IIA CPEA Quiz 2 Topic 1 Questions 6-10

Question: 1

Directors and officers:

AShould protect themselves from environmental liability by refusing to become personally responsible

BMay be personally responsible for allowing pollution to occur unless they can show that they used due diligence to prevent the pollution from occurring

CHave no obligation with respect to environmental damage

DCan only be responsible for environmental damage if they were directly involved in its creation

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Question: 2

Directors and officers:

AShould protect themselves from environmental liability by refusing to become personally responsible

BMay be personally responsible for allowing pollution to occur unless they can show that they used due diligence to prevent the pollution from occurring

CHave no obligation with respect to environmental damage

DCan only be responsible for environmental damage if they were directly involved in its creation

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Question: 3

Section 3 of the General Principles Guideline (14010) requires that ''the audit should only be undertaken if, after consultation with the client, it is the lead auditor's opinion that:''

AThere are adequate resources to support the audit process

BThere is adequate time to support the audit process

CThere are at least 10 members of audit team to support the audit process

DNone of these

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Question: 4

Which one of the following is NOT a factor included in the control environment of an entity?

AIntegrity and ethical values

BRisk assessment

CCommitment to competence

DOrganization structure

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Question: 5

The major advantage of a product audit compared to a system or process audit is:

AIt's cheaper to perform

BIt can be performed away from the supplier's plant

CIt focuses attention on the final product or service

DIt normally does not require a final report

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IIA CPEA Quiz:2 Topic:1 Questions:6-10