Quiz 1/MAS 4 (BSA 2B MAS4 2NDSEM AY2020-2021)Immersive Reader

Topic 1 The Accountancy Profession

Topic 2 Corporate Governance

1.Richard, CPA, performs accounting services for Norton Corporation. Norton wishes to offer shares to
the public and asks Richard to audit the financial statements. Richard refers Norton to Cruz, CPA, who is
more competent in the area of registration statements. Cruz performs the audit of Norton's financial
statements and subsequently thanks Richard for the referral by giving Richard a portion of the audit fee.
Richard accepts the fee. Who, if anyone, has violated professional ethics?
(0/1 Point)

Only Richard.

Both Richard and Cruz.

Only Cruz.

Neither Richard nor Cruz.

2.S1: The BROC should be composed of at least three members, the majority of whom should be
independent directors, including the Chairman.
S2: The Board should establish an Internal Relations Office (IRO) to ensure constant engagement with its
shareholders. The IRO should be present at every shareholders’ meeting.
(0/2 Points)

Only S1 is true

Only S2 is true

Both are true

Both are false

3.Which of the following statements concerning the practice of accountancy is correct?

(1/1 Point)

A CPA is in the practice of accountancy in the government when he/she is involved in the audit or
verification of financial transactions and accounting records of his/her clients.

A CPA is in public accountancy when he/she renders his/her professional services as a CPA to more than
one client on a fee basis in the design, installation, review, and revision of accounting systems and
controls.

A CPA is in the practice of accountancy in the academe/education when he/she is in an educational

institution teaching any of the subjects included in the BSA curriculum.

A CPA is in the practice of accountancy in commerce and industry when his/her position requires civil
service eligibility as a Certified Public Accountant
4.S1:The Board should have at least three independent directors, or such number as to constitute atleast
one-third of the members of the Board, whichever is higher.
S2:The Board’s independent directors should serve for a maximum cumulative term of nine years.
(2/2 Points)

Only S1 is true

Only S2 is true

Both are true

Both are false

5.A CPA, be it his/her individual capacity, or as a partner or as a staff member in an accounting or

auditing firm, offering or rendering, or both, to more than one client on a fee basis or otherwise, services
such as the audit or verification of financial transaction and accounting records.
(1/1 Point)

Practice of Public Accountancy

Practice and Commerce and Industry

Practice in Education/Academe

Practice in the Government

6.S1: The Board’s annual self-assessment should be supported by an external facilitator every two years.
S2: The Company should have a policy requiring all directors and officers to disclose/report to the
company any dealings in the company’s shares within five business days.
(2/2 Points)

Only S1 is true

Only S2 is true

Both are true

Both are false

7.Safeguards created by the profession, legislation or regulation, include the following, except
(0/1 Point)

Educational, training and experience requirements for entry into the profession.

Continuing education requirements.

Legislation governing the independence requirements of the firm.

Policies and procedures that emphasize the assurance client’s commitment to fair financial reporting.

8.In which of the following circumstances would a CPA be bound to refrain from disclosing confidential
information obtained during a professional engagement?
(1/1 Point)

The CPA is issued a summons enforceable by a court order that orders the CPA to present confidential
information.

A major stockholder of a client company seeks accounting information from the CPA after management
declined to disclose the information.

Confidential client information is made available as part of a quality review of the CPA's practice by a
review team authorized by the BOA.

An inquiry by a disciplinary body of a state CPA society requests confidential client information.

9.The appearance of independence of a CPA, or that CPA's firm, could be impaired if the CPA
(0/1 Point)

Owns a unit in a cooperative apartment house where each unit has a vote in the cooperative, and the
CPA, who does not participate in the management, has been retained as the auditor for the cooperative.

Joins a trade association that is a client and serves in a nonmanagement capacity.

Accepts a gift from a client.

None of the above.

Option 2

10.The provision of services by a firm or network firm to an audit client that involve the design
and implementation of financial information technology systems that are used to generate
information forming part of a client's financial statements may most likely create
(1/1 Point)

Self-interest threat

Self-review threat

Intimidation threat

Familiarity threat

11.A CPA-lawyer, acting as a legal counsel to one of his audit client, is an example of
(1/1 Point)

Self-interest threat
Advocacy threat

Intimidation threat

Familiarity threat

12.In which of the following instances would the independence of the CPA not be considered to be
impaired? The CPA has been retained as the auditor of a brokerage firm
(1/1 Point)

Which owes the CPA audit fees for more than one year.

In which the CPA has a large active margin account.

In which the CPA's brother is the controller.

Which owes the CPA audit fees for services in the current year and has just filed a petition for bankruptcy

13. Which of the following is incorrect regarding confidentiality

(1/1 Point)

Professional accountants have an obligation to respect the confidentiality of information about a client’s
or employer’s affairs acquired in the course of professional services.

The duty of confidentiality ceases after the end of the relationship between the professional accountant
and the client or employer.

Confidentiality should always be observed by a professional accountant unless specific authority has
been given to disclose information or there is a legal or professional duty to disclose.

Confidentiality requires that a professional accountant acquiring information in the course of performing
professional services neither uses nor appear to use that information for personal advantage or for the
advantage of a third party.

14.A CPA should acquire

(1/1 Point)

120 CPD units within a compliance period of 3 years

100 CPD units within a compliance period of 3 years

120 CPD units within a compliance period of 2 years

100 CPD units within a compliance period of 2 years

15.Name of your MAS 4 professor (Format: Firstname, Lastname)

(0/2 Points)
Olivette, Flores
Correct answers: Olivette Flores

16.Which of the following most completely describes how independence has been defined by the
profession?
(0/1 Point)

Performing an audit from the viewpoint of the public.

Avoiding the appearance of significant interests in the affairs of an audit client.

Possessing the ability to act with integrity and objectivity.

Accepting responsibility to act professionally and in accordance with a professional code of ethics.

17.Professional accountants may encounter problems in identifying unethical behavior or in resolving an

ethical conflict. When faced with significant ethical issues, professional accountants should do the
following, except
(0/1 Point)

Follow the established policies of the employing organization to seek a resolution of such conflict.

Review the conflict problem with the immediate superior if the organization’s policies do not resolve the
ethical conflict..

If the problem is not resolved with the immediate superior and the professional accountant determines
to go to the next higher managerial level, the immediate superior need not be notified of the decision.

Seek counseling and advice on a confidential basis with an independent advisor or the applicable
professional accountancy body or regulatory body to obtain an understanding of possible courses of
action.

18. Which of the following does not constitute a practice of accountancy?

(0/1 Point)

A person holding out himself as one skilled in the science and practice of accounting and as a qualified
person to render professional services as a CPA to more than one client.

A person is appointed as a marketing director of a government owned and controlled corporation.

A person in educational institution teaching accounting, auditing, business law, taxation or other
technically related subjects.

A person representing his/her employer before government agencies on tax and other accounting
related matters

Option 2
19.A CPA is in public accounting practice when he/she:
(0/1 Point)

Holds, or is appointed to, in an accounting professional group in government or in a government-owned

and/or controlled corporation where decision making requires professional knowledge in the science of
accounting.

Represents his/her clients before government agencies on tax and other matters related to accounting.

Represents his/her employer before government agencies on tax and other matters related to
accounting.

Teaches accounting, auditing, management advisory services, accounting aspect of finance, business law,
taxation, and other technically related subjects

20.Which of the following fee arrangements is in violation of the Code of Professional Conduct?
(1/1 Point)

A fee based on whether the CPA's report on the client's financial statements results in the approval of a
bank loan.

A fee based on the outcome of a bankruptcy proceeding.

A fee based on the nature of the service rendered and the CPA's particular expertise instead of the actual
time spent on the engagement.

A fee based on the fee charged by the prior auditor.

21.S1: The board must ensure that it has either competence or expertise to be qualified for their
positions.
S2: No director should participate in discussions or remunerations involving his own remuneration.
(2/2 Points)

Only S1 is true

Only S2 is true

Both are true

Both are false

22. The Professional Regulatory Board of Accountancy has the following powers and functions under
Sec9 of the Accountancy Act, except
(1/1 Point)

To supervise the registration, licensure and practice of accountancy in the Philippines

To issue, suspend, revoke, or reinstate the Certificate of Registration for the practice of the accountancy
profession;
To prescribe and/or adopt a Code of Ethics for the practice of accountancy;

To supervise the accredited professional organization of CPAs.

23.The underlying reason for a code of professional conduct for any profession is:
(0/1 Point)

the need for public confidence in the quality of service of the profession.

that it provides a safeguard to keep unscrupulous people out.

that it is required by government legislation.

that it allows licensing agencies to have a yardstick to measure deficient behavior.

24.S1: In reporting sustainability and non-financial issues, companies should adopt locally recognized
standard/framework.
S2: The Board must send Notice of Annual and Special Shareholder’s Meeting to its’ shareholders for at
least ten days before the meeting.
(2/2 Points)

Only S1 is true

Only S2 is true

Both are true

Both are false

25.Which of the following is not in the core values of SEC?

(1/1 Point)

Integrity

Accountability

Confidentiality

Professionalism

26.Which of the following least likely create “self-interest threat”

(0/1 Point)

Undue dependence on total fees from an assurance client.

Concern about the possibility of losing the engagement.

Having a close business relationship with an assurance client.

Pressure to reduce inappropriately the extent of work performed in order to reduce fees.

27.S1: Members of the Integrated Bar of the Philippines may be allowed to teach business law and
taxation subjects.
S2: Only CPAs who are also members of the Integrated Bar of the Philippines may be allowed to teach
business law and taxation subjects.
(1/1 Point)

Only S1 is true

Only S2 is true

Both are true

Both are false

28. Shall constitute in a person involved in decision making requiring professional knowledge in the
science of accounting, or when such employment or position requires that the holder thereof must be a
certified public accountant.
(1/1 Point)

Practice of Public Accountancy

Practice and Commerce and Industry

Practice in Education/Academe

Practice in the Government

29. An Act regulating the practice of Accountancy in the Philippines is known as

(0/1 Point)

“Philippine Accountancy Act of 2004” or RA 9289

“Philippine Accountancy Act of 2004” or RA 9298

“Philippine Accountancy Act of 2008” or RA 9289

“Philippine Accountancy Act of 2008” or RA 9298

30.S1: To ensure the timely and accurate dissemination of public, material and relevant information to its
shareholders and other investors, company should include media and analysts’ briefings as channels of
communication.
S2: The Board should establish policies, programs and procedures that encourage employees to actively
participate in the realization of the company’s goals and in its governance.
(0/2 Points)
Only S1 is true

Only S2 is true

Both are true

Both are false

31. Philippine Accountancy Act shall govern, except

(1/1 Point)

The standardization and regulation of accounting education

The examination for registration and certified public accountants

The supervision, control and regulation of the practice of accountancy in the Philippines

The employment and remuneration of certified public accountants

32.Full name of the current Chairman of SEC?

(0/1 Point)
Emilio Benito Aquino

33. In order to achieve the objectives of the accountancy profession, professional accountants have to
observe a number of prerequisites or fundamental principles. The fundamental principles include the
following, except
(1/1 Point)

Objectivity

Confidence

Integrity

Professional Behavior

34.S1: The Chief Audit Executive (CAE) directly reports administratively to the CEO.
S2: The Board should ensure that basic shareholder rights are disclosed in the Manual on Corporate
Governance and on the company’s website.
(0/2 Points)

Only S1 is true

Only S2 is true

Both are true

Both are false

35.A CPA being threatened with dismissal from a client engagement is an example of
(1/1 Point)

Self-review threat

Intimidation threat

Familiarity threat

Advocacy threat

36.S1: The Corporate Secretary should be a separate individual from the Compliance Officer and should
be a member of the Board of Directors.
S2: The Corporate Governance Committee, in the performance of its duty, oversees the overall
relationship with the external auditor.
(2/2 Points)

Only S1 is true

Only S2 is true

Both are true

Both are false

37.Which of the following statements concerning the practice of accountancy in commerce and industry
is incorrect?
(1/1 Point)

A CPA is in the practice of accountancy in commerce and industry when he/she is involved in decision
making requiring professional knowledge in the science of accounting, as well as the accounting aspects
of finance and taxation.

A CPA is in the practice of accountancy in commerce and industry when he/she renders professional
services as a Certified Public Accountant to more than one client on a fee basis

A CPA is in the practice of accountancy in commerceand industry when he/she represents his/her
employer before government agencies on tax and other matters related to accounting.

A CPA is in the practice of accountancy in commerce and industry when such employment or position
requires that the holder thereof must be a Certified Public Accountant
38.A member should observe the profession’s technical and ethical standards, strive continually to
improve competence and the quality of services, and discharge professional responsibility to the best of
the member’s ability.
(0/1 Point)
Integrity

Objectivity

Professional Competence and Due Care

Professional Behavior

39.Occurs when, by virtue of a close relationship with an assurance client, its directors, officers
or employees, a firm or a member of the assurance team becomes too sympathetic to the
client’s interests.
(1/1 Point)

Self-interest threat

Advocacy threat

Intimidation threat

Familiarity threat

40.It is the global organization for the accountancy profession

(1/1 Point)

IFAC

IESBA

PRC

BOA

41.The term “objectivity” in the Code of Professional Conduct refers to a CPA’s ability to:
(0/1 Point)

choose independently between alternate accounting principles and auditing standards.

distinguish between accounting practices that are acceptable and those that are not.

be unyielding in all matters dealing with auditing procedures.

maintain an impartial attitude on matters that come under the CPA’s review.

Quiz 2 /TOPIC 3 - BUSINESS ETHICS AND CSR (BSA 2B MAS4 2NDSEM AY2020-2021)

1.The following are examples of dishonest acts of an employee toward his employer except
(1/1 Point)
Working overtime upon the instruction of his supervisor

Bringing home office supplies for personal use

Overstating business trip expenses by submitting false receipts

Doing personal errands during office hours

2. Examples of direct misrepresentation about a product include the following except

(1/1 Point)

deceptive packaging

false advertising

passive deception

misbranding

3. Highest form of honesty

(1/1 Point)

Integrity

Trustworthiness

Accountabillity

Loyalty

4. The following are Arguments against the practice of CSR, except

(0/1 Point)

Lack of Social Skills

Viability of Business

Lack of Social Accountability

Profit Maximization

5.The following are Arguments in Support of CSR, except

(1/1 Point)

Viability of Business

Long Run Self Interest

Profit from Social Problems

Profit Maximization

6. The following constitute unfair labor practices of an employer except

(0/1 Point)

to restrain employees to form a union

to violate a collective bargaining agreement

to discriminate with regards to wages and hours of work 3

to terminate employment of employees found to have violated a company policy

7.Ethics is knowing the difference between what you have the right to do and what is the right thing to
do.
(1/1 Point)

True

False

8.These are the beliefs, philosophies, and principles that drive your business. They impact the employee
experience you deliver as well as the relationship you develop with your customers, partners, and
shareholders.
(0/1 Point)
Company values
Correct answers: CORPORATE VALUES, CORE VALUES

9.Based on our discussion, Principles of Professional Ethics include the following except
(1/1 Point)

Respect for the right of others

Concern for the right of others

Confidentiality

Compliance with the law

10.A characteristic or value that can be shown by obeying just laws and exercising democratic rights
(0/1 Point)
Citizen
Correct answers: Responsible Citizenship

11.It is when the businessman is unable to provide the customer with the complete information that
the latter needs to make a fair decision.
(1/1 Point)

Passive Deception

Active Deception

Caveat emptor

Caveat venditor

12.It refers to the practice of purchasing or selling a publicly-traded company's securities while in
possession of material information that is.
(1/1 Point)
Insider trading

13. Its role is to produce higher standards of living and quality of life for the communities that surround
them and still maintain profitability for stakeholders.
(1/1 Point)

Corporate Social Responsibility

Corporate Citizenship

Corporate Philanthropy

Corporate Governance

14.It is a problem in the decision-making process between two possible options, neither of which is
absolutely acceptable from an ethical perspective.
(1/1 Point)

Ethical Issue

Ethical Problem

Ethical Dilemma

Ethical Concern

15.It is an important tool to instill an ethical corporate culture that pervades throughout the company.
(0/1 Point)

Code of Business Conduct and Ethics

Code of Business Ethics and Conduct

Code of Business Ethics and Right Conduct

Code of Corporate Governance

16.It is an interconnected field which focuses to strike a balance between business, environmental and
philanthropic practices.
(1/1 Point)

Economic Responsibility

Philanthropic Responsibility

Environmental Responsibility

Ethical Responsibility

17.A seller adds water to the bottle of Carabao's milk that he is selling is an example of
(1/1 Point)
Adulteration

18. It is the act of a corporation or business promoting the welfare of others, generally through
charitable donations of funds or time.
(1/1 Point)
Corporate philanthropy

19. Employees being responsible for the specific duties that go along with their job.
(1/1 Point)

Integrity

Honesty

Accountabillity

Loyalty

20.Specifies how an organization expect it employees to behave while on the job.

(0/1 Point)

Business conduct

Code of ethics

Rules and regulations

Relativism

21.Claiming a product to have Vitamin E but does not appear such in the Nutritional Content at the back
of its packaging is an example of which type of misrepresentation?
(0/1 Point)
False or Misleading Advertising
Correct answers: FALSE ADVERTISING, MISLEADING ADVERTISING, MISLABELING

22.This corporate philanthropy program match employee volunteer hours with donations to the chosen
nonprofit.
(0/1 Point)

Matching Gifts

Volunteer Support Initiatives

Corporate Grants

Volunteer Grants

23.It is the most used and adapted form of corporate philanthropy.

(0/1 Point)

Community Grants

Corporate Sponsorships

Matching Gifts

Charitable Giving

24.These are a set of principles that determine what is right, wrong, and appropriate in the workplace.
(1/1 Point)
Business Ethics

25.It means "Let the buyer beware"

(1/1 Point)
Caveat emptor

26.Term used for having a rule that applies to some people one way and another way to others Example
is when men are getting paid more for the same work than women.
(0/1 Point)
Gender Equality
Correct answers: DOUBLE STANDARD, DOUBLE STANDARDS

27.Based on our discussion, what company was identified as the best place chosen by employees to
work for?
(0/1 Point)
Microsoft
Correct answers: Google

28.Interlocking directorship can be committed by

(1/1 Point)
Rank and file employees

members of BOD

Top executive officers

middle-level managers

29.A type of philanthropy where some corporations will award grants to employees to donate to the
nonprofit of their choice.
(1/1 Point)
Employee Grant Stipends

30.it is also known as RA 7394

(1/1 Point)

The Food, Drug and Cosmetics Act

The Philippine Accountancy Act

The Consumer Act of the Philippines

Intellectual Property Code of the Philippines

QUIZ 3/ TOPIC 4&5 RISK MGT AND INTERNAL CONTROL (BSA 2B MAS4 2NDSEM AY2020-2021)

1.The primary responsibility for the prevention and detection of fraud and error rests with
(1/1 Point)
The auditor.

Those charged with governance.

The management of an entity.

Both b and c.

2.Temporary shutdown of the database management system of a company best falls under
(1/1 Point)

Business risk

Operational risk

Non-compliance risk

Fraud risk

3.A common risk response where the potential of an adverse outcome faced by an individual or entity
shifted to a third party.
(0/1 Point)
Risk Transfer
Correct answers: TRANSFER, share

4.A formal enterprise risk management plan contains the following elements, except
(1/1 Point)

common language or register of risks,

general risk management goals, objectives and oversight

uniform processes of assessing risks and developing strategies to manage prioritized risks

designing and implementing risk management strategies

5.Defined as an event having adverse impact on profitability and/or reputation due to several distinct
source of uncertainty.
(1/1 Point)
Risk

6.Effective internal control

(1/1 Point)

Eliminates risk and potential loss to the organization.

Cannot be circumvented by management.

Is unaffected by changing circumstances and conditions encountered by the organization.

Reduces the need for management to review exception reports on a day-to-day basis.

7.Is the crime or offense of deliberately, deceiving another in order to damage them, usually to obtain
property or services unjustly.
(1/1 Point)
Fraud

8.He is appointed by the Board and shall oversee and be responsible for the internal audit activity of the
organization, including that portion that is outsourced to a third party service provider. (abbreviation is
not allowed)
(1/1 Point)
Chief Audit Executive

9.In a small company that doesn't employ an adequate number of employees to permit proper division
of responsibilities, effective internal control can be strengthened by
(1/1 Point)

Direct participation by the owner of the business in the record keeping activities of the business.

Employment of temporary personnel to aid in the separation of duties.

Delegation of full, clear-cut responsibility to each employee for the functions assigned to each.

Engaging a CPA to perform monthly "write up" work.

10.It is a framework created by ISACA for information technology management and IT governance.
(abbreviation is not allowed)
(1/1 Point)
Control Objectives for Information and Related Technology

11.The following acts are considered fraud under asset misappropriation, except
(1/1 Point)

cash larceny

skimming

improper cookie jars

lapping
12.An act aimed at eliminating corporate disclosure and conflict of interest problems. It contains
provisions about corporate financial disclosures and the relationships among corporations, analysts,
auditors, attorneys, directors, officers, and shareholders.
(1/1 Point)

Sarbanes-Oxley Act of 2002

Sarbanes-Oxley Act of 2012

Sarbanes-Oxley Act of 2022

Sarbanes-Oxley Act of 2000

13.The following acts are considered fraud under corruption, except

(1/1 Point)

bribery

kickbacks

extortion

round tripping

14.Corporate directors, management, external auditors, and internal auditors all play important roles
in creating a proper control environment. Top management is primarily responsible for
(1/1 Point)

Establishing a proper environment and specifying overall internal control.

Reviewing the reliability and integrity of financial inform and report such information.ation and the
means used to collect

Ensuring that external and internal auditors adequately monitor the control environment.

Implementing and monitoring controls designed by the board of directors.

15.Associated with the uncertainty created by the inability to sell the investment quickly for cash.
(1/1 Point)

Credit Risk

Default Risk

Liquidity Risk

16.It is related to the probability that some or all the initial investment will not be returned.
(1/1 Point)

Credit Risk

Default Risk

Liquidity Risk
17.He is primarily responsible for overseeing compliance within an organization, and ensuring
compliance with laws, regulatory requirements, policies and procedures.
(1/1 Point)

Chief Risk Officer

Chief Executive Officer

Chief Compliance Officer

Chief Audit Executive

18.Which of the following best describe the interrelated components of internal control?
(1/1 Point)

Organizational structure, management philosophy, and planning.

Control environment, risk assessment, control activities, information and communication systems, and
monitoring.

Risk assessment, backup facilities, responsibility accounting and natural laws.

Legal environment of the firm, management philosophy, and organizational structure.

19.Transaction authorization within an organization may be either specific or general. An example of

specific transaction authorization is the
(1/1 Point)

Approval of a construction budget for a new warehouse

Setting of automatic reorder points

Establishment of a customer’s credit limits

Establishment of sales prices

20.Occurs when customers default or fail to comply with their obligation to service debt, triggering total
or partial loss.
(1/1 Point)

Credit Risk

Default Risk

Liquidity Risk
21.An entity should consider the cost of a control in relationship to the risk. Which of the following
controls best reflects this philosophy for a large peso investment in heavy machine tools?
(1/1 Point)

Conducting a weekly physical inventory.

Placing security guards at every entrance 24 hours a day.

Imprinting a controlled identification number on each tool.

Having all dispositions approved by the vice president of sales.

22.Who is the external audit firm of Enron and Worldcom during their accounting scandal?
(0/1 Point)
Arthur Andersen

23.Which of the following illustrates a perceived opportunity to commit fraud?

(1/1 Point)

Individuals are living beyond their means.

Management is under pressure, from sources outside or inside the entity, to achieve an expected (and
perhaps unrealistic) earnings target.

An individual believes internal control could be circumvented because the individual is in a position of
trust or has knowledge of specific weaknesses in the internal control system.

All of the above.

24.The role of persons entrusted with the supervision, control and direction of an entity
(1/1 Point)

Governance

Board of Directors

Government

Management

25.Mr. De Guzman borrowed money to Mr. Dela Cruz for his business operations. Few months later, Mr.
Dela Cruz learned that Mr. De Guzman's business is experiencing financial crisis. In fear of default risk,
Mr. Dela Cruz decided to insure the debt to an insurance company. This is an example of what risk
response strategy?
(0/1 Point)

Share
Mitigate

Transfer

Avoid

26.What is the usual timeframe for auditing by internal auditors?

(1/1 Point)

weekly

as requested by the management/board

annually

monthly

27.Which of the following statements is correct with respect to separation of duties?

(1/1 Point)

a. Employees should not have temporary and permanent custody of assets.

b. Employees who authorize transactions should not have custody of related assets.

c. It is permissible to allow an employee to open cash receipts and record those receipts.

d. Employees who authorize transactions should have recording responsibility for these transactions.

28.A committee of the Board that should be responsible for the oversight of a company’s Enterprise Risk
Management system to ensure its functionality and effectiveness. (abbreviation is not allowed)
(1/1 Point)
Board Risk Oversight Committee

29.Which of the following statements about internal control is correct?

(1/1 Point)

Properly maintained internal controls reasonably assure that collusion among employees cannot occur.

Establishing and maintaining internal control is the internal auditor’s responsibility.

Exceptionally strong control allows the auditor to eliminate substantive tests.

The cost-benefit relationship should be considered in designing internal control.

30.The following are risks under non-compliance except

(0/1 Point)

Reputational damage
Renewal of contracts

Dissolution of the business

Legal penalties & fines