Internal Control & Risk – Quiz – CIA PART 1

August 20, 2020 VMS CIA, QUIZ - MCQs 0

Here is a quiz on the Internal Control & Risk from the CIA Part 1. The quiz is restricted to 75 seconds a question in line with the time that the exam provides. HAVE FUN !

Created on August 20, 2020 By

VMS

Internal Control & Risk - Quiz

Here is a quiz on the Internal Control & Risk from the CIA Part 1. The quiz is restricted to 75 seconds a question in line with the time that the exam provides. Hope you enjoy !

1 / 10

Residual risk is calculated as which of the following?

Known risks minus unknown risks.

Actual risks minus probable risks.

Probable risks minus possible risks

Potential risks minus covered risks.

2 / 10

According to the IIA Planning Standard, the term “risk appetite” means which of the following?

Risk avoidance.

Risk Limitation.

Risk Acceptance.

Risk Spreading.

3 / 10

A comprehensive management control system that considers both financial and nonfinancial measures relating to a company’s critical success factors is called a(n):

Economic value added system.

Activity-based costing system.

Market value added system.

Balanced scorecard system.

4 / 10

Which of the following management control systems measures performance in terms of operating profits minus the cost of capital invested in tangible assets?

Open-book management system.

Economic value added system.

Activity-based costing system.

Market value added system.

5 / 10

Organizational procedures allow employees to anticipate problems. This type of control is known as:

Feedback control.

Strategic Control

Feedforward Control

Performance Appraisal

6 / 10

As part of a total quality control program, a firm not only inspects finished goods but also monitors product returns and customer complaints. Which type of control best describes these efforts?

Feedback Control

Feed-forward Control

Production Control

Inventory Control

7 / 10

To be successful, large companies must develop means to keep the organization focused in the proper direction. Organization control systems help keep companies focused. These control systems consist of which of the following components?

Budgeting, financial ratio analysis, and cash management.

Objectives, standards, and an evaluation-reward system.

Role analysis, team building, and survey feedback. Incorrect. These are several types of organizational development interventions.

Coaching, protection, and challenging assignments. Incorrect. Mentoring fulfils several types of career enhancement functions, including these.

8 / 10

Control has been described as a closed system consisting of six elements. Identify one of the six elements.

Setting performance standards.

Adequately securing data files

Approval of audit charter

Establishment of independent audit function

9 / 10

The three basic components of all organizational control systems are:

Objectives, standards, and an evaluation-reward system.

Plans, budgets, and organizational policies and procedures.

Statistical reports, audits, and financial controls.

Inputs, objectives, and an appraisal system.

10 / 10

An exception report for management is an example of which of the following?

Preventive Control

Detective Control

Corrective Control

Directive Control

Your score is

The average score is 48%

About VMS 36 Articles

An Internal Auditor by profession and passionately taking my baby steps into data science with hope to contribute something valuable to the society someday. This blog is a long time dream and thanks to the lock down due to the pandemic it sees it's fruition. My posts will predominantly be on Internal Audit & Data Analytics & related posts, but will also have useful posts & quizzes related to courses relevant to the main topics & also certain irrelevant topics on my travel, music, movies and few other things I try my hands on. Hoping my posts help you learn new things, inspire you to do new things if not somewhat enjoyable. Happy Reading ! Connect with me here > https://www.linkedin.com/in/meenakshi-sundaram-b18a4399/