Choose the Correct Answer:

1. The involvement scope of internal auditors is within the boundaries of and influence of: a) Directors and Management. b) Management and employees. c) Shareholders and directors. d) Shareholders and Management.
2. The CAE's first task is to develop charter. identify item that should be included in the statement of objectives: a) Report all audit findings to the audit committee every quarter. b) submit department budget variance reports to management every month. c) Notify government regulatory agencies of unethical business practices by organisation management. d) determine the adequacy and effectiveness of the organisation's systems and internal controls.
3. The following is not a company that should appoint an SEC: a) A state owned Companies. b) Any other company that has more than 500 points in the past two years and has been in operation for past five years. c)Listed Company. d) Any other company with less than 500 points in the past two years, that has been in operation for the past five years.
4. From a modern internal auditing perspective which one the following statements represents the most important benefit of an internal auditing activity to management: a) Assurance that the organisation is complying with legal requirements. b) Assurance that there is reasonable control over day to day operations. c) Assurance that fraudulent activities will be detected. d) Assurance that published financial statements are correct.
5. Identify the correct governing legislations for Internal Auditors: a) The Institute of Internal Auditors and SAICA. b) The Companies Act and The Institue of Internal Auditors. c) The Companies Act and SAICA. d) The Institute of Internal Aditors and SAIPA.
6. The best description of the purpose of internal auditing is that it: a) Reviews the reliability and integrity of financial and operating information. b) Review the means of safeguarding assets and as appropriate verifies the existence of such assets. c) Furnishes members of the organisation with information needed ton effectively discharge their responsibilities. d) Appraises the economy and efficiency with which resources are employed.
7. The role of internal auditing in support of the audit committee, includes the following: a) Concerned with material misstatement of the financial statements. b) Expressing opinion on financial statements. c) Report directly to the shareholders on the opinion financial statements. d) Review or encourage the audit committee to conduct periodic reviews of activities.