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Course Development and Evaluation

Federal Reserve Board in institution has the ability to have:

A. Monetary policy

B. Regulatory responsibilities

C. Supervisory responsibilities

D. All of these

Correct Answer: D

Syllabus development is regulated by:

A. State Governments

B. Institutions

C. Non-Government

D. All of these

Correct Answer: B

The primary reason for syllabus regulation is that ___________.

A. Minimal requirement of course development.

B. Consumer and environmental groups are politically powerful.

C. Social benefits from such regulations always exceed the costs.

D. Social regulation is more desirable.

Correct Answer: A

The objective/s of a trust department audit is/ are to:

A. Detect and prevent irregularities such as errors

B. Access adequacy of accounting, operating, and administrative controls and procedures

C. Determine the quantity of account administration

D. all of the above

Correct Answer: D

Risks associated with compliance for syllabus development regulations may actually _________
impact ________ in ________. Choose the correct set.
A. Positively, agencies, long term

B. negatively, goals, short term

C. negatively, institutions, short term

D. None of these

Correct Answer: B

Syllabus are intended to ___________.

A. Establish set profit percentages for firms in regulated industries.

B. Prohibit firms in the same industry from engaging in joint ventures.

C. Require firms in regulated industries to share any patent rights with other firms in that industry.

D. Ensure a competitive students.

Correct Answer: D

Existing regulation of syllabus development has four domains or high-level classifications. Which is of
the following is NOT out of those domains?

A. Planning and organization

B. Acquisition and implementation

C. Delivery and support

D. Evaluation

Correct Answer: D

When developing the outline for a training event, which of the following would you place in the

A. Use Icebreaker

B. Build competence through practice exercises

C. Learners review key points

D. Bridge to next topic

Correct Answer: C

Syllabus objectives are described in three general categories:

A. Effectiveness of operations, Efficiency of strategic plans, Reliability of internal and external

B. Effectiveness of operations, Efficiency of strategic plans, Reliability of internal and external

reporting, compliance with applicable laws and regulations

C. Effectiveness and Efficiency of operations, Compliance with applicable laws and regulations,
Monitoring and management control system

D. Effectiveness and Efficiency of operations, Reliability of internal and external reporting,

Compliance with applicable regulations

Correct Answer: D

The basic purpose of most national syllabus regulation is to regulate the issue of investment
securities by ____________.

A. Providing a regulatory framework for those local governments that do not have their own
securities laws.

B. Requiring disclosure of all relevant facts so that institution can make informed decisions.

C. Prohibiting the issuance of securities that the government determines are not of investment

D. Channeling investment funds into uses that are economically most important.

Correct Answer: B

A _____ letter is usually developed with either a qualified or unqualified opinion. Obviously a
qualified opinion will warrant significant remedial action by the audit organization:

A. Opinion letter

B. Offer letter

C. Informal opinion letter

D. Formal opinion letter

Correct Answer: D

Which of the following is/are included in the specific steps for auditing short-term development?

A. Ensure that policies and procedures for short-term activities exist, are periodically reviewed for
changes, and are properly approved

B. Review to ensure that policies

C. Review the short-term activity to ensure compliance with trading policies and procedures and
applicable regulatory environment
D. All of the above

Correct Answer: D

Within the new framework, the Guidance Task Force called for the development of three sets of

A. Attribute, Performance, and Implementation Standards.

B. Attribute, Quality, and Implementation Standards.

C. Attribute, Control, and Implementation Standards.

D. Attribute, Planning, and Implementation Standards.

Correct Answer: A

Many _____________________ are conducted in accordance with established Course standards,

INTOSAI, or IFAC standards. The International Organization of Supreme Audit Institutions
______________________ promulgates standards for government organizations where as the
International Federation of Accountants _________________ provides additional guidance and

A. Institutions, (IFAC), (INTOSAI)

B. Institutionss, (INTOSAI), (IFAC)

C. (IFAC), (INTOSAI), Institutions

D. (IFAC), Institutions, (INTOSAI)

Correct Answer: B

An environmental regulatory body might control financial of development of course. One advantage
of the financial control is that _________________.

A. It will totally eliminate pollution.

B. There is greater business incentive to discover new methods of controlling course development.

C. It increases the necessity for the regulatory body to fully understand pollution control technology.

D. It increases the degree of direct government intervention in the economy.

Correct Answer: B

The purpose of the _________ is to organize the full range of internal audit guidance in a manner
that is readily accessible on a timely basis. By encompassing current internal audit practice as well as
allowing for future expansion, the _________ is intended to assist practitioners throughout the
world in being responsive to the expanding market for high quality internal audit services.




Correct Answer: C

Section _________ will detail some specific syllabus planning steps that are often utilized to ensure
that the appropriate legal and syllabus standards are applied in ___________:

A. syllabus proposals, syllabus engagements

B. syllabus engagements, II.C.2 (Planning)

C. II.C.2 (Planning), syllabus engagements

D. syllabus engagements, syllabus proposals

Correct Answer: C

An internal audit activity had been requested to perform an engagement to determine whether the
organization is in compliance with a particular set of syllabus regulations. The engagement did not
reveal any issues of noncompliance but did reveal that the organization did not have an established
system to ensure compliance with the applicable syllabus regulations. The internal auditors
responsibility is to

I. Report that no significant compliance issues were noted.

II. Report that the organization has a significant control deficiency because management has not
established a system to ensure compliance.

III. Meet with management to determine what follow-up action will be taken.

IV. Monitor to determine that follow-up action has been taken.

A. I only.

B. I and II only.

C. II and III only.

D. I, II, III, and IV.

Correct Answer: D

A U.S. institution and a European institution developed of new course. If the quality of the European
weakened against the U.S. during the period, in comparison with the European institutions
outcome, the U.S. companys outcome will be _______________.

A. Lower.

B. Higher.
C. The same.

D. Indeterminate from the information provided.

Correct Answer: A

Which denominator used in the return on investment (ROI) formula is criticized because it combines
the effects of course development decisions made at one organizational level with financing
decisions made at another organizational level?

A. Total assets employed.

B. Equity.

C. Working capital plus other assets.

D. Total assets available.

Correct Answer: B

A domestic institution purchased the license syllabus development for 1 year. Comparing the
returns of the two companies, what will be the domestic companys return?

A. Lower.

B. Higher.

C. The same.

D. Higher in the short-run but lower in the long-run.

Correct Answer: A

Selectively increasing the price of a cost of education may have the effect of discriminating against
those student. This practice left undetected and not properly controlled may raise the possibility of:

A. Reputation risk

B. Price risk

C. litigation or regulatory action (compliance Risk)

D. Strategic Risk

Correct Answer: C

Which of the following classes of securities are listed in order from lowest risk/opportunity for
return to highest risk/opportunity for return?

A. Corporate first mortgage bonds; corporate income bonds; preference (preferred) shares.

B. Corporate income bonds; corporate mortgage bonds; subordinated debentures.

C. Ordinary (common) shares; corporate first mortgage bonds; corporate second mortgage bonds.

D. Preference (preferred) shares; ordinary (common) shares; corporate debentures.

Correct Answer: A

During an engagement to review the December 31, Year 2, accounts payable balance of a division,
the internal auditor has received from the division controllers office a schedule listing the creator of
syllabus at December 31, Year 2. Which of the following engagement procedures best determines
that no individual account payable has been omitted from the schedule?

A. Send confirmation requests to a randomly selected sample of creditors listed on the schedule.

B. Send confirmation requests to creditors listed on the schedule that were not listed on the
corresponding December 31, Year 1, schedule.

C. Examine support for selected January Year 3 payments to creditors, ascertaining that those
relating to Year 3 are not on the schedule.

D. Examine support for selected January Year 3 payments to creditors, ascertaining that those
relating to Year 2 are on the schedule.

Correct Answer: D

A working capital technique that increases the payable float and therefore delays the outflow of
cash is ______________.

A. Concentration banking.

B. A draft.

C. Electronic Data Interchange (EDI).

D. A lockbox system.

Correct Answer: B

For the past several years, M.F.S. Company has invested in the common stock of Annabelle
Company. M.F.S. currently owns approximately 13% of the total of Annabelles outstanding voting
common stock. Recently, managements of the two companies have discussed a possible
combination of the two entities. If they do decide to combine, the resulting combination should be
accounted for as a __________.

A. Uniting of interests.

B. Purchase.

C. Part purchase, part uniting of interests.

D. Joint venture.
Correct Answer: B

In engagement planning, internal auditors should review all relevant information. Which of the
following sources of information would most likely help identify suspected violations of
environmental regulations?

A. Discussions with operating executives.

B. Review of trade publications.

C. Review of correspondence the entity has conducted with governmental agencies.

D. Discussions conducted with the external auditors in coordinating engagement efforts.

Correct Answer: C

The audit committee of an organization has charged the chief audit executive (CAE) with upgrading
the internal audit activity. The CAEs first task is to develop a charter. What item should be included
in the statement of objectives?

A. Report all engagement results to the audit committee every quarter.

B. Notify governmental regulatory agencies of unethical business practices by organization


C. Evaluate the adequacy and effectiveness of the organizations controls.

D. Submit budget variance reports to management every month.

Correct Answer: C

Upon reviewing the final communication of engagement results, senior management decided to
assume the risk of not implementing corrective action on certain engagement observations. Evaluate
the following and select the best alternative for the chief audit executive:

A. Notify regulatory authorities of managements decision.

B. Perform additional engagement procedures to further identify the policy violations.

C. Conduct a follow-up engagement to determine whether corrective action was taken.

D. Discuss the matter with senior management and possibly the board if the residual risk accepted is

Correct Answer: D

Which of the following is most likely to be an element of an effective syllabus compliance program?

A. The internal audit activity should be assigned overall responsibility for overseeing the program.

B. The program is communicated to employees in a video format on a one-time basis.

C. The organization should use auditing systems reasonably designed to detect error.
D. The organization should obtain as much information as possible when performing background
checks on employees.

Correct Answer: C

Financial institutions regularly identify uncollectible and charge them off against the reserve for loan
losses. Auditors should ensure that the institution has developed adequate criteria forcharge- offs
and select a sample of charged-off loans whether they are handled properly.

Another useful test is:

A. To select a sample of loans that are significantly paid inorder to determine whether they meet the
charge-off criteria and assess why they have not been charged off

B. To select a sample of loans that are significantly paid in order to determine whether theymeet the
past criteria and assess why they have not been charged off

C. To select a sample of loans that are significantly paid in order to determine whether theymeet the
charge-off criteria and assess why they have not been charged off

D. To select a sample of loans that are significantly paid in order to determine whether theymeet the
charge-off criteria to meet the current requirements

Correct Answer: A

Auditor independence provisions along with listing standards of national syllabus development and
auditing best practices are designed to supply which of the following benefits to corporate

A. Reduce potential conflicts of interest between auditors and their clients management.

B. Replace self-regulation and peer reviews.

C. Limit the type of nonaudit services public accounting firms can perform.

D. None of the above.

Correct Answer: A

General liability insurance covers the major liability exposure of a business, including lawsuits
against an organization's facilities or products. General liability insurance does not cover:

A. Liabilities that a business incurs through the use of its automobiles

B. Liabilities that a business incurs through the use of its labor and machinery

C. Liabilities that a business incurs through the use of its land and other capital products

D. All of these

Correct Answer: A
Under the laws and regulations of countries in the OECD (Organization for Economic Cooperations
and Development), knowledge of certain illegal or unethical acts requires public servants to notify an
appropriate official. Which of the following are not such acts?

A. Acts that affect the environment.

B. Acts that endanger the health, safety, or well-being of individuals.

C. Acts that are considered miscarriages of justice.

D. Criminal offenses and other failures to comply with legal obligations.

Correct Answer: A

Through an engagement performed at the lab of electrical department, the chief audit executive
(CAE) became aware of a material misstatement of the year-end accounts receivable balance. The
external auditors have completed their engagement without detecting the misstatement. What
should the CAE do in this situation?

A. Inform the external auditors of the misstatement.

B. Report the misstatement to management when the external auditors present a report.

C. Exclude the misstatement from the final engagement communication because the external
auditors are responsible for expressing an opinion on the financial statements.

D. Perform additional engagement procedures on accounts receivable balances to benefit the

external auditors.

Correct Answer: A