CPE quiz: June

Internal Auditor, August, 2003

June

The CPE Quiz is a convenient and cost-effective way to earn three continuing professional education (CPE) hours by reading Internal Auditor articles and answering conceptual questions about issues or procedures included in them.

To answer the following questions, please refer to the articles in the JUNE 2003 issue of Internal Auditor. This quiz expires June 30, 2005. Current quizzes--including the one for this issue--and an answer sheet can be found by visiting The IIA's Web site at www.theiia.org and clicking "Publications," "Bookstore," and "CPE Quiz."

1. Which was not mentioned in "Creating a Culture of Security" as one of the nine principles an auditor should search for in a review of the actions of top management and the board of directors?

A. Ethics.

B. Security management.

C. Technology knowledge.

D. Democracy.

2. Walter O. Baggett's article tells us that the fact that people know internal auditing will be reviewing feedback documents presented to the board by management helps by:

A. Allowing ample time for corrections to be made.

B. Preventing errors from occurring prior to the review.

C. Preventing errors from occurring after the review.

D. Preventing lapses in adherence to values, policies, and procedures.

3. According to "A Profession in Demand," having knowledge of this can make an auditor marketable:

A. The current conditions of the tight job market.

B. The risks, benefits, and practical issues surrounding the latest technologies.

C. Internal audit certification programs.

D. The starting salary range.

4. In Dennis Blank's article, "Reasoned and Reasonable," David Walker indicates that, for many years, people feared the GAO. What does he say he believes now?

A. That people still fear the GAO.

B. That people fear the GAO even more than they used to.

C. That clients are still guarded.

D. That people respect the GAO and clients are not as guarded as they used to be.

5. Lynn Koller's article tells us that the complexity of Sarbanes-Oxley makes it--for organizations to assimilate.

A. Very easy.

B. Dangerous.

C. Challenging.

D. A good idea.

6. "Make Your Data Pay" lists five data sorts that can reveal different inefficiencies. Which one of the following sorts was not mentioned in the article?

A. By ascending dollar amount.

B. By check date.

C. By invoice number, if available.

D. By ascending check number.

7. What simple theory regarding the naturally occurring frequency of numbers does Natalie Fennel suggest be applied for further evaluation of check register data?

A. The Unusual Payment Theory.

B. The Law of Large Numbers.

C. Benford's Law.

D. Large/Small Payment Amount Theory.

8. According to "Sticking to Their Principles," management has always been responsible for internal controls, but what else is now required?

A. They have to prove their work.

B. They have to report on their assessment of internal control effectiveness.

C. They have to bypass rigorous audit testing.

D. Strict adherence only to the Higgs report.

9. "Bringing ERM Into Focus," notes that the COSO ERM framework does not claim that risk is:

A. Widespread.

B. Easily identifiable.

C. Always associated with specific controls.

D. Both positive and negative.

10. Christy Chapman's article mentions that, according to the COSO framework, ERM can be judged effective when how many of its components are present and well functioning?

A. At least four.

B. All eight.

C. All six.

D. At least six.

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JUNE 2003 QUIZ

Expires June 2005

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