PRACTICE QUESTIONS(MOSTLY ASKED)
1. Which organization developed the framework most commonly used by the auditing
profession for bench marking internal controls of non-issuers?
2. As specified in Title II of the Sarbanes Oxley Act (SOX), which of the following
non-audit services to audit clients are not prohibited from being performed by
a registered public accounting firm if the pre-approved by the audit
committee and disclosed to the SEC?
3. What is the most likely opportunity for theft or fraud by employees?
4. As part of its system of internal control, X Company requires that all sales orders
received from customers receive approval from the credit department before they are
fulfilled. What type of control activity is this?
5. According to professional standards, which of the following circumstances will
impair a CPA’s independence?
1. Which organization developed the framework most commonly used by the auditing
profession for bench marking internal controls of non-issuers?
2. As specified in Title II of the Sarbanes Oxley Act (SOX), which of the following
non-audit services to audit clients are not prohibited from being performed by
a registered public accounting firm if the pre-approved by the audit
committee and disclosed to the SEC?
3. What is the most likely opportunity for theft or fraud by employees?
4. As part of its system of internal control, X Company requires that all sales orders
received from customers receive approval from the credit department before they are
fulfilled. What type of control activity is this?
5. According to professional standards, which of the following circumstances will
impair a CPA’s independence?
