8/4/2021 Quiz: Module 2 (3BSA-1): Attempt review

Dashboard My courses ELECT4-18 Quizzes Quiz: Module 2 (3BSA-1)

Started on Wednesday, 4 August 2021, 7:05 PM

State Finished
Completed on Wednesday, 4 August 2021, 7:29 PM
Time taken 23 mins 33 secs
Grade 15.00 out of 20.00 (75%)

Question 1
Correct

Mark 1.00 out of 1.00

As part of planning an engagement, the internal auditor in charge does all of the following except

a. Determine the period covered.

b. Distribute reports from meetings with management.

c. Conduct meetings with management responsible for the activity under review.
management na ang bahala dito.
d. Determine to whom engagement results will be communicated. 

The correct answer is: Determine to whom engagement results will be communicated.

Question 2
Correct

Mark 1.00 out of 1.00

Data-gathering activities such as interviewing operating personnel, identifying standards to be used to evaluate
performance, and assessing risks inherent in a department’s operations are typically performed in which phase of
an audit engagement?

a. Engagement program development.

b. Preliminary survey. 

c. Examination and evaluation of evidence.

d. Field work.

The correct answer is: Preliminary survey.

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Question 3
Incorrect

Mark 0.00 out of 1.00

Documentation required to plan an internal audit engagement includes information that

a. Planned engagement work will be completed on a timely basis. 

b. Internal audit activity resources are efficiently and effectively employed.

c. Resources needed to complete the engagement were considered.

d. Intended engagement observations have been clearly identified.

The correct answer is: Resources needed to complete the engagement were considered.

Question 4
Correct

Mark 1.00 out of 1.00

During a preliminary survey of the accounts receivable function, an internal auditor discovered a potentially major
control deficiency while preparing a flowchart. What immediate action should the internal auditor take regarding
the weakness?

a. Report it to the level of management responsible for corrective action.

b. Perform sufficient testing to determine its cause and effect.

c. Highlight the weakness to ensure that procedures to test it are included in the engagement work 
program.

d. Schedule a separate engagement to evaluate that segment of the accounts receivable function.

The correct answer is: Highlight the weakness to ensure that procedures to test it are included in the engagement
work program.

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Question 5
Correct

Mark 1.00 out of 1.00

In planning an engagement, the internal auditor establishes objectives to address the risk associated with the
activity. Risk is the

a. Failure to adhere to organizational policies, plans, and procedures or to comply with relevant laws and
regulations.

b. Uncertainty of the occurrence of an event that could affect the achievement of objectives. 

c. Failure to accomplish established objectives and goals for operations or programs.

d. Possibility that the balance or class of transactions and related assertions contains misstatements that
could be material to the financial statements.

The correct answer is: Uncertainty of the occurrence of an event that could affect the achievement of objectives.

Question 6
Correct

Mark 1.00 out of 1.00

In the planning phase, the scope of an internal audit engagement is defined by the

a. Preliminary survey.

b. Engagement objectives. 

c. Engagement work program.

d. Scheduling and time estimates.

The correct answer is: Engagement objectives.

Question 7
Incorrect

Mark 0.00 out of 1.00

Internal auditors must develop and document a plan for each engagement. The planning process should include
all the following except

more likely this is already part of the execution

a. Identifying sufficient information to achieve engagement objectives.process.

b. Establishing engagement objectives and scope of work.

c. Determining how, when, and to whom the engagement results will be communicated. 

d. Obtaining background information about the activities to be reviewed.

The correct answer is: Identifying sufficient information to achieve engagement objectives.

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Question 8
Correct

Mark 1.00 out of 1.00

Internal auditors must make a preliminary assessment of risks when conducting an assurance engagement. This
assessment may involve quantitative (objective) and subjective factors. The least subjective factor is

a. The evaluation of internal control.

b. The auditor’s assessment of management responses. least subjective, edi more on quantitative.
Since A-C is more on application of judgment.
c. Changes in the auditee’s business forecast.

d. The organization’s recognized losses on derivatives. 

The correct answer is: The organization’s recognized losses on derivatives.

Question 9
Incorrect

Mark 0.00 out of 1.00

The internal auditor has gained an understanding of the design of an engagement client’s internal controls. The
most appropriate next step is to

a. Contact the engagement client’s direct supervisor to recommend that the head of the department or
function under audit is transferred or terminated.

b. Test controls to determine whether they are functioning as designed. 

c. Halt the engagement and issue a report about inadequate controls.

d. Draw preliminary conclusions about internal control.

The correct answer is: Draw preliminary conclusions about internal control.

Question 10
Correct

Mark 1.00 out of 1.00

Which of the following factors should an internal auditor consider when planning an audit of an activity?

a. The qualifications of management, the significant risks, and the control system.

b. The number of employees involved, the control system, and the recommendations of external auditors.

c. The objectives of the activity, the significant risks, and the control system. 

d. The objectives of the activity, the number of employees involved, and the control system.

The correct answer is: The objectives of the activity, the significant risks, and the control system.

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Question 11 tinitiyak mo kung oks ba yung ginawang

Incorrect projection.

Mark 0.00 out of 1.00

this statement is illogical.

Which of the following is an appropriate statement of an engagement objective?

a. To determine whether inventory stocks are sufficient to meet projected sales.

b. To search for the existence of obsolete inventory by computing inventory turnover by product line. 
this is part of the process, but it is not the
c. To observe the physical inventory count. objective itself.
definitely this is not an objective.
d. To include information about stockouts in the final engagement communication.

The correct answer is: To determine whether inventory stocks are sufficient to meet projected sales.

Question 12
Correct

Mark 1.00 out of 1.00

Which of the following is least likely to be placed on the agenda for discussion at a pre-engagement meeting?

a. Objectives and scope of the engagement.

this could be later on the engagement na, since kailangan 
b. Sampling plan and key criteria.
mo munang ma-understand din yung control dito.
c. Expected starting and completion dates.

d. Client personnel needed.

The correct answer is: Sampling plan and key criteria.

Question 13
Incorrect

Mark 0.00 out of 1.00

Which of the following is not likely to be an assurance engagement objective related to auditing governance
activities?

a. Assess compliance with ethics policies.

b. Determine the operating effectiveness of the whistleblower process. 

determining customer satisfaction has
c. Determine customer satisfaction with shareholder communications. nothing to do with the governance.

d. Evaluate the design adequacy of board education and training.

The correct answer is: Determine customer satisfaction with shareholder communications.

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Question 14
Correct

Mark 1.00 out of 1.00

Which of the following possible engagement objectives would lead to a test of the efficiency of an organization’s
use of labor resources?

a. To determine that only authorized employees are paid.

b. To determine that the quality of performance by labor meets organizational standards.

c. To determine that employees are assigned to work situations equivalent to their training and skill level. 

d. To determine that all employees are paid in accordance with union wages.

The correct answer is: To determine that employees are assigned to work situations equivalent to their training
and skill level.

Question 15
Correct

Mark 1.00 out of 1.00

While planning an engagement, an internal auditor establishes engagement objectives to describe what is to be
accomplished. Which of the following is a key issue to consider in developing engagement objectives?

a. The recipients of the final engagement communication.

b. The qualifications of the internal auditing staff selected for the engagement.

c. Recommendations of the engagement client’s employees.

d. Risks associated with the activities to be reviewed. 

The correct answer is: Risks associated with the activities to be reviewed.

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Question 16
Correct

Mark 5.00 out of 5.00

Match the principle to the internal control system component.

Evaluates
and communicates deficiencies Monitoring Activities 

Identifies
and analyzes risk Risk Assessment 

Exercises
oversight responsibility Control Environment 

Uses
relevant information Information & Communication 

Selects and
develops general controls over technology Control Activities 

The correct answer is:

Evaluates
and communicates deficiencies → Monitoring Activities,
Identifies
and analyzes risk → Risk Assessment,
Exercises
oversight responsibility → Control Environment,

Uses
relevant information → Information & Communication,
Selects and
develops general controls over technology → Control Activities

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