According to the International Professional Practices Framework, which of the following is the appropriate division of responsibilities for the coordination of internal and external audit efforts? I. Oversight of Work Coordination of Activities Chief audit executive Senior management II. Board Chief audit executive III. Chief financial officer Chief audit executive IV. Board Chief financial officer […]

Which of the following is an appropriate role for the board in governance? A. Preparing written organizational policies that relate to compliance with laws, regulations, ethics, and conflicts of interest. B. Ensuring that financial statements are understandable, transparent, and reliable. C. Assisting the internal audit activity in performing annual reviews of governance. D. Working with […]

Human resources and payroll are separate departments. Which of the following combinations would provide the best segregation of duties? A. Human resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees. B. Human resources personnel add employees, review and submit payroll hours to the payroll department for processing, and […]

Which of the following factors affects the control risk of a company? A. Potential problems like technological obsolescence. B. Unusual pressures on management. C. Complex accounts that require expert valuations. D. Segregation of duties.

The top three sales representatives for a company consistently include non-allowable charges on their expense reports. Line management is reluctant to deny reimbursement of the charges for fear of losing the sales representatives. This situation has the greatest negative impact on which of the following internal control components? A. Monitoring. B. Control environment. C. Information […]