B1 - 30 Cumulative MCQs (Set 1)

Question 1

What are corrective controls?

Answer 1

Controls that allow the user to recover from a problem once it has been identified

Question 2

What are preventive controls?

Answer 2

Controls that are designed to stop errors and irregularities from occurring.

Question 3

What is a compensating control?

Answer 3

A control that accomplishes the same objective as another control.

Question 4

According to the 17 COSO control principles, establishing a whistle-blower hot line contributes to:

Answer 4

Both internal and external organization communication.

Question 5

According to the 17 COSO control principles, fraud primarily relates to which fundamental component of internal control?

Answer 5

Risk Assessment. This primarily relates to organizational objectives, risk assessment, fraud, and change management.

Question 6

The system of internal control begins with:

Answer 6

Setting organizational objectives. This is the starting point.