Group 5 MCQ

Group 5- MCQ
1. Each audit issue starts with a description of the management activity or transactional control
that contains an issue. The following are the key criteria for this description. EXCEPT.
a. Short, concise, accurate, clear
b. Include a statement of the objective of the control or management activity
c. Include a statement of the process of the control or management authority
d. Quantifying the topic of the control or management activity
2. Each weakness description must not include a statement about the cause of the risk.
a. True
b. False
3. S1: The Cycle-time target is the allowable cycle time from the start of the engagement
planning till the publication of the audit report, measured in calendar days.
S2: Cost target strictly focus only in control the time budgeting and actual time spending
of the purchased audit services that support the execution of the audit engagement.
a. S1 is true, S2 is false c. Both statements are true
b. S1 is false, S2 is true d. Both statements are false
4. Which of the following in NOT an objectives that focus on the audit engagement’s control
processes?
a. Cost target c. Cycle-time target
b. Productivity target d. Work quality targets
5. The first element in the flow or storyline of the executive summary. This describes the type
of internal audit work that was performed, on what management activity it was executed,
and to what management objectives the assurance is provided.
a. Audit engagement scope
b. Audit engagement objective
c. Audit rating
d. Audit opinion
6. The quality of the risk management and internal controls is insufficient for the
processes reviewed. There are quite some areas of the reviewed sub-process which need
improvement.
a. Poor weak
b. Inadequate, unsatisfactory
c. Good,strong
d. Adequate, satisfactory.
7. The target added value of the audit engagement for the board and management must
consider which of the following?
a) The quality of the auditor’s assessment of the significance of the identified audit
issues
b) the satisfaction of local management or process owner with the audit
engagement work
c) the completeness of the issue descriptions; the number of required supervisory
hours/days
d) addressing their major business concerns and risks
8. The one who is responsible for the management activity or subject matter is\are?
a) Auditees with actions
b) 2nd lines of defense
c) Process Owner or manager
d) Layers between the process owner till the board
9. All of the following are key elements of the audit opinion. EXCEPT.
a.) Link to Audit Objective
b.) Link to Significant Risks
c.) Link to Business
d.) Link to Lower Organization
10. This _____________is one of the most important elements of the audit report and the
executive summary, and must be expressed in a few sentences.
a.) audit report
b.) audit rating
c.) audit opinion
d.) audit objective
11. S1: A risk is defined as an event that may cause a shortfall on the achievement of an
objective.
S2: Distribution list is not a key elements of resolving disagreements.
a.)S1 is false; S2 is true

b.) S1 is true; S2 is false
c.) Both statement are true
d.) Both statement are false
12. All of the following are types of risk mitigation except one?
a. avoidance
b. reduction
c. performance
d. acceptance
13. Which of the following is engagement detection risk?

a. refers the overall risk associated with an audit engagement.
b. the risk that an inappropriate conclusion is expressed when the information on the
subject matter is materially misstated.
c. the audit team leader gives an opinion, expressed as a reasonable assurance
conclusion, if appropriate in the circumstances of the engagement.
d. obtain sufficient appropriate audit evidence to reduce audit risk to an acceptably low
level.
14.All of the following are types of risks in computing the Audit Engagement Risk. EXCEPT:
a) Subject Matter Inherent Risk

b) Subject Matter Control Risk
c) Audit Engagement Risk Focus
d) Audit Engagement Detection Risk
1. Which of the following elements that influence level of the detection of risks determines
the Audit Engagement plan, scope, focus, and the interpretation of the audit results.
a) Level of Quality
b) Level of Formalisation and the Extensiveness
c) Level of Supervision and Quality Control
d) Level of Communication and Coordination with Management
Answer key
1. C
2. B
3. A
4. D
5. B
6. B
7. D
8. C
9. D
10. C
11. B
12. C
13. A
14. C
15. D

Group 5 MCQ

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Group 5- MCQ

a.)S1 is false; S2 is true

13. Which of the following is engagement detection risk?

a) Subject Matter Inherent Risk

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