AUI3703 EXAM PAPER.

AUI3703 EXAM PAPER. The Internal Audit Process: Specific Engagements And Reporting. Which of the following sentences list some of the risks associated with internet connection… A. authentication, non-repudiation, confidentiality, availability and access. B. integrity, competence, authentication, validity, and authorisation. C. unauthorised access, loss of data integrity and refusal of service. D. confidentiality, application, integrity and authentication. 1.3 The most common motivation for management fraud is the existence of… A. vices, such as a gambling debt. B. job dissatisfaction. C. financial pressures on the organisation. D. the challenges of committing the perfect crime. 1.4 Which one of the following procedures forms part of an investigation into effectiveness? A. evaluation of the allocation of responsibilities and authority within an organisation. B. evaluation of the adequacy of management’s method of measuring effectiveness. C. evaluation of the staffing in relation to the functions that has to be performed. D. evaluation of the efficiency and application of operating systems and procedures. - 3 - AUI3703 MAY/June 2017 1.5 In the course of their work, internal auditors must be alert to fraud and other forms of white collar crime. The important characteristic that distinguishes fraud from other varieties of white collar crime is that … A. fraud is characterised by deceit, concealment or violation of trust. B. unlike other white-collar crimes, fraud is always perpetrated against an outside party. C. white-collar crime is usually perpetrated for the benefit of an organisation, but frauds benefit others. D. white-collar crime is usually perpetrated by outsiders to the detriment of the organisation but fraud is perpetrated by insiders for the benefit of the organisation. 1.6 The chief financial officer has requested the internal audit activity to perform an performance audit on operational expenditure. All staff members are, however, currently engaged in other audit projects. Which one of the following alternatives will play the smallest role in deciding whether or not to reassign some of the audit staff? A. During the year-end six months ago, the external auditors performed a financial audit on operational expenditure. B. Seven months ago, two new managers as well as an administrative person were appointed to assist with operational expenditure. C. During the yearly planning of the internal audit activity, an performance audit of operational expenditure was scheduled to be carried out in six months’ time. D. A legal case has been filed against the company for payments in arrear, and some of the internal auditors are assisting management with the investigation.