1) The internal auditing standards assign the responsibility for providing appropriate audit supervision to the ..

(a) Senior auditor

(b) Director of internal auditing

(c) Audit supervisor

(d) Audit committee

(2). The Australian Institute of Criminology (AIC) asserts that three factors can explain fraud. Which of the following is not considered as one of the factors asserted by the AIC?

1. Pressure, opportunity, and rationalization
2. Absence of effective and efficient internal controls
3. Availability of suitable targets
4. Supply of motivated and willing offenders
5. All the above
6. None of the above

3) Which of the following is not an objective of internal controls of a business entity

1. Ensuring that policies and procedures effected by external auditors are implemented within an organization
2. Ensuring that standards and applicable policies are operating as investors intended
3. Provision of reliable and timely financial and nonfinancial information for external use only
4. (a) and (b) only
5. (a) and (c)
6. All the above

(4) Of the five major interrelated components of the internal controls framework (COSO) which one represents the overall atmosphere or organizational culture employees operate in (tone-at-the-top)?

1. Control environment
2. Risk Assessment
3. Control Activities
4. Information and communication systems support
5. Monitoring

5) ........is an interrelated components of the internal controls framework (COSO) which addresses policies and procedures that help ensure management directives are carried out.

1. Control environment
2. Risk Assessment
3. Control Activities
4. Information and communication systems support
5. Monitoring

(6) The phases of audit engagements consists of the following, except.

1. Reporting phase
2. Substantive testing phase
3. Effective testing phase
4. Internal control testing phase
5. Planning phase
6. (a) and (b) only