Question 1

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines____________ as

"a process, effected by an entity's board of directors, management, andother personnel, designed to provide

reasonable assurance regarding the achievement of objectives relating to operations, reporting, and

compliance."

Options :

A : Corporate compliance

B : Fraud risk management

C : Risk assessment

D : Internal control

Answer: D

Question 2

Before buying a capital asset, an organisation should weigh the costs and benefits of the asset. What factors are included in this analysis? Select TWO that apply.

Options :

A : The cumulative cash flows generated by the asset

B : Current liabilities in the balance sheet

C : The cost of the asset

D : Dividends paid

E : Shareholders' equity

Answer: A,C

Question 3

Which of the following is NOT a purpose served by a professional organization's code of conduct?

Options :

A : It replaces the need for individuals to consult their own conscience.

B : It facilitates practical enforcement and profession-wide Internal discipline.

C : It serves as a reference and benchmark for ethical guidance

D :

It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

Answer: A

Question 4

To plan for strategic safety stock, a manufacturer needs to estimate the likelihood and the consequences of running out of stock. What are some common costs that a manufacturer might face in a stock out situation? Select TWO that apply.

Options :

A : Extra costs for urgent transportation

B : Costs of handling inventory

C : Costs of approving the requisition

D : Cost of equipment downtime

E : Costs for qualifying suppliers

Answer: A,D

Question 5

Willow, Inc. has a complex organizational structure with many specialized departments. The structure of Willow, Inc. increases the likelihood that fraud will go undetected within the organization.

Options :

A : True

B : False

Answer: B