AAFM CTEP Quiz 2 Topic 6 Questions 6-10

Question: 1

For Registration of Charitable Trust an application should be submitted with Covering Letter, Court Stamp of ___________ and Certified True Copy of Trust Deed. The application should be made within _________ of creation of Trust. The application should be in Form as specified in _____________ under ____________ and duly notarized.

ARs.1, 1 month, Schedule I, Rule 1

BRs.10, 1 month, Schedule II, Rule 1

CRs.2, 3 months, Schedule II, Rule 6

DRs.100, 3 months, Schedule I, Rule 2

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Question: 2

Management of a publicly-held organization requires the internal audit activity to be involved with quarterly financial statements, which are made public and used internally. Which of the following explanations of management's decision is least plausible?

AManagement may be concerned about its reputation in the financial markets.

BManagement is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.

CManagement may be concerned about potential penalties that could occur if quarterly financial statements are misstated.

DManagement may perceive that having quarterly financial information examined by the internal auditors enhances the information's value to internal decision making.

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Question: 3

An internal audit activity (IAA) provided assurance services for an activity it was responsible for during the preceding year.

As a result, which IIA Code of Ethics principle is presumed to be impaired?

ACompetence.

BFlexibility.

CObjectivity.

DIndependence.

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Question: 4

Which of ihe following risk management activities is most appropriate for an internal auditor to undertake?

AImpose risk management processes.

BCoordinate risk management activities.

CImplement risk responses on management's behalf.

DReview the management of key risks.

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Question: 5

Which of the following would be considered a preventive control?

AA library control log.

BA review of exception reports.

CA password lock on a server.

DA software scan of financial records for irregularities.

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AAFM CTEP Quiz:2 Topic:6 Questions:6-10