Chapterg1
1.gThegfunctionalgareasgofgagbusinessgincludes:
a.gSales
b.gMarketing
c.gProduction
d.gAllgofgthegabove
ANSWER:gD
2.gThegauditgofgoperatinggunitsgincludesgallgexcept:
a.gDepots
b.gSubsidiaries
c.gDistribution
d.gManufacturinggplants
ANSWER:gC
3.
I.gThegabilitygofgangenterprisegtogaffordgsogbroadgangaudit
II.gThegdifficultygofgobtaininggpeoplegwhogcangdogagbroadgtypegofgaudit
Whichgisgconsideredgaglimitinggfactor?
A.gStatementgIgonly
B.gStatementgIIgonly
C.gBothgIgandgII
D.gNonegofgthegabove
ANSWER:gC
4.gItgisgagcomparisongofgone’sgowngperformancegingagspecificgareagwithgthatgappliedgbygothersgingcomp
atiblegcircumstances.
A.gValue
B.gMeasurement
,C.gBenchmarking
D.gAuditing
ANSWER:gC
5.gWhichgisgnotgconsideredgasgtheg"threegEs"gthatgInternalgauditorsgaregauditinggfor:
A.gEquity
B.gEthics
C.gEnvironment
D.gEtiquette
ANSWER:gD
6.gItgisgeverythinggthatgmanagementgdoesgingordergthatgtheregisgreasonablegassurancegthegbusinessgwill
gachievegallgofgitsgobjectives.
a.gInternalgAuditing
b.gManagementgControl
c.gInternalgControl
d.gOperationalgAuditing
ANSWER:gC.gINTERNALgCONTROL
7.gWhichgofgthegfollowinggisgNOTgagcategorygofgachievementgofgobjectivesgunderginternalgcontrol?
a.gReliabilitygofgfinancialgreporting.
b.gRecordinggtransactionsgproperly.
c.gEffectivenessgandgefficiencygofgoperations.
d.gCompliancegwithgapplicableglawsgandgregulations.
ANSWER:gB.gRECORDINGgTRANSACTIONSgPROPERLY.
8.gItghelpsgangorganizationgaccomplishgitsgobjectivesgbygbringinggagsystematic,gdisciplinedgapproachgtog
evaluategandgimprovegthegeffectivenessgofgriskgmanagement,gcontrol,gandggovernancegprocesses.
a.gInternalgAuditing
,b.gManagementgControl
c.gInternalgControl
d.gOperationalgAuditing
ANSWER:gA.gINTERNALgAUDITING
9.gItgencourageginternalgauditgtoginterpretgitsgmissiongasgbeinggthegappraisalgofginternalgcontrol.
a.gThegindependentgappraisalgofgthegeffectivenessgofginternalgcontrol.
b.gCommitteegofgSponsoringgOrganizations
c.gMiddle-of-the-roadgapproach
d.gControlgDimension
ANSWER:gC.gMIDDLE-OF-THE-ROADgAPPROACH
10.gAtgthegtopglevel,gonegpossiblegcategorizationgofgoperationalgauditinggcouldgbegasgfollowsgEXCEPT:
a.gAftergsalesgsupport
b.gPersonnelgandghumangrelations
c.gStockgandgmaterialsghandling
d.gAnalysts
ANSWER:gD.gANALYSTS
11.gThesegperformancegmeasuresgdrawgattentiongtogunfairnessgorgpotentialgsocialgirresponsibilitygingter
msgofgcorporategpolicygandgpractice.
a.gEquitygPerformancegMeasures
b.gWorkloadgPerformancegMeasures
c.gEconomygPerformancegMeasures
d.gEffectivenessgPerformancegMeasures
ANSWER:gA.gEQUITYgPERFORMANCEgMEASURES
12.gFunctionalgAreasgofgbusinessgmaygincludegsales,gmarketing,gproduction,gdistribution,gandgHR.
A.gTrue
, B.gFalse
Answer:gA.gTrue
13.gItgisgangeffectivegtoolgofgmanagerialgcontrol.
A.gFinancialgAudit
B.gInternalgAudit/gOperationalgAudit
C.gExternalgAudit
D.gAllgofgthegabove
Answer:gB.gInternalgAudit/gOperationalgAudit
14.gItgcangbegdefinedgsimplygasgagcomparisongofgone’sgowngperformancegingagspecificgareagwithgthatgap
pliedgbygothergingcompatiblegcircumstances.
A.gEquitygPerformance
B.gValuegforgMoneyg(VFM)gAuditing
C.gBenchmarking
D.gNonegofgthegabove
Answer:gC.gBenchmarking
15.gOperationalgAuditorsgaregauditinggforgtheg“threegEs.gWhatgaregthesegthreegES?
A.gExpression,gExpectations,gandgExperiences
B.gExpenses,gEquity,gandgExamination
C.gEffectiveness,gEfficiency,gandgEconomy
D.gExperiences,gEfficiencygandgEconomy
Answer:gC.gEffectiveness,gEfficiency,gandgEconomy
16.gInternalgAuditorsgmustgpossessgcertaingcharacteristicsgthatgcouldghelpgthemgperformgtheirgindividua
lgresponsibilities.
A.gTrue
B.gFalse
1.gThegfunctionalgareasgofgagbusinessgincludes:
a.gSales
b.gMarketing
c.gProduction
d.gAllgofgthegabove
ANSWER:gD
2.gThegauditgofgoperatinggunitsgincludesgallgexcept:
a.gDepots
b.gSubsidiaries
c.gDistribution
d.gManufacturinggplants
ANSWER:gC
3.
I.gThegabilitygofgangenterprisegtogaffordgsogbroadgangaudit
II.gThegdifficultygofgobtaininggpeoplegwhogcangdogagbroadgtypegofgaudit
Whichgisgconsideredgaglimitinggfactor?
A.gStatementgIgonly
B.gStatementgIIgonly
C.gBothgIgandgII
D.gNonegofgthegabove
ANSWER:gC
4.gItgisgagcomparisongofgone’sgowngperformancegingagspecificgareagwithgthatgappliedgbygothersgingcomp
atiblegcircumstances.
A.gValue
B.gMeasurement
,C.gBenchmarking
D.gAuditing
ANSWER:gC
5.gWhichgisgnotgconsideredgasgtheg"threegEs"gthatgInternalgauditorsgaregauditinggfor:
A.gEquity
B.gEthics
C.gEnvironment
D.gEtiquette
ANSWER:gD
6.gItgisgeverythinggthatgmanagementgdoesgingordergthatgtheregisgreasonablegassurancegthegbusinessgwill
gachievegallgofgitsgobjectives.
a.gInternalgAuditing
b.gManagementgControl
c.gInternalgControl
d.gOperationalgAuditing
ANSWER:gC.gINTERNALgCONTROL
7.gWhichgofgthegfollowinggisgNOTgagcategorygofgachievementgofgobjectivesgunderginternalgcontrol?
a.gReliabilitygofgfinancialgreporting.
b.gRecordinggtransactionsgproperly.
c.gEffectivenessgandgefficiencygofgoperations.
d.gCompliancegwithgapplicableglawsgandgregulations.
ANSWER:gB.gRECORDINGgTRANSACTIONSgPROPERLY.
8.gItghelpsgangorganizationgaccomplishgitsgobjectivesgbygbringinggagsystematic,gdisciplinedgapproachgtog
evaluategandgimprovegthegeffectivenessgofgriskgmanagement,gcontrol,gandggovernancegprocesses.
a.gInternalgAuditing
,b.gManagementgControl
c.gInternalgControl
d.gOperationalgAuditing
ANSWER:gA.gINTERNALgAUDITING
9.gItgencourageginternalgauditgtoginterpretgitsgmissiongasgbeinggthegappraisalgofginternalgcontrol.
a.gThegindependentgappraisalgofgthegeffectivenessgofginternalgcontrol.
b.gCommitteegofgSponsoringgOrganizations
c.gMiddle-of-the-roadgapproach
d.gControlgDimension
ANSWER:gC.gMIDDLE-OF-THE-ROADgAPPROACH
10.gAtgthegtopglevel,gonegpossiblegcategorizationgofgoperationalgauditinggcouldgbegasgfollowsgEXCEPT:
a.gAftergsalesgsupport
b.gPersonnelgandghumangrelations
c.gStockgandgmaterialsghandling
d.gAnalysts
ANSWER:gD.gANALYSTS
11.gThesegperformancegmeasuresgdrawgattentiongtogunfairnessgorgpotentialgsocialgirresponsibilitygingter
msgofgcorporategpolicygandgpractice.
a.gEquitygPerformancegMeasures
b.gWorkloadgPerformancegMeasures
c.gEconomygPerformancegMeasures
d.gEffectivenessgPerformancegMeasures
ANSWER:gA.gEQUITYgPERFORMANCEgMEASURES
12.gFunctionalgAreasgofgbusinessgmaygincludegsales,gmarketing,gproduction,gdistribution,gandgHR.
A.gTrue
, B.gFalse
Answer:gA.gTrue
13.gItgisgangeffectivegtoolgofgmanagerialgcontrol.
A.gFinancialgAudit
B.gInternalgAudit/gOperationalgAudit
C.gExternalgAudit
D.gAllgofgthegabove
Answer:gB.gInternalgAudit/gOperationalgAudit
14.gItgcangbegdefinedgsimplygasgagcomparisongofgone’sgowngperformancegingagspecificgareagwithgthatgap
pliedgbygothergingcompatiblegcircumstances.
A.gEquitygPerformance
B.gValuegforgMoneyg(VFM)gAuditing
C.gBenchmarking
D.gNonegofgthegabove
Answer:gC.gBenchmarking
15.gOperationalgAuditorsgaregauditinggforgtheg“threegEs.gWhatgaregthesegthreegES?
A.gExpression,gExpectations,gandgExperiences
B.gExpenses,gEquity,gandgExamination
C.gEffectiveness,gEfficiency,gandgEconomy
D.gExperiences,gEfficiencygandgEconomy
Answer:gC.gEffectiveness,gEfficiency,gandgEconomy
16.gInternalgAuditorsgmustgpossessgcertaingcharacteristicsgthatgcouldghelpgthemgperformgtheirgindividua
lgresponsibilities.
A.gTrue
B.gFalse
