,1.Select the best alternative to complete the following sentence:
The key aspects of the King III Report revolve around …
1. alternative dispute resolution (ADR) and risk-based internal audit.
2. sustainability.
3. shareholders and remuneration.
4. leadership, sustainability and corporate citizenship.
2. After incorporation of the company, the board must appoint the audit committee members within
how many days?
1. 30 business days
2. 40 business days
3. 50 business days
4. 60 business days
3. The chairman of the board of directors must be …
1. an independent non-executive director;
2. a previously disadvantaged person;
3. the chief executive officer (CEO) of the company, or an independent non-executive director
who then reports to the CEO;
4. the CEO of the company;
4. Which one of the following alternatives will not lead to the financial director being heldliable in
terms of the Companies Act No 71 of 2008, section 76?
1. Failing to disclose to the board a personal financial interest.
2. Failing to act in good faith and for a proper purpose.
3. Failing to act in the best
Failing to inform the board of all environmental law changes. interest of the company. 4.
5. Which of the following companies are required by the Companies Act to have an auditcommittee?
i) State-owned companies.
ii) Public companies.iii) Private companies. iv) A public company that is a subsidiary of a
holding company which has an audit committee, but which will not perform the functions of an
audit committee within the subsidiary.
1. Options (i) and (ii).
2. Options (ii) and (iii). 3.
4. Options (i), (ii) and All the options.
(iv).
6. Select the incorrect statement regarding the number of times per
annum the variouscommittees should meet.
1. The board of directors must meet at least every four months.
2. The risk committee must meet at least every six months.
3. The audit committee must meet at least twice a year.
4. The remuneration committee’s number of meetings per annum is not specified in the King III
Report.
,7. Which ONE of the following alternatives is a function of the remuneration committee?
1. To assist with the process of identifying suitable members of the board.
2. To assist the board in setting and administering remuneration policies.
3. To consider the risk management policy, and to plan and monitor the risk management process.
4. To set and administer remuneration policies and ensure that these policies are being
implemented by the board.
8. Which one of the following alternatives is not an input application control to ensureaccuracy in a
computerised environment?
1. Alphanumeric format checks.
2. Access control.
3. Sequence checks.
4. Reasonableness and limit tests.
9. Which ONE of the following alternatives is not one of the ethical values on whichdecisions and
actions of directors should be based?
1. Conscience.
2. Responsibility. 3. Transparency.
Accountability.
10. What is the minimum number of members that an audit committee must have?
1. Six members.
2. Two members.
3. Three members.
4. Five members.
11. Which ONE of the following statements regarding internal control is incorrect?
1. Monitoring of the internal control process is all about determining whether the
control activities are actually taking place.
2. Control activities are actions which are carried out to achieve the entity’s objectives.
3. The control environment is about the control consciousness of the entity.
4. internal control procedures are designed to address and limit potential risks.
12. Which ONE of the following control activities in a payroll and personnel business cycle isan
example of segregation of duties?
1. Before the batch of clock cards is transferred for payroll preparation, the section head should
check calculations and authorise overtime payment.
2. The appointment or dismissal of employees should be signed by the section head and
countersigned by the section manager after referring to the budget.
Wage packets should be made up by two wage department members, whilst the
payout of wages should be conducted by an independent paymaster and the
, section foreman. 3. Any
unclaimed
wage packages should be retained by the paymaster, who should lock them away. 4.
13. Select the correct alternative to complete the following statement:
The “occurrence” management assertion means that …
1. all assets, liabilities, transactions or events which should have been recorded have been
recorded;
2. amounts and other data relating to recorded transactions and events have been recorded
appropriately;
3. a transaction or event which has been recorded took place and pertains to the entity;
4. transactions and events have been recorded in the proper accounts;
14. Which ONE of the following internal controls is not an example of a physical accesscontrol in a
computerised environment?
1. Users should provide unique user IDs and unique passwords to gain access to the system.
2. Entry and exit points to the data centre should be limited to one and may be under closed-
circuit TV surveillance.
3. The building in which the equipment that runs the computerised system is housed (for example
the servers and CPU) should have a dedicated room to which only a dedicated number of
personnel should have access.
4. Company personnel, other than IT personnel, should not need to enter the data centre and
access should be controlled.
15. Which ONE of the following control activities is an example of isolation of responsibility?
1. An independent employee should regularly reconcile the debtors ledger with the debtors
control account in the general ledger.
2. Access to the inventory warehouse should be controlled by means of a turnstile gate and a
security guard checking goods leaving the warehouse.
3. The order clerk in the sales department of a company should issue the internal sales order
(ISO), the warehouse clerk should perform the picking of the goods on the order in the
warehouse and the dispatch clerk should dispatch the goods for delivery to the customer. 4.
The company’s production foreman should sign the schedule of overtime before he 16. Select
or she hands it to the wages clerk for it to be calculated and paid. from the
following
alternatives the incorrect alternative with regard to thecharacteristics of internal control.
1. Internal controls are not affected by changes in conditions, and therefore
compliance with procedures will not deteriorate.
2. Internal
control is a process, namely a combination of systems, policies and procedures, designed,
implemented and maintained to address the risks of running a business.
The key aspects of the King III Report revolve around …
1. alternative dispute resolution (ADR) and risk-based internal audit.
2. sustainability.
3. shareholders and remuneration.
4. leadership, sustainability and corporate citizenship.
2. After incorporation of the company, the board must appoint the audit committee members within
how many days?
1. 30 business days
2. 40 business days
3. 50 business days
4. 60 business days
3. The chairman of the board of directors must be …
1. an independent non-executive director;
2. a previously disadvantaged person;
3. the chief executive officer (CEO) of the company, or an independent non-executive director
who then reports to the CEO;
4. the CEO of the company;
4. Which one of the following alternatives will not lead to the financial director being heldliable in
terms of the Companies Act No 71 of 2008, section 76?
1. Failing to disclose to the board a personal financial interest.
2. Failing to act in good faith and for a proper purpose.
3. Failing to act in the best
Failing to inform the board of all environmental law changes. interest of the company. 4.
5. Which of the following companies are required by the Companies Act to have an auditcommittee?
i) State-owned companies.
ii) Public companies.iii) Private companies. iv) A public company that is a subsidiary of a
holding company which has an audit committee, but which will not perform the functions of an
audit committee within the subsidiary.
1. Options (i) and (ii).
2. Options (ii) and (iii). 3.
4. Options (i), (ii) and All the options.
(iv).
6. Select the incorrect statement regarding the number of times per
annum the variouscommittees should meet.
1. The board of directors must meet at least every four months.
2. The risk committee must meet at least every six months.
3. The audit committee must meet at least twice a year.
4. The remuneration committee’s number of meetings per annum is not specified in the King III
Report.
,7. Which ONE of the following alternatives is a function of the remuneration committee?
1. To assist with the process of identifying suitable members of the board.
2. To assist the board in setting and administering remuneration policies.
3. To consider the risk management policy, and to plan and monitor the risk management process.
4. To set and administer remuneration policies and ensure that these policies are being
implemented by the board.
8. Which one of the following alternatives is not an input application control to ensureaccuracy in a
computerised environment?
1. Alphanumeric format checks.
2. Access control.
3. Sequence checks.
4. Reasonableness and limit tests.
9. Which ONE of the following alternatives is not one of the ethical values on whichdecisions and
actions of directors should be based?
1. Conscience.
2. Responsibility. 3. Transparency.
Accountability.
10. What is the minimum number of members that an audit committee must have?
1. Six members.
2. Two members.
3. Three members.
4. Five members.
11. Which ONE of the following statements regarding internal control is incorrect?
1. Monitoring of the internal control process is all about determining whether the
control activities are actually taking place.
2. Control activities are actions which are carried out to achieve the entity’s objectives.
3. The control environment is about the control consciousness of the entity.
4. internal control procedures are designed to address and limit potential risks.
12. Which ONE of the following control activities in a payroll and personnel business cycle isan
example of segregation of duties?
1. Before the batch of clock cards is transferred for payroll preparation, the section head should
check calculations and authorise overtime payment.
2. The appointment or dismissal of employees should be signed by the section head and
countersigned by the section manager after referring to the budget.
Wage packets should be made up by two wage department members, whilst the
payout of wages should be conducted by an independent paymaster and the
, section foreman. 3. Any
unclaimed
wage packages should be retained by the paymaster, who should lock them away. 4.
13. Select the correct alternative to complete the following statement:
The “occurrence” management assertion means that …
1. all assets, liabilities, transactions or events which should have been recorded have been
recorded;
2. amounts and other data relating to recorded transactions and events have been recorded
appropriately;
3. a transaction or event which has been recorded took place and pertains to the entity;
4. transactions and events have been recorded in the proper accounts;
14. Which ONE of the following internal controls is not an example of a physical accesscontrol in a
computerised environment?
1. Users should provide unique user IDs and unique passwords to gain access to the system.
2. Entry and exit points to the data centre should be limited to one and may be under closed-
circuit TV surveillance.
3. The building in which the equipment that runs the computerised system is housed (for example
the servers and CPU) should have a dedicated room to which only a dedicated number of
personnel should have access.
4. Company personnel, other than IT personnel, should not need to enter the data centre and
access should be controlled.
15. Which ONE of the following control activities is an example of isolation of responsibility?
1. An independent employee should regularly reconcile the debtors ledger with the debtors
control account in the general ledger.
2. Access to the inventory warehouse should be controlled by means of a turnstile gate and a
security guard checking goods leaving the warehouse.
3. The order clerk in the sales department of a company should issue the internal sales order
(ISO), the warehouse clerk should perform the picking of the goods on the order in the
warehouse and the dispatch clerk should dispatch the goods for delivery to the customer. 4.
The company’s production foreman should sign the schedule of overtime before he 16. Select
or she hands it to the wages clerk for it to be calculated and paid. from the
following
alternatives the incorrect alternative with regard to thecharacteristics of internal control.
1. Internal controls are not affected by changes in conditions, and therefore
compliance with procedures will not deteriorate.
2. Internal
control is a process, namely a combination of systems, policies and procedures, designed,
implemented and maintained to address the risks of running a business.
