MAC 2601 EXAM PACK - QUESTIONS AND
CORRECT DETAILED ANSWERS WELL VERIFIED
.GRADED A+
3 components of value proposition - ANSWER -assurance, insight,
objectivity
insight - ANSWER -Internal auditor acts as a catalyst for improving an
organization's effectiveness and efficiency by providing insight and
recommendation based on analyses and assessment of data and
business processes.
objectivity - ANSWER -With commitment to integrity and
accountability, internal auditor provides value to governing bodies and
senior management as an objective source of independent advice.
,auditing vs accounting - ANSWER -accounting collects, classifies,
summarizes and communicates data, as well as measures and
communicates business events and conditions.
auditing considers business events and conditions also but does not
have the task of measuring or communicating them. they review them
for propriety. it is analytical and investigative
Risk - ANSWER -the effect of uncertainty on business objectives; risk
mgmt refers to the set of coordinated activities to direct and control an
organization to recognize opportunities while management negative
events
control activities - ANSWER -responds to a specific risk, whereas a
monitoring activity assesses whether controls within each of the five
components of internal control are operating as intended
monitoring activities - ANSWER -ongoing evaluations built into
business processes at different levels of entity that provide timely
information. they vary in scope and frequency
common control activities present in well designed system of controls -
ANSWER -segregation of incompatible function, performance review, IT
, access control activities, documentation, physical access control
activities, IT application, physical access control activities
3 layers of monitoring activities - ANSWER -1. everyday activities
performed by mgmt of a given area
2. non independent evaluation of internal controls performed by mgmt
on a regular basis to identify and resolve any deficiency
3. independent assessment by an outside area or function
compliance - ANSWER -adherence to policies, plans, procedures, laws,
regulations, contracts of other requirements
corporate governance - ANSWER -values/goals are established and
communicated, accomplishment of goals are monitored, accountability
is ensured, and values are preserved
governance umbrella - ANSWER -board of directors up top- they have
strategic direction, governance oversight
role of the Board in Governance - ANSWER -to identify the
stakeholders of an organization, understand the needs and expectations
CORRECT DETAILED ANSWERS WELL VERIFIED
.GRADED A+
3 components of value proposition - ANSWER -assurance, insight,
objectivity
insight - ANSWER -Internal auditor acts as a catalyst for improving an
organization's effectiveness and efficiency by providing insight and
recommendation based on analyses and assessment of data and
business processes.
objectivity - ANSWER -With commitment to integrity and
accountability, internal auditor provides value to governing bodies and
senior management as an objective source of independent advice.
,auditing vs accounting - ANSWER -accounting collects, classifies,
summarizes and communicates data, as well as measures and
communicates business events and conditions.
auditing considers business events and conditions also but does not
have the task of measuring or communicating them. they review them
for propriety. it is analytical and investigative
Risk - ANSWER -the effect of uncertainty on business objectives; risk
mgmt refers to the set of coordinated activities to direct and control an
organization to recognize opportunities while management negative
events
control activities - ANSWER -responds to a specific risk, whereas a
monitoring activity assesses whether controls within each of the five
components of internal control are operating as intended
monitoring activities - ANSWER -ongoing evaluations built into
business processes at different levels of entity that provide timely
information. they vary in scope and frequency
common control activities present in well designed system of controls -
ANSWER -segregation of incompatible function, performance review, IT
, access control activities, documentation, physical access control
activities, IT application, physical access control activities
3 layers of monitoring activities - ANSWER -1. everyday activities
performed by mgmt of a given area
2. non independent evaluation of internal controls performed by mgmt
on a regular basis to identify and resolve any deficiency
3. independent assessment by an outside area or function
compliance - ANSWER -adherence to policies, plans, procedures, laws,
regulations, contracts of other requirements
corporate governance - ANSWER -values/goals are established and
communicated, accomplishment of goals are monitored, accountability
is ensured, and values are preserved
governance umbrella - ANSWER -board of directors up top- they have
strategic direction, governance oversight
role of the Board in Governance - ANSWER -to identify the
stakeholders of an organization, understand the needs and expectations
