1. In the Three Lines of Defense Model, the board of directors is accountable for the selection, development, and evaluation of the system of internal control.

True or False

2. Which statements is False? Select the best answer.

a. The board chairman must know how to create focus amongst the board members.

b. The board chairman must have good communication skills

c. The board chairman needs to have good people skills.

d. The board chairman should be direct and concise, even if it offends another director.

e. All the statements are True

3. Which statements is False?

a. Neither senior management, external auditors, nor the board of directors is considered to be part of either of the three lines of defense.

b. Internal auditors do not design or implement controls as part of their normal responsibilities.

c. Regulators often play an important role regarding the organizations overall governance and control structure.

d. All of the statements are True.

4. The AICPA regulates auditors of publicly-held entities and maintains auditing standards applicable to their audits.

True or False

5. The board chairman should participate in major company, by being easily accessible to employees in person, via e-mail, or by phone.

True or False

6. When bad things happen, employees should know they can go to the chairman of the board.

True or False

7. Adherence to IASBs standards is voluntary. However, FASB mandates following GAAP.

True or False