AAFM CTEP Quiz 1 Topic 3 Questions 1-5

Question: 1

Which of the following is not an appropriate activity for internal auditors to perform?

ARecommend management seek a consulting firm to advise on outsourcing.

BHighlight matters that require management's attention.

CImplement solutions for specific organizational problems.

DAccumulate data, obtain varying views, and report information to senior management.

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Question: 2

According to IIA guidance, which of the following statements is true regarding periodic internal assessments of the internal audit activity?

AInternal assessments are conducted to benchmark the internal audit activity's performance against industry best practices.

BInternal assessments must be performed at least once every five years by a qualified assessor.

CAn internal auditor may perform a peer review of a colleague's workpapers, as long as the auditor wasn't involved in the audit under review.

DFollow-up to ensure appropriate improvements are implemented is a recommended, but not mandatory, element of internal assessments.

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Question: 3

An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?

APreventive controls.

BDetective controls.

CSoft controls.

DDirective controls.

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Question: 4

What is the additional advantage of facilitated workshops, in comparison with structured interviews, used when testing the effectiveness of entity-level controls?

ADuring facilitated workshops, people more openly say things to internal auditors than during private interviews.

BInternal auditors do not need other sources of information, as the data gathered during facilitated workshops is sufficient.

CFacilitated workshops create a synergy of discussion that can bring multiple perspectives to the same issue.

DThe testimonial evidence obtained during facilitated workshops is generally considered more reliable.

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Question: 5

Which two of the following are preventive controls in a check disbursement process?

1. Daily reconciliation of the bank account used for check disbursements and prompt follow-up of un-reconciled items.

2. Segregation of the following duties: establishing new vendors, approving checks, and reconciling the bank account.

3. An activity report detailing who accesses the check disbursement system and the nature of any action taken in the system.

4. Evidence of strong access controls ensuring that authorized individuals have access only to the functions related to their responsibilities.

A1 and 3.

B1 and 4.

C2 and 3.

D2 and 4.

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AAFM CTEP Quiz:1 Topic:3 Questions:1-5