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1)Ethicscan bedefinedas:A synonymous term foracountry’slegal systemRules that

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1)Ethicscan bedefinedas:A synonymous term foracountry’slegal systemRules that

1) Ethics can be defined as:

  1. A synonymous term for a country’s legal system
  2. Rules that

guide us in our everyday behaviour, thoughts and actions

Both a. & b. are correctNone of the options are correct

2) Which of the following statements regarding internal auditing is not true?

  1. Internal auditing can improve an organisation’s operations by providing guidance for management decisions.
  2. Internal auditing can improve an organisation’s operations by providing guidance for moreefficient business operations.
  3. Internal auditing is a subjective assurance and consulting activity designed to add value andimprove an organisation’s operations.
  4. Internal auditing is undertaken by professionals who evaluate and improve an organisation’srisk management, control and governance processes to add value to the organisation.

3) If a firm failed to disclose billions of dollars in short term debt in its annual financial report that has beendistributed to shareholders, who should be found guilty? (i) Directors of the board, (ii) Internal auditor, (iii) External auditor.

  1. (i) (ii) (iii)
  2. (i) (ii)
  3. (ii) (iii)
  4. (i) (iii)

4) A successful implementation of an ERP system is:

  1. Complex
  2. Time-consuming
  3. Expensive
  4. All of the options are correct.

5) When considering new opportunities for technology within the organisation, it is critical to consider:

  1. whether the technology is the latest available
  2. whether the technology aligns with the overall organisational strategy
  3. whether the technology is user friendly
  4. All of the options are correct

6) Feasibility analysis does not involve determining whether:

  1. the new systemcosts too much
  2. the users withinthe organisationwill accept the new system
  3. the new systemcan be built within aspecific period
  4. the legal environment is suitable for the new system

7) To achieve the overall objective of the purchasing phase in the expenditure cycle, an organisation needs to:

  1. Approve and authorise initiated purchases properly.
  2. Ensure that accepted goods and services must meet quality and delivery specifications.
  3. Record all purchase commitments and obligations accurately.
  4. All of the options are correct.

8) Which of the following is NOT a concern of the expenditure cycle?

  1. Favourable settlement terms are negotiated with the supplier.
  2. Payments match supplier invoice, purchase order and delivery docket.
  3. Payments are made by authorised employees _
  4. There are sufficient goods in the finished goods inventory to fulfil the customer’s order.

9) A cost leadership strategy would indicate that:

  1. Suppliers who can provide goods of suitable quality at a lower price should be selected.
  2. Suppliers who can provide goods at the lowest price should be selected.
  3. Suppliers who can provide goods at a lower price and the longest settlement period should
  4. be selected.
  5. Suppliers aligned with the organisation’s overall business strategy should be selected.

10) There are two perspectives of organisational design:

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