PSMS_Exercise 1.1

1. It is defined as an integral process that is effected by an agency’s management and personnel, and is designed to address risks, and provide reasonable assurance that in pursuit of the agency’s mission, the general objectives are being achieved.

• a.       Internal Audit

• b.       Internal Control

• c.       Controls

• d.       External Control

1. What internal control objective deals with adherence to laws, regulations, contracts, managerial policies, and management directives.

• 1. Safeguarding of assets or resources

• 1. Reporting

• 1. Compliance

• 1. Operations

1. Operations objectives pertain to the effectiveness and efficiency of the agency’s operations, including operational and financial performance goals.

• 1. True

• 1. False

1. Which is not the basic type of control?

• 1. Detective        

• 1. Corrective

• Pervasive

• Preventive

1. Effective internal controls give absolute assurance in achieving the basic objectives of the agency.

• 1. True

• 1. False

1. Control is the specific process of exercising or directing influence over the activities of an object, organism, or system. 

• 1. True

• 1. False

1. What controls that are designed to identify a problem and bring it to management’s action for resolution and correction?

• 1. a.       Preventive

• 1. b.       Detective

• c.       Corrective

1. The purpose is to identify the requirements for establishing an effective internal control system for government agencies with the requisite general objectives, internal control components, and levels of agency structure where internal control operates.

• 1. Internal Control Framework for the Philippine Public Sector

• 1. Internal Control Framework for the Philippine Private Sector

• 1. Internal Control Standards

• 1. Internal Control System

1. One of the limitations on internal control may result from organizational changes which may render the ICS and manuals obsolete.

• 1. TRUE

• 1. FALSE

1. The importance of internal control are the following, except:

• 1. Protection of staff members and other stakeholders against disinformation

• 1. Profitability or sustainability

• 1. Prevention and detection of fraud and error

• 1. Preparation of unreliable financial information