Group 3 - International Audit

1. Which is not the purpose of Risk analysis?

• A. It supports risk based audit decisions

• B. Assists the Auditor in determining Audit objectives

• C. Ensures absolute safety during the Audit

• D. Assists the Auditor in identifying risks and threats

2. Which term best describes the difference between the sample and the population in the sampling process?

• A. Precision

• B. Tolerable error rate

• C. Level of Risk

• D. Analytical Data

3. Name one of the purposes of creating Business Continuity Plan

• A. To maximise the number of decisions made during an incident

• B. To minimise decisions needed during a crisis

• C. To lower business insurance premiums

• D. To provide guidance for federal regulations

4. Failing to prevent or detect a material error would represent which type of risk?

• A. Overall Audit Risk

• B. Detection Risk

• C. Inherent Risk

• D. Control Risk

5. Which is one of the bigger concerns regarding asset disposal?

• A. Residual Asset Value

• B. Employees taking disposed property home

• C. Standing data

• D. Environmental Regulations

6. Who should issue ogranisational policies?

• A. Policies should originate from the bottom and move upto the middle management level for approval

• B. The policy should be issued in accordance with the approved standards by the middle management level

• C. Policy can be issued by any level of management based on a case to case basis

• D. The policy should be signed and enforced by the highest level of management

7. A program check that ensures data entered by a data entry operator is

complete is an example of a

• A. Detective Control

• B. Preventive Control

• C. Corrective Control

• D. Redundancy Control

8. What is the primary objective in problem escalation?

• A. Improve customer satisfaction

• B. Optimise the number of skilled personnel

• C. Ensure the correct response

• D. Prove that the IT staff is competent

9. Which of the following is LEAST important when Auditors review Internal Controls?

• A. The existence of an Audit Committee in the Organisation

• B. The Organisational structure and the Management style used by the Organisation

• C. The existence of a Budgeting System

• D. The number of Personnel working for the Organisation

10. What is the best example of why plan testing is important?

• A. To prove the plan worked the first time

• B. To find the correct problems

• C. To show the team that is not pulling their own weight

• D. To verify that everyone shows up at the recovery site