Internal control quiz

Who is responsible for the implementation of internal controls in NGOs?

• Board

• Management

• Auditor

• Donors

Which of the following is a key component of internal controls specific to nonprofit organizations

• Profit margin analysis

• Program effectiveness assessment

• Inventory management

• Product pricing strategy

In the context of nonprofit governance, which entity is typically responsible for setting policies, overseeing finances, and ensuring the organization's mission is fulfilled?

• Donors

• Board

• Members

• Social Welfare Council

What is the primary role of governance in an NGO?

• Fund Raising

• Strategic Direction and Oversight

• Day to Day Operations

• Reporting

What is the first step in designing an effective internal control system?

• Developing Policies

• Implementing Policies

• Conducting a Risk Assessment

• Conducting Audit

What is the term for dividing responsibilities among multiple individuals to prevent fraud?

• Delegation of authority

• Segregation of duties

• Staff rotation

• Risk sharing

What is the primary objective of NGO procurement processes?

• To support local suppliers exclusively

• To minimize paperwork

• To achieve value for money while ensuring compliance

• To spend the least amount of money

An NGO is conducting a procurement for furniture. The evaluation criteria are 50% price, 50% quality and delivery time. The bids are as follows:

• Vendor A: Rs. 10,000, 100% quality score, Delivery in 1 Day

• Vendor B: Rs. 8,000, 50% quality score, Delivery in 5 Days

• Vendor C: Rs. 5,000, 30% quality score, Delivery in 10 Days

• Based on the evaluation criteria, which vendor provides the best value for money?

• Vendor B

• Vendor A

• Vendor C

• Vendor A and Vendor B

How often should NGOs review their governance and internal control systems?

• Every Month

• Annually or as required by risks

• Only during audits

• Once every five years

What is the correct order for procurement of goods ?

• Purchase Requisition - Purchase Order - Comparative Analysis - Quotations - Goods Receipt

• Purchase Order - Purchase Requisition - Comparative Analysis - Quotations - Goods Receipt

• Purchase Requisition - Quotations - - Comparative Analysis - Purchase Order- Goods Receipt

• Direct Purchase from shop