$($i$)$ MULTIPLE$-$CHOICE QUESTIONS

Choose the correct option for each of the following. Write only the question number and your chosen answer. For instance, if you think that the correct answer for number $1$ is $($a$),$ then write it as $1.($a$).$

Who must manage risk?

a$)$ All stakeholders of the company

b$)$ Shareholders of the company

c$)$ Management

d$)$ Employees

Each of the three parties involved in an audit plays a role that contribute to its success

a$)$ The client, the auditor, and the board of directors

b$)$ The client, the auditor, and the moderator

c$)$ The client, the moderator, and the auditee

d$)$ The client, the auditor, and the auditee

An auditor selects audit procedures which will provide:

a$)$ The most evidence.

b$)$ The most persuasive evidence.

c$)$ The most reliable evidence that can be obtained in a cost$-$effective manner.

d$)$ The most relevant information to the audit assertion.

Which of the following does not describe the agency theory:

a$)$ The members of management operate as agents for the owners of the business.

b$)$ The agency theory considers the auditor as the principle.

c$)$ An independent and objective internal audit is a measure of control used by the agent to satisfy the principle that the duties have been met.

d$)$ Accountability is the duty all managers assume in order to show that they have met their responsibilities and made use of the resources entrusted to them.

Which of the following does quality controls not assure?

a$)$ Consistent level of quality

b$)$ Similar units of output

c$)$ Continuity

d$)$ Standards to maximize time lost

The purpose of internal auditing is to improve the performance of the organisation. The internal auditor can help management to improve the chances of reaching organisation objectives. This is done by:

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Internal Auditing $1$

a$)$ Informing top management, unit management and the audit committee about the efficiency of the existing internal control system,

b$)$ Explain the performance management process to the employees, and

c$)$ Assist with the implementation of the performance employee process

d$)$ Explaining to employees how the audit procedure is performed

Skills that will ensure effective reporting of audit results do not include:

a$)$ Disagreeing corrective action

b$)$ Negotiating

c$)$ Writing reports

d$)$ Presenting

Internal auditing developed to be a systematic, objective appraisal of the diverse operations and controls within an organisation to determine amongst other things whether:

a$)$ Financial and operating information is available for all stakeholders

b$)$ Risks to the enterprise do exist

c$)$ External regulations and acceptable internal policies and procedures are followed

d$)$ An average amount of standards are met

Which of the following is not included in the CEA, which is an assessment of the unit management key controls to manage significant threats identified in the CSA.

a$)$ It assesses the effectiveness of old controls that were implemented in the past

b$)$ A control is effective if it functions as intended

c$)$ The internal auditor must obtain information on the previous effectiveness of controls

d$)$ A consultant will have to design procedures to get this information

The FUA follows the UAR phase. The period between the UAR and the FUA will be determined by:

a$)$ The agreement with unit employees