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NEW QUESTION 52
A government department is conducting a value for money audit on a school.
The school's pupils sit leaving exams. Classify each of the audit tests as either economy and efficiency or effectiveness.

Answer:

Explanation:

NEW QUESTION 53
Company N is considering opening another production plant in Northland, a country 2000 km from its current production plant location N would also sell its products in Northland Which TWO of the following are business risks'

• A. The risk that Northland may not be able to support N's technology requirements.
• B. The risk that Northland's government may introduce policies that would be unfavorable to N.
• C. The risk that the Northland currency may strengthen making it expensive.
• D. The risk that it may be difficult to sell its products in Northland.
• E. The risk that interest rates may rise making N's loans expensive.

Answer: A,D

NEW QUESTION 54
You are in process of compiling a risk register for P, a company which maintains railway tracks. This helps prevent accidents and ensures the trains are not disrupted due to problems with the track.
Which of the following statements are valid?

• A. A risk register should profile each risk in terms of probability and consequence.
• B. The risk register should specify the individual, or group of individuals, responsible for the management of each risk.
• C. The risk register for P should be updated frequently: for example, every two weeks.
• D. A properly compiled risk register will identify all the risks to which P could possibly be exposed.
• E. A risk register should concern itself with only the direct consequences of each risk such as injury to passengers and ignore indirect risks, such as re-routing trains due to an accident.

Answer: A,B

NEW QUESTION 55
With regard to the rote of the audit committee which of the following statements are correct? Select ALL that apply

• A. The audit committee should engage consultants to carry out business reviews
• B. The audit committee should review and monitor the effectiveness of the company's internal audit function
• C. The audit committee should design the system of internal controls
• D. The audit committee should provide arrangements for whistle blowing
• E. The audit committee should decide annually whether it needs an internal audit function
• F. The audit committee should decide annually whether it needs an external audit function

Answer: A,B,D

NEW QUESTION 56
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