CCB Internal Auditing & Control Systems 2

Question 1

Which type of internal audit focuses on whether organizational resources are used efficiently and economically?

Accepted Answer

Performance audit

Answer

Performance audits (also called operational or efficiency audits) assess whether resources are being used economically and efficiently to achieve organizational objectives.

Question 2

A control that prevents errors or fraud from occurring in the first place is classified as a:

Accepted Answer

Preventive control

Answer

Preventive controls are designed to stop errors or irregularities before they occur, such as requiring dual authorization for large transactions.

Question 3

Under the COSO framework, which component addresses the organizational values and ethical tone set by leadership?

Accepted Answer

Control environment

Answer

The control environment is the foundation of COSO and includes the ethical values, management philosophy, and tone set by leadership.

Question 4

An auditor identifies that a single employee handles purchasing, receiving, and payment approval. This is best described as a:

Accepted Answer

Segregation of duties weakness

Answer

Segregation of duties requires that incompatible functions — such as authorizing, recording, and custody — be assigned to different individuals to reduce fraud risk.

Question 5

Which internal audit activity involves reviewing controls before a new system goes live?

Accepted Answer

Pre-implementation review

Answer

Pre-implementation reviews assess the adequacy of controls in a new system before it becomes operational, reducing the risk of control gaps after launch.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Internal Auditing & Control Systems 2