Question 1

________is a concept relating to the accumulation of the audit evidence necessary for the auditor to conclude that there are no material misstatements in the financial statements taken as a whole. While the ________ is responsible for forming and expressing an opinion on the financial statements, the responsibility for preparing and presenting the financial statements is that of the management of the entity.

Options :

A : Reasonable assurance, auditor

B : Audit policy, controller

C : Reasonable assurance, trainer

D : Audit record, auditor

Answer: A

Question 2

All of the following are levels of ethics, each of which has its own sets of responsibilities EXCEPT:

Options :

A : Organizational ethics — the environment or culture of an organization and formal and informal rules of conduct. These can also include specific laws and regulations.

B : Personal morality — the basic sense of right and wrong is a function of social mores, parental influence, religious background, and personal experiences.

C : Corporate social responsibility or CSR: an umbrella term under which the ethical rights and duties existing between companies and society is debated.

D : Professional ethics — professional norms and rules that govern a profession. Some professions, such as auditing, have professional codes of conducts (such as the IIA’s Code of Ethics).

Answer: C

Question 3

A survey is a process for gathering information, without detailed verification, on the activity being examined. A survey may involve use of all of the following procedures EXCEPT:

Options :

A : Interviews with individuals affected by the activity, e.g., users of the activity are output.

B : Review of management reports and studies

C : Document key control activities and Discussions with the customer.

D : Study organizational structures.

Answer: D

Question 4

All of the following factors influence the state of an organization’s control environment EXCEPT:

Options :

A : An inconsistent or unfair employee performance evaluation, compensation, and promotion system.

B : Whether the code of conduct and ethics policy are communicated to employees and enforced by management in a sound and consistent manner.

C : Employees are held accountable for their performance.

D : Whether management emphasizes and values competence, integrity, and ethical behavior.

Answer: C

Question 5

Security administration is responsible for security over the computer facility, including all aspects of physical and data security. Following is a list of Control techniques for security administration please chooses the correct option:

Options :

A : Ensuring that the computer security administration function is independent of computer operations

B : Ensure that there are adequate backup power sources, alarms, and prevention equipment

C : A & D

D : Ensuring that users and employees are counseled on security considerations.

Answer: C