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NEW QUESTION 36
Which of the following statements are true of residual risk?
NEW QUESTION 37
SDF is a quoted company that has a large internal audit department.
Which of the following would impair the independence of SDF's internal audit?
NEW QUESTION 38
The internal audit department should always give a report at the end of its audit. This report is intended to be useful and help the company going forward. The report should always include any recommendations for improvements. Which of the following statements are true and which are false?
Answer:
Explanation:
NEW QUESTION 39
Company H operates a fleet of lorries. The Internal Auditor recently conducted an investigation into the transport needs of the company. Their report recommended that the lorries be disposed of, the drivers made redundant, and the distribution of the company's products be outsourced.
The type of investigation carried out by the Internal Auditor is best described as a:
NEW QUESTION 40
DRF is a manufacturing company
The internal auditor is conducting an investigation into the operation of the payroll system and has discovered a compliance error The Head of Human Resources (HR) is required to add any new names to the payroll, using a specific computer password The Head of HR was absent for a month because of ill health During that period a senior member of the Wages Office, who is normally responsible only for organising wage payments, was issued a temporary password in order to add new names to the payroll The password was cancelled when the Head of HR returned to work Which TWO of the following statements are correct?
NEW QUESTION 41
......
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NEW QUESTION 36
Which of the following statements are true of residual risk?
- A. Residual risk is the risk that remains after risk mitigation has taken place.
- B. Residual risk should never be accepted.
- C. Residual risk may be accepted if management feels the company can bear the risk.
- D. Residual risk has to be accepted.
- E. If residual risk is too great then the company should not expose itself to the risk situation.
NEW QUESTION 37
SDF is a quoted company that has a large internal audit department.
Which of the following would impair the independence of SDF's internal audit?
- A. Internal audit staff receive a bonus whenever they discover a compliance error.
- B. Junior internal audit staff are recruited directly from university. They spend two years with the company before moving into other departments within SDF.
- C. The head of internal audit reports directly to SDF's chief accountant.
- D. It is left to the individual members of the internal audit department to report any conflicts of interest associated with a proposed investigation to which they have been assigned.
- E. Internal audit staff salaries are linked to a company-wide salary scheme.
NEW QUESTION 38
The internal audit department should always give a report at the end of its audit. This report is intended to be useful and help the company going forward. The report should always include any recommendations for improvements. Which of the following statements are true and which are false?
Answer:
Explanation:
NEW QUESTION 39
Company H operates a fleet of lorries. The Internal Auditor recently conducted an investigation into the transport needs of the company. Their report recommended that the lorries be disposed of, the drivers made redundant, and the distribution of the company's products be outsourced.
The type of investigation carried out by the Internal Auditor is best described as a:
- A. Compliance Audit
- B. Effectiveness Audit
- C. Efficiency Audit
- D. Economy Audit
NEW QUESTION 40
DRF is a manufacturing company
The internal auditor is conducting an investigation into the operation of the payroll system and has discovered a compliance error The Head of Human Resources (HR) is required to add any new names to the payroll, using a specific computer password The Head of HR was absent for a month because of ill health During that period a senior member of the Wages Office, who is normally responsible only for organising wage payments, was issued a temporary password in order to add new names to the payroll The password was cancelled when the Head of HR returned to work Which TWO of the following statements are correct?
- A. The compliance error should be overlooked because it was as a result of staff absence
- B. The payroll should be checked thoroughly to ensure that only authorised staff are present
- C. The senior member of the Wages Office should be disciplined for being in breach of the rules
- D. The internal auditor should ignore the error because it only lasted for one month
- E. The senior member of the Wages Office could have committed fraud
NEW QUESTION 41
......