Question 1

An internal auditor discovered evidence of a fraud earned out by an employee who worked in the accounting department. The auditor concluded that the fraud had been possible because of unsatisfactory segregation of duties in the department.

Poor segregation between which of the following duties would provide the best opportunity for this type of fraud to occur?

AIssuing both sales invoices and purchase invoices.

BIssuing sates invoices, and recording payments to suppliers in the ledger.

CReceiving payments from customers, and recording them in the ledger

DReceiving purchase invoices, and banking payments from customers.

Answer : A

Question 2

Which of the following statements describes an example of a value for money audit?

AIdentifying and appraising weaknesses in the organisation's management team

BAnalysing the reported financial performance of one of the organisation's branches

CAssessing the organisation's conformance with employment laws and regulations

DAppraising the efficiency of one of the organisation's manufacturing processes

Answer : D

Question 3

Company X has a good CSR record, and ensures that its employees enjoy safe working conditions, reasonable work hours and are paid fairly Company Y is known to employ child laborers in the countries in which it operates, where the practice is not illegal Company X has entered into a point business partnership with Company Y to carry out a specific project. In order to comply with the OECD Guidelines, what best describes Company X's responsibilities?

ACompany X would only have a duty to try to stop Company Y from employing child labour if it was illegal in the countries concerned

BCompany X does not have any responsibilities, as its own record is good and it is not employing any children

CIt should ensure that it does not inadvertently use any of Company Y^s child workers in carrying out its own work on the project

DIt should attempt to persuade Company Y of its ethical responsibilities to stop employing children.

Answer : C

Question 4

Which of the following statements is correct in relation to business organisations?

AIn the event of a company limited by shares going into insolvent liquidation the shareholders become fully liable for the debts of the company

BAlthough a public company may offer its shares and securities to the general public it can only do so if it is listed on a stock exchange

CA limited liability partnership is a separate legal entity distinct from the partners in a similar way to how a private company is a legal entity distinct from its shareholders and directors

DA general partnership and a private limited company can be formed without the need for any written documents

Answer : B

Question 5

Which of the following statements correctly defines the ethics of utilitarianism?

AThe guiding principle of conduct should be the greatest happiness for the greatest number

BThe guiding principle of conduct should be the consideration of the duty to respect other rational beings

CThe guiding principle of conduct should be to do no harm

DThe guiding principle of conduct should be to act with justice and courage