ATTEMPT QUESTION ONE (1) AND ANY OTHER TWO (2) QUESTIONS 1. Internal auditors must exercise due professional care by considering the; a. Extent of work needed to achieve the engagement's objectives. b. Adequacy and effectiveness of governance, risk management, and control processes. c. Cost of assurance in relation to potential benefits. d. Probability of insignificant errors, fraud, or noncompliance. 2. The following are common types of fraud in an organization, except; a. Corruption. b. Asset misrepresentation c. Financial statement fraud. d. Asset misappropriation. 3. From your studies on fraud, which one of the following in not part of the fraud triangle? a. Corruption. b. Rationalization c. Opportunity. d. Pressure. 4. Which one of the following statements is true about breaking the fraud triangle? a. Merging the fraud triangle is the key to fraud deterrence. b. Removing one of the elements in the fraud triangle will not minimize the likelihood of fraudulent activities. c. Removal of opportunity provides the most actionable route to deterrence of fraud d. Removal of corruption provides the most actionable route to deterrence of fraud 5. An organization's exposure to fraud is a function of the following, except; a. The fraud risks inherent in the business. b. The extent to which effective internal controls to prevent or detect fraud are present; and. c. The expertise and efficiency of those involved in the process d. The honesty and integrity of those involved in the process 6. Internal Controls are policies, practices and procedures designed to achieve the following, except; a. Ensure accuracy and reliability of transactions b. Promote efficiency c. Measure compliance with policies d. Safeguard liabilities 7. Which one of the following is not a limitation of an internal control system? a. Errors are made due to employee fatigue b. Fraud occurs because of collusion between two employees c. The industry is inherently risky d. Management instructs the bookkeeper to make fraudulent journal entries 8. The most cost-effective type of internal control is a. preventive control b. accounting control 2