1. Which of the following is considered by the COSO board to be a responsibility of management and not of the board of directors or equivalent body?

a. Developing the company's mission, vision and stragegy

b. Assessing the board's effectiveness

c. Not monitoring

d. Evaluating the performance of senior management

2. Which of the following is true regarding fraud in a technological environment?

a. In recent years, a large proportion of computer fraud has been detected

b. An effective defense against computer fraud is detection.

c. When employees or others use computers to commit "inappropriate acts", internal auditors may become involved in dealing with the problem.

d. Preventive measures aimed at averting computer fraud are very different from those found in manual system.

3. In which phase of assurance engagement would internal auditors obtain the oganization's ethical policies?

a. plan phase

b. Perform phase

c. Communicate phase

d. Monitor phase

4. In a production environment, which of the following is a main activity that is considered common and merit the attention of the internal auditor?

a. Identifying multiple new material suppliers to avoid shortages

b. Strategic positioning and evaluation

c. Inventory control

d. Budgeting for extra costs due to production downtime.

5. Which of the following is an impact of IT on internal controls?

a. Lack of visible output

b. Increase segregation of duties

c. Reduced risk of unauthorized access to, and alternation of, data and programs

d. Consistency of performance, reducing the change of persistence errors.