CCB Internal Auditing & Control Systems 4

Question 1

A company requires two senior managers to approve wire transfers over $500,000. This is an example of:

Accepted Answer

Dual control

Answer

Dual control (also called dual authorization) requires two authorized individuals to approve a single transaction, reducing the risk of unauthorized transfers.

Question 2

In an IT environment, which control ensures that only authorized users can access sensitive financial data?

Accepted Answer

User access management controls

Answer

User access management controls, including role-based access and periodic access reviews, ensure that only authorized individuals can view or modify sensitive data.

Question 3

The 'tone at the top' concept is MOST directly associated with which element of a strong control environment?

Accepted Answer

Management's commitment to integrity and ethical values

Answer

Tone at the top refers to senior leadership's visible commitment to ethics and compliance, which sets the behavioral standard for the entire organization.

Question 4

Which internal audit technique compares financial ratios and trends over time to identify unusual fluctuations?

Accepted Answer

Analytical procedures

Answer

Analytical procedures involve evaluating financial information through analysis of relationships and trends, helping auditors identify areas requiring further investigation.

Question 5

An organization's internal audit charter should PRIMARILY:

Accepted Answer

Define the purpose, authority, and responsibility of the internal audit function

Answer

The internal audit charter is a formal document approved by the board that defines the function's purpose, authority, scope, and reporting relationships.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Internal Auditing & Control Systems 4