External AND Internal Audit QUIZ JUNE 2019 PDF

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Short objective type quiz of audit and assurance. latest 2020 year. by miss basma. From expert teachers and books....

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EXTERNAL AND INTERNAL AUDIT QUIZ JUNE 2019 Q.1 An internal audit function is usually legally required in: 1. All large organisations 2. Large companies only 3. All companies 4. None of the above 5. Q.2 External auditor reports are addressed to which of the following groups: 1. 2. 3. 4.

The executive directors The audit committee The shareholders The board of directors

Q.3 The primary purpose of an internal audit is to: 1. 2. 3. 4.

Ensure that the financial statements are true and fair Prepare management accounts Review risk management processes and internal controls Suggest operational strategies to the directors

Q.4 All of an organisation’s internal controls would be of interest to the external auditor. Is the statement: TRUE or FALSE? Why? Q.5 Which of the following groups is responsible for the creation and operation of satisfactory operating controls within an organisation? 1. The board of directors 2. The audit committee 3. The internal auditors

4. The external auditors 5. Q.6 Which of the following is not one of the components of internal control? 1. 2. 3. 4. 5.

The entity’s risk assessment The documentation of control procedures The monitoring of controls The control environment

Q.7 Which category of controls would proper segregation of duties be classified as part of? 1. Preventative 2. Detective 3. Corrective 4. Reactive (14 marks)...