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NEW QUESTION: 1
A central authority determines what subjects can have access to certain objects based on the organizational security policy is called:
A. Discretionary Access Control
B. Non-Discretionary Access Control
C. Rule-based Access Control
D. Mandatory Access Control
Answer: B
Explanation:
Reference: pg 46 Krutz: CISSP Prep Guide: Gold Edition
NEW QUESTION: 2
What is the minimum paid up capital needed to form a Pvt. Company?
A. Rs. 50000
B. No Minimum requirement
C. Rs. 100000
D. Rs. 500000
Answer: C
NEW QUESTION: 3
Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement
should not be accepted?
A. Management continues to employ an inefficient system of information technology to record financial
transactions.
B. Internal control activities requiring the segregation of duties are subject to management override.
C. It is unlikely that sufficient appropriate audit evidence is available to support an opinion on the financial
statements.
D. There are significant related party transactions that management claims occurred in the ordinary
course of business.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. If it is unlikely that sufficient appropriate audit evidence will be available to support
an opinion on the financial statements, it would be pointless to conduct an audit.
Choice "A" is incorrect. The existence of significant related party transactions would not prevent the auditor
from accepting an audit engagement, regardless of the whether or not such transactions occurred in the
ordinary course of business. The auditor would simply need to evaluate management's methods for
identifying and disclosing related party transactions, and ultimately evaluate financial statement disclosure,
as part of the audit.
Choice "B" is incorrect. Internal control activities are often subject to management override, but this is no
reason to reject a potential audit engagement. Rather, this risk should be assessed, and audit procedures
should be designed only after taking into account the assessed level of risk.
Choice "C" is incorrect. An inefficient system of information technology for recording financial transactions
may not be optimal for the company, but as long as it is an effective system (i.e., as long as it provides
reliable financial reporting), it will not affect the auditor's decision regarding acceptance of a new audit
engagement.