AUE2602_Multiple_Choice
_Question_Bank.
,AUE2602
Multiple Choice Questions
Part 1
1. Which ONE of the following internal controls is not an example of physical access control in a
computerised environment?
A. Entry and exit points to the data centre should be limited to one and may be under closed- circuit TV
surveillance.
B. With the exception of IT personnel, company personnel do not need to enter the data centre; access
should also be controlled.
C. Users should provide unique user IDs and passwords to gain access to the system.
D. 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.
2. Cluedo Limited is a large company that manufactures and sells board games. The board of directors
meets at least once a year when required... The members of the board of directors are:
Colonel Mustard Chairperson and Independent Non-executive
Director
Dr Black Chief Executive Officer (CEO)
Miss Scarlett CA (SA) Financial Director
Mrs White Operations Director
Mr Green Independent Non-executive Director
Prof Plum Independent Non-executive Director
Which ONE of the following statements is false?
A. Dr Black may be a member of the audit committee.
B. The chairperson of the board, Colonel Mustard, may not be a member of the audit committee.
C. Colonel Mustard may be a member of the risk committee.
D. Dr Black may not be a member of the remuneration committee.
3. The governing body should oversee and monitor, on an ongoing basis, how the consequences of the
organisation’s activities and outputs affect the status as a responsible corporate citizen.
Which ONE of the following alternatives is not an area over which such oversight and monitoring should
be performed against measures and targets agreed with management?
A. environment
B. society
C. economy
D. payroll
4. Application of the King IV Report is based on …
A. apply and explain
B. apply when necessary
C. apply or else.
D. apply or explain
5. Complete the following sentence:
Internal control is …
A. an effective method of addressing the risk of management override.
, B. an effective method of addressing collusion.
C. a dynamic process.
D. the sole responsibility of management and the board of directors.
6. Which ONE of the following alternatives is a function of the remuneration committee?
A. To assist with the process of identifying suitable members of the board.
B. To set and administer remuneration policies and ensure that these policies are being implemented
by the board.
C. To assist the board in setting and administering remuneration policies.
D. To consider the risk management policy and to plan and monitor the risk management process.
7. As part of systems development, which ONE of the following alternatives is not an advantage of
packaged software purchased?
A. Packages are upgraded on an ongoing basis
B. Technical support is available
C. Changes cannot be made by a purchaser of the software
D. Lower costs
8. HealthIQ Limited is a large company that provides medical aid and insurance services. The board of
directors meets as and when required, but at least once a year. The members of the board of directors
are:
Dr Vitamin Chair and independent non-executive director and a medical
doctor
Dr Omega Chief Executive Officer (CEO), and medical doctor
Mr Iron Financial director
Mrs Magnesium The Company secretary
Prof Antibiotics Registered auditor, the wife of one of the major suppliers of
inventory to HealthIQ Limited
Select the correct alternative to complete the following sentence: HealthIQ Limited does not comply with
Principle 7.8 of the King IV Report relating to the composition of the board. The board of directors
should comprise a balance of power with a majority of …
A. non-executive directors, of whom the majority must be independent.
B. independent directors.
C. executive directors.
D. non-executive directors.
, 9. Within how many days after a public or state-owned company has been incorporated should the board
appoint the members of the audit committee?
A. 30 business days
B. 60 business days
C. 50 business days
D. 40 business days
10. HealthIQ Limited is a large company that provides medical aid and insurance services. The board of
directors meets as and when required, but at least once a year. The members of the board of directors
are:
Dr Vitamin Chair and independent non-executive director and a medical doctor
Dr Omega Chief Executive Officer (CEO), and medical doctor
Mr Iron Financial director
Mrs Magnesium The Company secretary
Prof Antibiotics Registered auditor, the wife of one of the major suppliers of inventory to HealthIQ
Limited
Which ONE of the following statements is false?
A. Mr Iron may be a member of the risk committee.
B. Dr Omega may not be a member of the remuneration committee.
C. Dr Omega may be a member of the audit committee.
D. The chair of the board, Dr Vitamin, may not be a member of the audit committee.
11. Select the best alternative to complete the following sentence: In a governance context, stakeholders
are considered to be …
A. any group that could affect the company’s financial performance or be affected by the company’s
financial performance.
B. the shareholders of the company.
C. the community in which the company operates.
D. any group that can affect or be affected by the company’s operations.
12. Select the correct alternative to complete the following statement:
The “occurrence” management assertion means that:
A. amounts and other data relating to recorded transactions and events have been recorded
appropriately.
B. a transaction or event which has been recorded took place and pertains to the entity
C. transactions and events have been recorded in the proper accounts.
D. all assets, liabilities, transactions or events which should have been recorded have been recorded.
13. Select the correct alternative to complete the following sentence: The chair of the governing body
should….
A. be a member of the nomination committee.
B. also be the chief executive officer of the company.
C. also be the chair of the remuneration committee.
D. be a member of the audit committee.
14. Who is ultimately responsible for ensuring that the entity complies with the applicable laws and
regulations?
A. the risk committee
B. the audit committee
C. the governing body
_Question_Bank.
,AUE2602
Multiple Choice Questions
Part 1
1. Which ONE of the following internal controls is not an example of physical access control in a
computerised environment?
A. Entry and exit points to the data centre should be limited to one and may be under closed- circuit TV
surveillance.
B. With the exception of IT personnel, company personnel do not need to enter the data centre; access
should also be controlled.
C. Users should provide unique user IDs and passwords to gain access to the system.
D. 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.
2. Cluedo Limited is a large company that manufactures and sells board games. The board of directors
meets at least once a year when required... The members of the board of directors are:
Colonel Mustard Chairperson and Independent Non-executive
Director
Dr Black Chief Executive Officer (CEO)
Miss Scarlett CA (SA) Financial Director
Mrs White Operations Director
Mr Green Independent Non-executive Director
Prof Plum Independent Non-executive Director
Which ONE of the following statements is false?
A. Dr Black may be a member of the audit committee.
B. The chairperson of the board, Colonel Mustard, may not be a member of the audit committee.
C. Colonel Mustard may be a member of the risk committee.
D. Dr Black may not be a member of the remuneration committee.
3. The governing body should oversee and monitor, on an ongoing basis, how the consequences of the
organisation’s activities and outputs affect the status as a responsible corporate citizen.
Which ONE of the following alternatives is not an area over which such oversight and monitoring should
be performed against measures and targets agreed with management?
A. environment
B. society
C. economy
D. payroll
4. Application of the King IV Report is based on …
A. apply and explain
B. apply when necessary
C. apply or else.
D. apply or explain
5. Complete the following sentence:
Internal control is …
A. an effective method of addressing the risk of management override.
, B. an effective method of addressing collusion.
C. a dynamic process.
D. the sole responsibility of management and the board of directors.
6. Which ONE of the following alternatives is a function of the remuneration committee?
A. To assist with the process of identifying suitable members of the board.
B. To set and administer remuneration policies and ensure that these policies are being implemented
by the board.
C. To assist the board in setting and administering remuneration policies.
D. To consider the risk management policy and to plan and monitor the risk management process.
7. As part of systems development, which ONE of the following alternatives is not an advantage of
packaged software purchased?
A. Packages are upgraded on an ongoing basis
B. Technical support is available
C. Changes cannot be made by a purchaser of the software
D. Lower costs
8. HealthIQ Limited is a large company that provides medical aid and insurance services. The board of
directors meets as and when required, but at least once a year. The members of the board of directors
are:
Dr Vitamin Chair and independent non-executive director and a medical
doctor
Dr Omega Chief Executive Officer (CEO), and medical doctor
Mr Iron Financial director
Mrs Magnesium The Company secretary
Prof Antibiotics Registered auditor, the wife of one of the major suppliers of
inventory to HealthIQ Limited
Select the correct alternative to complete the following sentence: HealthIQ Limited does not comply with
Principle 7.8 of the King IV Report relating to the composition of the board. The board of directors
should comprise a balance of power with a majority of …
A. non-executive directors, of whom the majority must be independent.
B. independent directors.
C. executive directors.
D. non-executive directors.
, 9. Within how many days after a public or state-owned company has been incorporated should the board
appoint the members of the audit committee?
A. 30 business days
B. 60 business days
C. 50 business days
D. 40 business days
10. HealthIQ Limited is a large company that provides medical aid and insurance services. The board of
directors meets as and when required, but at least once a year. The members of the board of directors
are:
Dr Vitamin Chair and independent non-executive director and a medical doctor
Dr Omega Chief Executive Officer (CEO), and medical doctor
Mr Iron Financial director
Mrs Magnesium The Company secretary
Prof Antibiotics Registered auditor, the wife of one of the major suppliers of inventory to HealthIQ
Limited
Which ONE of the following statements is false?
A. Mr Iron may be a member of the risk committee.
B. Dr Omega may not be a member of the remuneration committee.
C. Dr Omega may be a member of the audit committee.
D. The chair of the board, Dr Vitamin, may not be a member of the audit committee.
11. Select the best alternative to complete the following sentence: In a governance context, stakeholders
are considered to be …
A. any group that could affect the company’s financial performance or be affected by the company’s
financial performance.
B. the shareholders of the company.
C. the community in which the company operates.
D. any group that can affect or be affected by the company’s operations.
12. Select the correct alternative to complete the following statement:
The “occurrence” management assertion means that:
A. amounts and other data relating to recorded transactions and events have been recorded
appropriately.
B. a transaction or event which has been recorded took place and pertains to the entity
C. transactions and events have been recorded in the proper accounts.
D. all assets, liabilities, transactions or events which should have been recorded have been recorded.
13. Select the correct alternative to complete the following sentence: The chair of the governing body
should….
A. be a member of the nomination committee.
B. also be the chief executive officer of the company.
C. also be the chair of the remuneration committee.
D. be a member of the audit committee.
14. Who is ultimately responsible for ensuring that the entity complies with the applicable laws and
regulations?
A. the risk committee
B. the audit committee
C. the governing body
