Online Access Free CPEA Practice Test

Which one of the following authorities shall fix the remuneration of the auditors, if auditors are appointed by the SECP?

• A.Company registrar
• B.Shareholders
• C.Directors
• D.SECP

The submittals, concise reports on the status of the audit program, should contain the following information at a minimum:

• A.Development and implementation of an auditor evaluation program
• B.Trends in the types of noncompliance items to identify potential corporate wide issues
• C.Trends in the number or percentage of repeat findings
• D.Both A and B

An effective environmental auditing system will likely include all of the following general elements Except:

• A.Implicit top management support for environmental auditing and commitment to followup on audit findings
• B.A process that collects, analyzes, interprets and documents information sufficient to achieve audit objectives
• C.Adequate team staffing and auditor training
• D.An environmental auditing function independent of audited activities.

A "clean" environmental audit:

• A.Ensures that a purchaser will not bear responsibility for polluted property
• B.Transfers liability for property pollution to the person performing the audit
• C.Provides complete assurance that a property is not contaminated
• D.Poses risks as there are some pollutants for which the audit cannot test

Which one of the following combinations of duties is most likely to be considered an acceptable practice from an internal control viewpoint if the combination of duties described are to be performed by the same employee?

• A.maintaining the perpetual inventory records and receiving all supply deliveries
• B.maintaining the perpetual inventory records and maintaining the accounts receivable ledger
• C.maintaining the accounts receivable ledger and receiving all cash payments submitted against it
• D.receiving all cash payments and depositing the cash payments in the bank