
Which is not a phase in money laundering?
a)
Placement
b)
Layering
c)
Integration
d)
Sourcing
31.
'Teeming and lading' is used to describe
a)
money flows are substantial that diversion of large sums can go unnoticed
b)
fraud where purchasse ledger payments are misdirected to overseas accounts
c)
personal expenses fraud involving fictitious expense vouchers
d)
fraud where receipts from customers are misappropriated
32.
Window dressing involves
a)
producing overly detailed annual accounts in years when results are poor
b)
enter transactions at year end to improve accounts,but to reverse out after
c)
set bogus employees and their salaries paid to a specially created account
d)
misappropriation of business assets by managers
33.
Off balance sheet accounting refers to
a)
focus on income & expenses rather than to detriment of net asset management
b)
removal of business assets by employees for their own personal use
c)
diversion of assets from the balance sheet to a personal bank account
d)
deliberate exlusion of assets and liabilities from published balance sheet
34.
Lack of control over ..................... can lead to the fraudulent activity of teeming and lading
a)
non current asset register
b)
budgetary system
c)
inventory management
d)
sales ledger and receipts
35.
Leo offered his investors a 15% return on investment. To fund this, he used money raised from newer investors. This is
a)
manipulation of revenue recognition
b)
advance fee fraud
c)
false billing fraud
d)
ponzi scheme
36.
The type of power imposed using the ability to punish one's subordinates is
a)
Legitimate power
b)
Expert power
c)
Coercive power
d)
Reward power
37.
The type of power imposed due to possessing knowledge others do not have
a)
Legitimate power
b)
Expert power
c)
Coercive power
d)
Reward power
38.
If a manager justifies an instruction to a subordinate because "I am a qualified accountant", the manager is using his
a)
Legitimate power
b)
Expert power
c)
Coercive power
d)
Reward power
39.
If a manager uses disruptive behavior to prevent things from happening, it is a form of
a)
Legitimate power
b)
Resource power
c)
Negative power
d)
Chaos power
40.
Which statement describes the classical approach to management
a)
Different employees will be motivated by different things
b)
Communication should be encouraged
c)
One best approach exists
d)
An employee is considered an input to the organizational system
41.
Adair's action centered leadership model can be considered to be part of which school of thoughts?
a)
Human relations schools
b)
Classical school
c)
Contingency school
d)
Scientific school
42.
A manager doesnt get well with his subordinates & has little power to punish/reward.Which style Fiedler suggests to him?
a)
Psychologically close
b)
Psychologically open
c)
Psychologically committed
d)
Psychologically distant
43.
The main role of a supervisor is
a)
a negotiator of industrial relations within a department
b)
someone to resolve problems first hand where the work is done
c)
to ensure that specified tasks are performed correctly and efficiently
d)
the interface between junior and senior managers
44.
Which of the following conforms with Taylor's theory of scientific management?
a)
Create employee suggestion schemes to generate ideas to improve operations
b)
Focus on improving group relations and team spirit within the workforce
c)
Doesnt need detailed standard for hiring workers as they train new employee
d)
Managers make all key decisions & provide detailed instructions to workers
45.
Sam plans for an IT system. He intends to ask the staff for opinions but Sam has the final say. This is the style of
a)
Joins
b)
Tells
c)
Consults
d)
Sells
46.
Which theory believes that leaders are born leaders, and cannot be made?
a)
Trait theory
b)
Contingency theory
c)
Style theory
d)
None of the above
47.
In Blake and Mouton's managerial grid, managers having high concern for people and low concern for production are of
a)
Management impoverished
b)
Middle of the road management
c)
Country club management
d)
Task management
48.
Leaders need to consider task needs,group needs & individual needs if they wish to be effective, which relates to writer
a)
Heifetz
b)
Fiedler
c)
Bennis
d)
Adair
100 %
