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    Attribute Standards Quiz

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    Jao Flores
    This document appears to be a quiz testing knowledge of internal audit standards and concepts. It contains 15 multiple choice questions covering topics such as objectivity, scope of responsibilities, reliance on external auditors' work, and roles/responsibilities in the internal control process. The questions assess understanding of authoritative sources like the Standards and Code of Ethics that govern internal audit practices.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Attribute Standards Quiz

    Uploaded by

    Jao Flores
    148 views16 pages
    This document appears to be a quiz testing knowledge of internal audit standards and concepts. It contains 15 multiple choice questions covering topics such as objectivity, scope of responsibilities, reliance on external auditors' work, and roles/responsibilities in the internal control process. The questions assess understanding of authoritative sources like the Standards and Code of Ethics that govern internal audit practices.

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    This document appears to be a quiz testing knowledge of internal audit standards and concepts. It contains 15 multiple choice questions covering topics such as objectivity, scope of responsibilities, reliance on external auditors' work, and roles/responsibilities in the internal control process. The questions assess understanding of authoritative sources like the Standards and Code of Ethics that govern internal audit practices.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    148 views16 pages

    Attribute Standards Quiz

    Uploaded by

    Jao Flores
    This document appears to be a quiz testing knowledge of internal audit standards and concepts. It contains 15 multiple choice questions covering topics such as objectivity, scope of responsibilities, reliance on external auditors' work, and roles/responsibilities in the internal control process. The questions assess understanding of authoritative sources like the Standards and Code of Ethics that govern internal audit practices.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    Attribute Standards Quiz

    2 points each/ No erasures


    1. Internal auditors should be objective.
    Objectivity
    a. Requires internal auditors not to subordinate
    their judgement on audit matters to that of
    others
    b. Is required only in assurance engagements
    c. Is managed at the individual auditor,
    engagement, functional and organizational levels
    d. Prohibits internal auditors from providing
    consulting services relating to operations for
    which they had previous responsibility
    2. The authority of the internal audit
    activity is limited to that granted by:
    a. The board and the financial controller.
    b. Senior management and the Standards.
    c. Management and the board.
    d. The audit committee and the Chief Financial
    Officer.
    3. During an engagement to evaluate the organization’s
    accounts payable function, an internal auditor plans to
    confirm balances with suppliers. What is the source of
    the authority for such contacts with units outside the
    organization?

    a. Internal audit activity policies and procedures


    b. The Standards
    c. The Code of Ethics
    d. The internal audit activity’s charter
    4. The internal audit activity’s scope of
    responsibilities includes

    a. Eliminating risk
    b. Evaluating risk
    c. Managing risk
    d. Controlling risk
    5. Internal auditing has planned an engagement to evaluate the effectiveness of
    the quality assurance function as it affects the receipt of goods, the transfer
    of the goods into production, the scrap costs related to defective items. The
    engagement client argues that such an engagement is not within the scope of
    the internal audit activity and should come under the purview of the quality
    assurance department only. What is the most appropriate response?

    a. Refer to the internal audit activity’s charter and approved engagement plan
    that includes the area designated for evaluation in the current time period.
    b. Because quality assurance is a new function, seek the approval of
    management as mediator to set the scope of the engagement.
    c. Indicate that the engagement will evaluate the function only in accordance
    with the standards set by, and approved by, the quality assurance function
    before beginning the engagement.
    d. Terminate the engagement because it will not be productive without the
    client’s cooperation
    6. Jan is trying to locate a standard identifying the
    criteria for evaluating internal audit activity. How
    can Jan quickly determine which standards supply
    this information?

    a. Read the title of each Standard


    b. Look at the Standard numbers
    c. Read the first sentence of each Standard
    d. Read the title and first sentence of each Standard
    7. The best rationale of rotating internal audits so that
    different individuals are assigned to consecutive audits of
    a given auditee is to

    a. Increase the diligence exercised by the internal auditors who


    will know that the quality of their work will be apparent to the
    next set of internal auditors.
    b. Avoid the development of bias toward a given auditee
    c. Prevent burnout on the part of the internal auditor which may
    lead to excessive turnover in the internal audit department
    d. Promote rapid professional development on the part of the
    internal auditors by exposing them to the full range of
    organizational activities.
    8. The function of internal auditing, as related to
    internal financial reports, would be to:

    a. Ensure compliance with reporting procedures.


    b. Review the expenditure items and match each item
    with the expenses incurred.
    c. Determine if there are any employees expending funds
    without authorization.
    d. Identify inadequate controls that increase the likelihood
    of unauthorized expenditures.
    9. What computer-assisted audit technique
    would an auditor use to identify a fictitious or
    terminated employee?
    a. Parallel simulation of payroll calculations.
    b. Exception testing for payroll deductions.
    c. Recalculations of net pay.
    d. Tagging and tracing of payroll tax-rate
    changes.
    10. To improve audit efficiency, internal auditors can
    rely upon the work of external auditors that is:

    a. Performed after the internal audit engagement.


    b. Primarily concerned with operational objectives
    and activities.
    c. Coordinated with internal audit activity.
    d. Conducted in accordance with the IIA Code of
    Ethics.
    11. Which of the following fraudulent entries is most
    likely to be made to conceal the theft of an asset?

    a. Debit expenses, and credit the asset.


    b. Debit the asset, and credit another asset account.
    c. Debit revenue, and credit the asset.
    d. Debit another asset account, and credit the asset.
    12. An adequate system of internal controls is
    most likely to detect an irregularity perpetrated
    by a:
    a. Group of employees in collusion.
    b. Single employee.
    c. Group of managers in collusion.
    d. Single manager.
    13. Directors, management, external auditors, and internal auditors
    all play important roles in creating proper control processes. Senior
    management is primarily responsible for

    a. Establishing and maintaining an organizational culture.


    b. Reviewing the reliability and integrity of financial and operational
    information.
    c. Ensuring that external and internal auditors oversee the
    administration of the system of risk management and control
    processes.
    d. Implementing and monitoring controls designed by the board of
    directors.
    14. Freedom from conditions that threaten
    objectivity or the appearance of objectivity is

    a. Control
    b. Independence
    c. Compliance
    d. Avoidance of interest of conflict
    15. The IIA Rules of Conduct set forth in The IIA
    Code of Ethics
    a. Are guidelines to assist internal auditors in
    dealing with engagement clients
    b. Are interpreted by the Principles
    c. Describe behavior norms expected of internal
    auditors
    d. Apply only to particular conduct specifically
    mentioned

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