This section comprises TWENTY (20) multiple-choice questions.  You need to choose the ONE (1) alternative that BEST completes the statement or answers the question. Each question is worth 1 mark. Attempt ALL questions.

Answers to these questions MUST be given on the multiple-choice answer sheet. Make sure you write your Student ID Number at the top of the multiple-choice answer sheet.

Question A1.

Risk assessment is:

A. The process of scanning the organisation for risks that could inhibit attainment of the organisation's goals.

B. The process of scanning the organisation and its environment for risks that could inhibit

attainment of the organisation's goals.

C. The process of scanning the organisation for risks that could inhibit attainment of the organisation's goals and devising appropriate corrections.

D. The process of scanning the organisation and its environment for risks that could inhibit attainment of the organisation's goals and devising appropriate corrections.

Question A2.

As a result of an inadequate design, a production process yields an abnormally high amount of raw material not utilised appropriately in the production process. Which control goal is being violated?

A. Ensure effectiveness of operations.

B. Ensure efficient employment of resources.

C. Ensure security of resources.

D. Ensure input accuracy.

Question A3.

Why are companies commonly advised NOT to store customer credit card details on the company computers / websites?

A. There is a significant legal risk if, as a result of negligence, the details are stolen by third parties.

B. There is a risk that the customer may enter incorrect details and the business cannot detect this error.

C. The customer should process all credit data in conjunction with their own bank.

D. The customer may not have been verified as a legitimate customer.

Question A4.

The remittance advice is:

A. A document sent to a customer advising them how much they owe on a purchase

B. A document sent to a customer confirming the amount of money that has been received

C. A document detailing the amount of the purchases made by a customer

D. A document sent to a customer and returned to the organisation together with the customer’s

payment.

Question A5.

Which of the following costs CANNOT be reasonably quantified?

A. Nonrecurring cost

B. Recurring cost

C. Tangible cost

D. Intangible cost

Question A6.

Which of the frauds listed below can occur if an employee is responsible for both approving and paying invoices?

A. Paying non-existent suppliers

B. Inventory theft

C. Credit fraud

D. All of the above.

Question A7.

The information system control goal which relates to preventing fictitious events from being recorded is termed

A. Ensure input validity

B. Ensure input accuracy

C. Ensure input completeness

D. Ensure effectiveness of operations.

Question A8.

A production optimization problem has 4 decision variables and resource b1 limits how many of the 4 products can be produced. Which of the following constraints reflects this fact?

A. f(X1, X2, X3, X4) ≤ b1

B. f(X1, X2, X3, X4) ≥b1

C. f(X1, X2, X3, X4) = b1

D. f(X1, X2, X3, X4) ≠ b1.

Question A9.

A diet is being developed which must contain at least 100 mg of vitamin C. Two fruits are used in   this diet. Bananas contain 30 mg of Vitamin C and Apples contain 20 mg ofvitamin C. Which of the following constraints reflects the relationship between Apples, Bananas and Vitamin C?

A.  20 A + 30 B ≥ 100

B.  20 A + 30 B ≤ 100

C.  20 A + 30 B = 100

D.  20 A = 100

Question A10.

The VLOOKUP function compares a lookup value to the first column of a lookup table, and returns the corresponding value in ____ column of the lookup table.

A. A designated

B. The first

C. The second

D. The last.

Question A11.

A summation of customer account numbers taken from a batch of sales invoices would be classified as a _____________

A. Record count

B. Line count

C. Dollar total

D. Hash total

Question A12.

Cell D4 contains the formula =B$4 * $C4. If the contents of cell D4 is MOVED to E4, what formula will be stored in cell E4?

A. = B$4 * $C4

B. = C$4 * $C4

C. = C$4 * $D4

D. = B$4 * $D4

Question A13.

If the function =IF((A5 + B7) > 0,“We are the best!”,“We are nearly the best!”) evaluates to “We are the best!”, which of the following statements must be TRUE?

(i) The value in cell A5 is greater than zero.

(ii) The combined value of cells A5 and B7 is greater than zero.

(iii) The value in cell B7 may be less than zero.

(iv) The combined value of cells A5 and B7 is less than zero.

A.  (i) and (ii) only.

B.  (ii) and (iii) only.

C.  (iii) and (iv) only.

D.  (i), (ii) and (iii) only.

Question A14.

The control environment is a component of a company's internal control system that:

A. Influences the control awareness of a company's employees

B. Stresses the development of control procedures in a company

C. Directly affects the accuracy and reliability of a company’s accounting data

D. Can be ignored when establishing a company's internal control system

Question A15.

The preventive controls within a company’s internal control system:

A. Form the foundation for all of a company's other internal control components

B. Focus on management’s philosophy and operating style

C. Ignore the risk factor associated with a company's control procedures

D. Are controls put by the management to prevent problems from occurring

Question A16.

Assume that a company designs and implements a control procedure whereby the accountant who is responsible for recording cash receipts transactions does not have access to the cash itself. This  control procedure is an example of a:

A. Detective control

B. Preventive control

C. Corrective control

D. Feedback control.

Question A17.

A control procedure that may be established within the sales department of a company's marketing subsystem  is  the  addition  of  the  sales  invoice  amounts  before  these  invoices  are  sent  to  the information processing subsystem. This control total of invoice amounts is called a:

A. Checksum

B. Random total check

C. Redundant control amount

D. Batch control total.

Question A18.

Regarding the cost-benefit concept, which of the following statements is true?

A. Every control procedure that offers benefits to a company should be implemented into the company's system

B. An optimal internal control package is developed for a company's system by implementing a standardized package of control procedures

C. A control procedure is considered cost effective if it can be determined that the cost of operating the procedure will be lower in the current period than in the previous period

D. A control procedure is considered cost effective when its anticipated benefits exceed its

anticipated costs

Question A19.

The purpose of ________________ is to identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and install those controls whose projected benefits outweigh    their costs.

A. Internal controls

B. A control environment

C. Risk assessment

D. Management consultants