Question 1
1E1-LS28
The Internal Control Integrated Framework from 1992 comprises five mutually-reinforcing components
including control activities. Control activities include all of the following except:
adequate separation of duties.
risk management.
independent verifications.
adequate documentation and records.
This Answer is Correct
Control activities are policies and procedures established and implemented to help ensure that the risk
responses are effectively carried out. The Internal Control Integrated Framework from 1992 model lists
six control activities:
1. The assignment of authority and responsibility (job descriptions)
2. A system of transaction authorizations
3. Adequate documentation and records
4. Security of assets
5. Independent verifications
6. Adequate separation of duties
Question 2
1E1-LS01
Which of the following has the most effect on the control environment?
Whether controls are changed on a regular basis.
Management philosophy and operating style.
Organizational structure.
Size of the company.
You Answered Correctly!
Management's philosophy and operating style send signals to employees about the importance of
establishing and following internal controls. The size of the company, the frequency with which controls
are changed, and the organizational structure by themselves do not impact the control environment as
much as management's philosophy.
Question 3
, 1E1-AT09
When management of the sales department has the opportunity to override the system of internal
controls of the accounting department, a weakness exists in:
information and communication.
monitoring.
risk management.
the control environment.
This Answer is Correct
The control environment includes the attitude of management toward the concept of controls.
Question 4
aq.ic.phil.003_1802
The Committee of Sponsoring Organizations (COSO) internal control framework consists of five
interrelated components. Which of the following is not one of these components?
Risk assessment
Information and communication
Management risk
Monitoring
This Answer is Correct
This answer is correct. The five interrelated components are the control environment, risk assessment,
control activities, information and communication, and monitoring.
Question 5
1E1-LS42
Which one of the following would be most effective in deterring the commission of fraud?
* Source: Retired ICMA CMA Exam Questions.
Hiring ethical employees, employee training, and segregation of duties.
Policies of strong internal control and punishments for unethical behavior.
Employee training, segregation of duties, and punishment for unethical behavior.
1E1-LS28
The Internal Control Integrated Framework from 1992 comprises five mutually-reinforcing components
including control activities. Control activities include all of the following except:
adequate separation of duties.
risk management.
independent verifications.
adequate documentation and records.
This Answer is Correct
Control activities are policies and procedures established and implemented to help ensure that the risk
responses are effectively carried out. The Internal Control Integrated Framework from 1992 model lists
six control activities:
1. The assignment of authority and responsibility (job descriptions)
2. A system of transaction authorizations
3. Adequate documentation and records
4. Security of assets
5. Independent verifications
6. Adequate separation of duties
Question 2
1E1-LS01
Which of the following has the most effect on the control environment?
Whether controls are changed on a regular basis.
Management philosophy and operating style.
Organizational structure.
Size of the company.
You Answered Correctly!
Management's philosophy and operating style send signals to employees about the importance of
establishing and following internal controls. The size of the company, the frequency with which controls
are changed, and the organizational structure by themselves do not impact the control environment as
much as management's philosophy.
Question 3
, 1E1-AT09
When management of the sales department has the opportunity to override the system of internal
controls of the accounting department, a weakness exists in:
information and communication.
monitoring.
risk management.
the control environment.
This Answer is Correct
The control environment includes the attitude of management toward the concept of controls.
Question 4
aq.ic.phil.003_1802
The Committee of Sponsoring Organizations (COSO) internal control framework consists of five
interrelated components. Which of the following is not one of these components?
Risk assessment
Information and communication
Management risk
Monitoring
This Answer is Correct
This answer is correct. The five interrelated components are the control environment, risk assessment,
control activities, information and communication, and monitoring.
Question 5
1E1-LS42
Which one of the following would be most effective in deterring the commission of fraud?
* Source: Retired ICMA CMA Exam Questions.
Hiring ethical employees, employee training, and segregation of duties.
Policies of strong internal control and punishments for unethical behavior.
Employee training, segregation of duties, and punishment for unethical behavior.
