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Created on April 06, 2026 By

CA Sonal Saboo

CMA Final

Final Cost and Management Audit PN-17 Quiz 5

This quiz is based on the CMA Cost and Management Audit paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA CMAD concepts.

1 / 25

Category: Cost and Management Audit PN-17

1. Security in the design of information systems is used to .

a. Inspect the system and check that it is built as per the specifications

b. Protect data and programs from accidental or intentional loss

c. Ensure that the system processes data as it was designed to and that the results are reliable

d. Ensure the privacy of data processed by it

2 / 25

Category: Cost and Management Audit PN-17

2. Parallel runs are used

a. During regular operation of an information system

b. When a system is initially implemented.

c. Whenever errors are found in a computerized system

d. Whenever management insists.

3 / 25

Category: Cost and Management Audit PN-17

3. An audit trail is established in a system to .

a. Detect errors in a system.

b. Enable auditing of a system.

c. Localize the source of an error in a system.

d. Trail a program.

4 / 25

Category: Cost and Management Audit PN-17

4. By auditing around the computer, we mean .

a. The inputs and the corresponding outputs are compared and checked for correctness.

b. The programs and procedures are checked for correctness.

c. Special synthetic data is input and outputs checked for correctness

d. Programs are written to check the functioning of the computer.

5 / 25

Category: Cost and Management Audit PN-17

5. Audit in the design of information system is used to

a. Inspect the system and check that it is built as per specifications.

b. Protect data from accidental or intentional loss.

c. Ensure that the system processes data as it was designed to and that the results are reliable.

d. Ensure the privacy of data processed by it.

6 / 25

Category: Cost and Management Audit PN-17

6. A check-point procedure .

a. Checks program correctness at certain points

b. Divides a program into smaller parts.

c. Breaks programs into portions at the end of each of which a check point program is executed.

d. Finds points in a program where it is convenient to check it.

7 / 25

Category: Cost and Management Audit PN-17

7. Control in the design of an information system is used to

a. Inspect the system and check that it is built as per specifications.

b. Protect data from accidental or intentional loss.

c. Ensure that the system processes data as it was designed to and that the results are reliable.

d. Ensure the privacy of data processed by it.

8 / 25

Category: Cost and Management Audit PN-17

8. What refers to the act of offense of saying something false or malicious that damages somebody’s reputation?

a. Libel.

b. Slander.

c. Defamation.

d. IPR violation.

9 / 25

Category: Cost and Management Audit PN-17

9. Which strategy influences internal communications?

a. Organisation’s strategy.

b. A strategy of its own.

c. Both of above

d. Depends upon the media.

10 / 25

Category: Cost and Management Audit PN-17

10. Which type of advertising focuses on the basis of experience that customers have with a company?

a. Corporate Image.

b. Institutional.

c. Perception Oriented.

d. Identity.

11 / 25

Category: Cost and Management Audit PN-17

11. Mass communication is the process of by spreading a message to the desired public.

a. Mass persuasion.

b. Mass awareness.

c. Mass enlightenment

d. Mass prelude.

12 / 25

Category: Cost and Management Audit PN-17

12. What is the essential trait of a PRO?

a. Have high standard of integrity.

b. Should be a learned

c. Should gain the people’s confidence easily.

d. All of these.

13 / 25

Category: Cost and Management Audit PN-17

13. Who is starting point of bottom–up communication?

a. Employees.

b. Customers.

c. Management.

d. Depends upon the media.

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Category: Cost and Management Audit PN-17

14. What is the business case for CSR?

a. Better motivated staff reduce operating costs.

b. Increased brand value and reputation

c. None of the above

d. All of these

15 / 25

Category: Cost and Management Audit PN-17

15. What is the main factor to maintain corporate image?

a. Industry Goodwill.

b. Employee loyalty.

c. Shareholder’s trust.

d. All of these

16 / 25

Category: Cost and Management Audit PN-17

16. There are no fixed items of evidence to be checked by Management Auditor. A Management Auditor has to rely more on .

a. his experience and acumen

b. Auditors Working Paper.

c. Physical Verification Sheet

d. Information Provided by Management.

17 / 25

Category: Cost and Management Audit PN-17

17. Management Audit Report Submitted to:

a. Cost Audit Branch

b. Audit Committee

c. Management of Concern

d. Central Government

18 / 25

Category: Cost and Management Audit PN-17

18. Consumer Service Audit is part of

a. Business Activity Audi

b. Social Audit

c. Service Audit

d. None of Above

19 / 25

Category: Cost and Management Audit PN-17

19. Important point in corporate planning is

a. Time and Work Study

b. Imposing Control System

c. Forecasting and goal setting

d. SWOT analysis

20 / 25

Category: Cost and Management Audit PN-17

20. As per Leslie R. Howard, a Management audit is an investigation of a business from the in order to ascertain whether sound management prevails throughout.

a. Highest level downwards

b. Lowest level upwards

c. Either (a) or (b).

d. none of the above

21 / 25

Category: Cost and Management Audit PN-17

21. Reports present conclusions based on .

a. Intuition

b. Belief

c. Investigation

d. Impression

22 / 25

Category: Cost and Management Audit PN-17

22. Which of these must be avoided in a technical report?

a. Facts

b. Logical conclusion

c. Objective evaluation

d. Subjective evaluation

23 / 25

Category: Cost and Management Audit PN-17

23. report provides rationed findings

a. Informative

b. Interpretative

c. Routine

d. Progress

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Category: Cost and Management Audit PN-17

24. is a very important method of presenting information to the management in a pictorial manner and attracts the eye of the recipient more quickly and forcibly.

a. Tabular Reports

b. Descriptive Reporting

c. Graphic Presentation

d. All of the above

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Category: Cost and Management Audit PN-17

25. are to be presented after making an investigation of the problem which requires to be investigated.

a. Memorandum

b. Special reports

c. Summary

d. Special facts

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Final PN-17 Cost and Management Audit Quiz 5

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