- 1 Internal audit is an important tool of management to evaluate the correctness of records on a continuous basis in an organisation. You are required to choose the correct statement from the following? d out of O a. Internal auditors are always independent third parties b. Internal auditors of a company are always outside employees c. Internal auditors are generally full-time own employees, however some companies outsource it to outside parties O d. Internal auditors of a company are always full-time own employees 2 Which of the following would assist an entity in identifying and preventing fraud? out of O a. Accounting reconciliations O b. Segregation of duties O c. Authorization O d. All the options on 3 Which of the following statements is correct, with regards to a limited assurance engagement? ed out of n O a. The practitioner gives a negatively worded assurance opinion O b. The practitioner gathers sufficient appropriate evidence to be able to draw reasonable conclusions O c. The detailed audit procedures are performed by the auditors O d. The practitioner will state whether the subject matter conforms with the identified suitable criteria, in all material respects 4 Alibaba SAOG a listed company based in Muscat, is currently reviewing its corporate governance practices to ensure they are compliant with regulations. The following is a description of the corporate governance policies they have in place: d out of i) A remuneration committee comprising 3 non-executive directors. ii) An audit committee comprising the finance director, the chief executive and, 2 non- executive directors. ii) Separate people taking on the roles of chairman and chief executive officer. Alibaba Company does not currently have an internal audit function. Which of the following summarises the requirements of corporate governance regulations in respect of internal audit? a. The audit committee must review the need for an internal audit function on an annual basis O b. The remuneration committee must establish an internal audit committee as soon as possible O c. The finance director must review the need for an internal audit function and should make a request to the audit committee to appoint him as the head of internal audit O d. There must either be an audit committee or internal audit function in place but there is no requirement to have both n5 Which of the following statements is not correct, In a Reasonable assurance engagement? ed out of n O a. The procedures performed are normally restricted to enquiry and analytical procedures O b. The practitioner will state whether the subject matter conforms with the identified suitable criteria, in all material respects c. The practitioner gathers sufficient appropriate evidence to be able to draw reasonable conclusions O d. The practitioner gives a positively worded assurance opinion