1. A universitys executive board invites representatives of the student community, administrative staff and academic staff to...
Question:
1. A university’s executive board invites representatives of the student community, administrative staff and academic staff to participate in a discussion on proposed increases in student fees. Which one of the following four ethical values underpinning good corporate governance, as described in King IV, is best supported by this initiative?
A. Responsibility.
B. Accountability.
C. Pride.
D. Fairness.
2. In terms of the Sarbanes-Oxley Act (SOX), management’s report on internal control over financial reporting is required to include …
A. an assessment of the effectiveness of the risk management procedures.
B. a statement of the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting.
C. the use of professional information system (IS) auditors.
D. the use of COBIT as a control framework for evaluating internal controls.
3. The major issue embedded in the structure of modern corporations that has contributed to the corporate governance problem has been ...
A. the separation of ownership from control.
B. excessive executive compensation.
C. early retirement programmes.
D. the introduction of an integrated report.
4. Which one of the following is the best reason for the chief audit executive (CAE) to consider the organisation’s strategic plan in developing the annual internal audit plan?
A. To emphasise the importance of the internal audit function to the organisation.
B. To ensure that the internal audit plan supports the overall business objectives.
C. To make recommendations to improve the strategic plan.
D. To ensure that the internal audit plan will be approved by senior management.
5. In some organisations, internal auditing functions are outsourced. Outsourcing may be regarded as more advantageous by management of organisations because of the external services providers
A. structure. It may more easily accommodate engagement requirements in distant locations.
B. size. It can hire experienced, knowledgeable and certified staff.
C. size. It can offer continuous availability of staff unaffected by other priorities.
D. familiarity with the organisation. Its annual audits provide an in-depth knowledge of the organisation.
Expert Answer:
The detailed answer for the above question is provided below 1 The best ethical value underpinning good corporate governance supported by the universi... View the full answer
