Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

(2 marks)
205 
Consider the following two statements: 
(1) Responsibility for the internal controls is shared between management and the 
internal auditors. 
(2) 
The internal auditor’s role often includes helping to set corporate objectives and the 
design and monitoring of performance measures. 
Which of these options is/are correct? 
A (1) 
only 
B (2) 
only 
C Both 
D Neither 
(2 marks)
206 Which of the following statements are correct with regards to external audit? 
(i) 
Due to their in-depth examination of the business, external auditors are often able to 
provide advice to management on possible improvements to the business. 
(ii) External auditors often have an independence problem as they report to 
management and yet are also expected to give an objective opinion on them. 
(iii) External audits can help to resolve management disputes, such as disagreements 
over company valuations or profit-sharing agreements. 
(iv) 
External auditors have little or no interest in the internal controls of the organisation 
as these are the responsibility of the internal auditors. 
A 
(i) and (iii) 
B 
(i), (ii) and (iv) 
C 
(i), (iii) and (iv) 
D 
(ii) and (iv) 
(2 marks) 
207 Every evening the last person leaving the office premises needs to switch on the security 
alarm. This control belongs to which of the following categories? 
A Authorisation 
B Computer 
C Reconciliation 
D Physical
(2 marks) 
 
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PRA CTICE OBJE CTIVE TEST QUESTIONS : 
SECTION 1 
K APLA N PUBLISH ING 
47