Question 1

Management must continually _________and develop clearly defined control objectives. The ________are the policies and procedures that help ensure that management’s objectives are followed.

Options :

A : Assess diversification risk, planning activities

B : Assess price risk, organizing activities

C : Assess business risk, Control activities

D : Assess credit risk, planning activities

Answer: C

Question 2

To evaluate the reliability of performance data in cases where a performance measurement system exists. All of the following are the steps that are included in the process EXCEPT:

Options :

A : Document (map) component’s existing performance measurement system.

B : Determine if the reports produced by the existing system are adequate

C : Assess reliability, accuracy, and validity of data to support the existing systems.

D : Test availability, reliability, and validity of existing data to support measures

Answer: D

Question 3

The audit committee should be made up of individuals who are independent of the day-to-day management of the public sector entity and who have the necessary program and /or management expertise to perform their review function effectively. The responsibilities of the audit committee should be stated in a _______, _______ or _______that is approved by the full board or governing body of the public sector entity, as appropriate.

Options :

A : Informal, written charter or equivalent document

B : Legal, written charter or equivalent document

C : Formal, verbal charter or equivalent document

D : Formal, written charter or equivalent document

Answer: D

Question 4

All of the following are guidelines for effective personnel management EXCEPT:

Options :

A : Plan for personnel needs and review hiring results periodically to determine whether personnel needs are being achieved

B : Estimate the significance of a risk (magnitude of exposure in dollars or other type of measure, type of threat, duration, etc.)

C : Provide continuing education and training for staff (external or in-house training courses, professional conferences, or seminars).

D : Develop procedures to identify sources of potential hires, methods of contacting and attracting potential hires, and methods of evaluating and selecting potential hires

Answer: B

Question 5

Information used in reporting should be reviewed for accuracy and contain all of the following characteristics EXCEPT:

Options :

A : Relevance and understandability

B : Comparability and timeliness

C : Consistency and reliability

D : Planning an organizing

Answer: D