CPE QUIZ DECEMBER 2003
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 questions about issues or procedures included in them.
To answer the following questions, please refer to the articles in the DECEMBER 2003 issue of Internal Auditor. Current
quizzes — including the one for this issue — can be taken online by visiting The IIA’s Web site at www.theiia.org and
clicking “Publications,” “Bookstore,” and “CPE Quiz.” Save $5 and get instant results online.
1. John Silltow’s article explains that being connected to any form of
network exposes the organization to risk from __________.
A. Increasingly common attacks from within the organization.
B. The weakest link in that network.
C. Possible threat that could have been avoided with proper
D. Invalid data being accessed.
2. “Shedding Light on Information Technology” points out several
potential threats to IT assets. In particular, which of the following
was identified as a growing threat?
A. Keyboard errors.
B. Most hardware.
C. MP3 files.
3. According to “Training the Audit Committee,” there is public
pressure for boards to keep up with __________.
A. Business as usual.
B. Several unspecified areas of concern.
C. Other boards.
D. Their training.
4. Which of the following is not one of the five areas of concern
listed by Norman Marks?
A. Understanding and assessing the business.
B. Understanding what is “material” to financial statements.
C. Recognizing risk.
D. Risk management and internal controls.
5. As stated in “The Critical Role of Ethics,” what happens to
companies long before suffering financial demise?
A. They experience an unusually high turnover rate.
B. Key members of the management team become overconfident.
C. They collapse ethically.
D. They begin rationalizing their actions.
6. Which of the following was not listed by Marianne M. Jennings as
one of the eight critical steps companies can take to help ensure
against corporate ethical collapse?
A. Consolidating, clarifying, and reporting financial results.
B. Putting parameters around goal achievement.
C. Recognizing the basics of finance and economics.
D. Examining the intent of all decisions.
7. In “One Right Path,” Cynthia Cooper indicated that:
A. There was only one right path to take, and she would take it again.
B. She knew everything would work out for the best, and she would
take the same steps again.
C. It was difficult to cross the line and become a whistleblower, and
she is not sure she would do it again.
D. It was easy to cross the line and become a whistleblower, and she
would do it all over again.
8. According to “Fighting Financial Reporting Fraud,” which one of
the following measures can auditors take to identify aggressive
accounting and contingencies?
A. Avoid inquiries to management regarding the existence of loans
B. Stop looking for patterns and focus activities where they will be
C. Conduct a detailed analysis of debt obligations.
D. Remain passive.
9. Scott Green states that auditors need to review plan assumptions and should challenge expected returns in excess of ________.
A. 4 percent.
B. 5. 5 percent.
C. 7. 25 percent.
D. 8 percent.
10. International assignments can be hugely rewarding for both the
individual auditor and his or her organization, according to David
O’Regan. He tells us that the risks of travel _________.
A. Should prompt caution and perhaps avoidance.
B. Should prompt caution, not avoidance.
C. Are very limited as long as you aim to be anonymous in a crowd.
D. Are minimal, provided you research the dress code.
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DECEMBER 2003 Quiz
Expires December 2005
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INTERNAL AUDITOR FEBRUARY 2004