1.
According to The IIA Glossary appended to the Standards, which of the following are most directly designed to ensure that risks are contained?
A.
Control processes.
B.
Internal audit activities.
C.
Governance processes.
D.
Risk management processes.
2.
An internal auditor is examining inventory control in a merchandising division with annual sales of US $3,000,000 and a 40% gross profit rate. Tests show that 2% of the monetary amount of purchases do not reach inventory because of breakage and employee theft. Adding certain controls costing US $35,000 annually could reduce these losses to .5% of purchases. Should the controls be recommended?
A.No, because the cost of the added controls exceeds the projected savings.
B.Yes, because the projected saving exceeds the cost of the added controls.
C.Yes, regardless of cost-benefit considerations, because the situation involves employee theft. D.Yes, because the ideal system of internal control is the most extensive one.
3.
The manager of a production line has the authority to order and receive replacement parts for all machinery that requires periodic maintenance. The internal auditor received an anonymous tip that the manager ordered substantially more parts than were necessary from a family member in the parts supply business. The unneeded parts were never delivered. Instead, the manager processed receiving documents and charged the parts to machinery maintenance accounts. The payments for the undelivered parts were sent to the supplier, and the money was divided between the manager and the family member. Which of the following internal controls would have most likely prevented this fraud from occurring?
A.
Using the company’s inventory system to match quantities requested with quantities received.
B.
Establishing predefined spending levels for all vendors during the bidding process.
C.
Comparing the bill of lading for replacement parts to the approved purchase order.
D.
Segregating the receiving function from the authorization of parts purchases.
4.
The requirement that purchases be made from suppliers on an approved vendor list is an example of a
A.
Monitoring control.
B.
Detective control.
C.
Corrective control.
D.
Preventive control.
5.
The risks created by rapid changes in IT have not affected which concepts of internal control?
1. Cost-benefit analysis
2. Control environment
3. Reasonable assurance
4. Management’s responsibility
A.
1 and 2 only.
B.
3 and 4 only.
C.
2, 3, and 4 only.
D.
1, 2, 3, and 4.
6.
Which of the following should the auditor recommend as the most economical point at which to correct input errors in an online system?
A.
Output data are balanced with computer-produced control totals and delivered to the user.
B.
Entry of data into each field of a record is completed.
C.
Entry of data into each record is completed.
D.
Input data are balanced with computer-produced control totals.
7.
Management is concerned with the potential for unauthorized ...
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1.According to The IIA Glossary appended to the Standards, which.docx
1. 1.
According to The IIA Glossary appended to the Standards,
which of the following are most directly designed to ensure that
risks are contained?
A.
Control processes.
B.
Internal audit activities.
C.
Governance processes.
D.
Risk management processes.
2.
An internal auditor is examining inventory control in a
merchandising division with annual sales of US $3,000,000 and
a 40% gross profit rate. Tests show that 2% of the monetary
amount of purchases do not reach inventory because of breakage
and employee theft. Adding certain controls costing US $35,000
annually could reduce these losses to .5% of purchases. Should
the controls be recommended?
A.No, because the cost of the added controls exceeds the
projected savings.
B.Yes, because the projected saving exceeds the cost of the
added controls.
C.Yes, regardless of cost-benefit considerations, because the
situation involves employee theft. D.Yes, because the ideal
system of internal control is the most extensive one.
3.
The manager of a production line has the authority to order and
receive replacement parts for all machinery that requires
periodic maintenance. The internal auditor received an
anonymous tip that the manager ordered substantially more
parts than were necessary from a family member in the parts
2. supply business. The unneeded parts were never delivered.
Instead, the manager processed receiving documents and
charged the parts to machinery maintenance accounts. The
payments for the undelivered parts were sent to the supplier,
and the money was divided between the manager and the family
member. Which of the following internal controls would have
most likely prevented this fraud from occurring?
A.
Using the company’s inventory system to match quantities
requested with quantities received.
B.
Establishing predefined spending levels for all vendors during
the bidding process.
C.
Comparing the bill of lading for replacement parts to the
approved purchase order.
D.
Segregating the receiving function from the authorization of
parts purchases.
4.
The requirement that purchases be made from suppliers on an
approved vendor list is an example of a
A.
Monitoring control.
B.
Detective control.
C.
Corrective control.
D.
Preventive control.
5.
The risks created by rapid changes in IT have not affected
which concepts of internal control?
1. Cost-benefit analysis
3. 2. Control environment
3. Reasonable assurance
4. Management’s responsibility
A.
1 and 2 only.
B.
3 and 4 only.
C.
2, 3, and 4 only.
D.
1, 2, 3, and 4.
6.
Which of the following should the auditor recommend as the
most economical point at which to correct input errors in an
online system?
A.
Output data are balanced with computer-produced control totals
and delivered to the user.
B.
Entry of data into each field of a record is completed.
C.
Entry of data into each record is completed.
D.
Input data are balanced with computer-produced control totals.
7.
Management is concerned with the potential for unauthorized
changes in the payroll. Which of the following is the proper
organizational structure to prevent such unauthorized
changes? A.The personnel department authorizes the hiring and
pay levels of all employees. B.The payroll department maintains
and authorizes all changes in the personnel records. C.The
payroll department is supervised by the management of the
human resources division. D.The payroll department’s functions
are limited to maintaining the payroll records, distributing
4. paychecks, and posting the payroll entries to the general ledger.
8.
Internal auditors regularly evaluate controls. Which of the
following best describes the concept of control as recognized by
internal auditors?
A.
Control procedures should be designed from the “bottom up” to
ensure attention to detail.
B.
Management regularly discharges personnel who do not perform
up to expectations.
C.
Management takes action to enhance the likelihood that
established goals and objectives will be achieved.
D.
Control represents specific procedures that accountants and
internal auditors design to ensure the correctness of processing.
9.
An organization has grown rapidly and has just automated its
human resource system. The organization has developed a large
database that tracks employees, employee benefits, payroll
deductions, job classifications, ethnic code, age, insurance,
medical protection, and other similar information. Management
has asked the internal audit activity to review the new system.
Human resources and payroll are separate departments. Which
of the following combinations provides the best segregation of
duties?
A.
Human resources adds employees, payroll processes hours, and
human resources delivers the paychecks to employees.
B.
Human resources adds employees, and payroll processes hours
and enters employee bank account numbers. Paychecks are
automatically deposited in the employee’s bank account.
5. C.
Payroll adds employees and enters employees’ bank account
numbers but processes hours only as approved by human
resources. Paychecks are automatically deposited in the
employee’s bank account.
D.
Human resources adds employees, reviews and submits payroll
hours to payroll for processing, and delivers paychecks to
employees.
10
An adequate system of internal controls is most likely to detect
a fraud perpetrated by a
A.
Group of employees in collusion.
B.
Single employee.
C.
Single manager.
D.
Group of managers in collusion.
11.
Which of the following situations will cause an internal auditor
to question the adequacy of controls over a purchasing
function?
A.
Receiving reports are forwarded to purchasing where they are
matched with purchase orders and sent to accounts payable.
B.
Unpaid voucher files and perpetual inventory records are
independently maintained.
C.
The original and one copy of the purchase order are mailed to
the vendor. The copy on which the vendor acknowledges
6. acceptance is returned to the purchasing department.
D.
The accounts payable section prepares documentation for
payments.
12.
The actions taken to manage risk and increase the likelihood
that established objectives and goals will be achieved are best
described as
A.
Supervision.
B.
Compliance.
C.
Control.
D.
Quality assurance.
13.
Of the following, which is the most efficient source for an
auditor to use to evaluate a company’s overall control system?
A.
Control flowcharts.
B.
Copies of industry operating standards.
C.
Copies of standard operating procedures.
D.
A narrative describing departmental history, activities, and
forms usage.
14.
An internal auditor develops a flowchart primarily to
A.
Analyze a system and identify internal controls.
B.
7. Detect errors and irregularities.
C.
Reduce the need for interviewing auditee personnel.
D.
Determine functional responsibilities.
15.
Omen Company is a manufacturer of men’s shirts. It distributes
weekly sales reports to each sales manager. The quantity 2R5
appeared in the quantity sold column for one of the items on the
weekly sales report for one of the sales managers. The most
likely explanation for what has occurred is that the
A.
Computer has malfunctioned during execution.
B.
Output quantity has been stated in hexadecimal numbers.
C.
Program did not contain a data checking routine for input data.
D.
Printer has malfunctioned and the “R” should have been a
decimal point.
Rose discussion:
In order for counselors to effectively assist clients who are of a
different cultural or religious background then their own, it is
required that they become multiculturally competent. In
highlighting the importance of being multiculturally competent,
Hays and Erford (2014) explained that shifts in demographics,
and an increased diversity in the counseling profession lead to
the thought that multicultural competence was a necessary
precursor to general competence for counselors (Hays & Erford,
2014, p. 21). This resulted in an increased focus on
multicultural issues in general and multicultural competencies
more specifically in counselor training, research, and practice
8. (Hays & Erford, 2014, p. 21).
Response
According to Hays and Erford (2014) a culturally
competent counselor is defined as one who has self-awareness
of values and biases, understands client worldviews, and
intervenes in a culturally appropriate manner (Hays & Erford,
2014, p. 21). The authors added that these standards were
developed to primarily address racial and ethnic factors, the
intersection with other cultural identities, such as gender,
sexual orientation, socioeconomic status, and spirituality, is
increasingly being addressed (Hays & Erford, 2014, p. 21).
Hays and Erford (2014) explained that there are three
overarching multicultural counseling competence (MCC)
dimensions with corresponding competencies, objectives related
to counselor attitudes and beliefs, knowledge, and skills.
According to the authors, they are as follows:
I. Counselor Awareness of Own Cultural Values and Biases
Attitudes and Beliefs: Counselors are aware of themselves and
their clients as cultural beings and appreciate these cultural
differences. They also understand how their cultural
backgrounds affect the counseling process (Hays & Erford,
2014, p. 22).
II. Counselor Awareness of Client’s Worldview Attitudes and
Beliefs: Counselors are aware of how stereotypes and other
negative reactions they hold about minority clients affect the
counseling relationship, process, and outcome (Hays & Erford,
2014, p. 22).
III. Culturally Appropriate Intervention Strategies Attitudes and
Beliefs: Counselors identify and respect community-specific
values (e.g., spiritual beliefs), and actively integrate them into
counseling interventions. Skills: Counselors engage in both
verbal and nonverbal helping responses that are congruent with
the helping style of their clients. During helping, counselors
understand and articulate expectations and limitations of
counseling assessments and interventions (e.g., language match,
9. spiritual leadership) (Hays & Erford, 2014, p. 22).
Biblical World View
There are several Scriptures that emphasize the
importance of seeking effective counsel. The bible verse I
chose, discusses the impact of good counsel and is found in the
Proverbs 12 verse 15, which reads, “The way of a fool is right
in his own eyes, But he who heeds counselis wise” (Proverbs
12:15, NKJV).
The verse mentioned above I believe, highlights the
significance of effective counseling. A counselor is not using
their Christian faith effectively if they challenge the religious
beliefs or moral values of clients. In the article
titled Interventions that apply Scripture in
psychotherapy, Garzon (2005) discussed a multitude of ways in
which counselors can use Scripture that are not overtly
religious. However, he added, that counselors have to respect
for the client’s autonomy, they also have to mindful of the
client’s religious and spiritual beliefs, and lastly, they must be
flexible and responsive to the client’s religious and spiritual
beliefs (Garzon, 2005, p. 115).
References
Hays, D. G., & Erford, B. T. (2014). Developing multicultural
counseling competence: A systems approach (2nd ed.). Upper
Saddle River, NJ: Pearson.
Garzon, F. (2005). Interventions that apply Scripture in
psychotherapy. Journal of sychology and Theology, 33(2), 113-
121.
Patrice discussion:
According to (Hays & Erford 2014 p.20), “there are four
reasons offered in the Culture and Counseling Process section
for why diverse clients tend to terminate or avoid counseling
services (Hays & Erford 2014 p.20).” The first reason would be
10. that the values of counseling may not be congruent with the
values of various cultural groups. This reason, for example,
means that counseling values mirror dominant U.S. values of
individualism and autonomy, minimizing the historical and
family values in other cultures. The second reason would be
that culturally diverse clients may perceive counseling to be a
stigmatizing process because some cultures may view mental
illness as something to be discussed only within a specific
community. This reason, for example, means that many cultural
groups rely on family members, community leaders, and
spiritual leaders to provide them with help and the necessary
resources to assist them in these matters. The third reason
would be that culturally diverse clients are often mistrustful of
counselors, who tend to be predominantly White, because of
historical racist, sexist, classist, and heterosexual undertones in
counseling. This reason, for example, means that counselors
may overdiagnose, underdiagnose, or misdiagnose culturally
diverse clients’ problems because of prejudice. The fourth
reason would be that mental health services ten to be
inaccessible to culturally diverse clients. This reason, for
example, means that counseling may be unavailable for non-
English speaking clients. There is also a lack of mental health
care services for people of color and lower socioeconomic
status.
In order for counselors to mitigate these factors and
encourage these individuals to trust the counseling process, they
should be self-aware, multiculturally competent, and understand
how various forms of oppression influence counseling.
Counselors should also examine their beliefs and attitudes
regarding other cultures, and employ culturally appropriate
assessments and interventions. There are several ways to get
clients to become trustworthy of the counseling process. One
way would be to become multiculturally competent by meeting
clients where they are and knocking down barriers created by
their own cultural biases. Another way for counselors, would
be to being committed to being proactive in consulting with
11. others when a process of counseling becomes unfamiliar.
Counselors have the opportunity to evolve in various
populations and help diverse clients, but they must be willing to
respect diverse clients and facilitate the skills necessary to
working with diverse clients in a positive manner. A scripture
from Galatians 3:28 (English Standard Version) states, “There
is neither Jew nor Greek, there is neither slave nor free, there is
no male and female, for you are all one in Christ Jesus
Galatians 3:28 (ESV).” Counselors are to be mindful of various
demographics and be respectful for clients to entrust them.
Reference
Hays, D. G., & Erford, B. T. (2014). Developing multicultural
counseling competence: A systems approach (2nd Ed.). Upper
Saddle River, NJ: Pearson.