lOMoAR cPSD| 48011787
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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
Failing to inform the board of all environmental law changes. best 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.
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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.
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3. Any unclaimed wage packages should be retained by the paymaster, who should lock
them away. 4.
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.
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
or she hands it to the wages clerk for it to be calculated and paid.
16. Select from the following alternatives the incorrect alternative with regard to
thecharacteristics of internal control.
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Downloaded by Vincent kyalo ()
, lOMoAR cPSD| 48011787
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
Failing to inform the board of all environmental law changes. best 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.
Downloaded by Vincent kyalo ()
, lOMoAR cPSD| 48011787
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.
Downloaded by Vincent kyalo ()
, lOMoAR cPSD| 48011787
3. Any unclaimed wage packages should be retained by the paymaster, who should lock
them away. 4.
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.
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
or she hands it to the wages clerk for it to be calculated and paid.
16. Select from the following alternatives the incorrect alternative with regard to
thecharacteristics of internal control.
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