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    Intro To IA Quiz 1

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    Jao Flores
    The document contains an internal auditing quiz with 15 multiple choice questions covering topics related to the objectives, scope, independence, and standards of the internal auditing profession. The primary objective of internal auditing is to help employees effectively perform their jobs. Independence is best achieved through organizational status and objectivity. The most significant benefit of an audit committee to internal auditors is protecting their independence from undue management influence.

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    Intro To IA Quiz 1

    Uploaded by

    Jao Flores
    294 views16 pages
    The document contains an internal auditing quiz with 15 multiple choice questions covering topics related to the objectives, scope, independence, and standards of the internal auditing profession. The primary objective of internal auditing is to help employees effectively perform their jobs. Independence is best achieved through organizational status and objectivity. The most significant benefit of an audit committee to internal auditors is protecting their independence from undue management influence.

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    Intro to IA Quiz 1

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    The document contains an internal auditing quiz with 15 multiple choice questions covering topics related to the objectives, scope, independence, and standards of the internal auditing profession. The primary objective of internal auditing is to help employees effectively perform their jobs. Independence is best achieved through organizational status and objectivity. The most significant benefit of an audit committee to internal auditors is protecting their independence from undue management influence.

    Copyright:

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

    Intro To IA Quiz 1

    Uploaded by

    Jao Flores
    The document contains an internal auditing quiz with 15 multiple choice questions covering topics related to the objectives, scope, independence, and standards of the internal auditing profession. The primary objective of internal auditing is to help employees effectively perform their jobs. Independence is best achieved through organizational status and objectivity. The most significant benefit of an audit committee to internal auditors is protecting their independence from undue management influence.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 16

    Internal Auditing Quiz I

    Introduction to Internal Auditing


    2 Points Each
    1. The primary objective of internal
    auditing is to:

    a) Find errors and fraud within the company.


    b) Perform the preliminary work of external
    financial statement audit.
    c) Provide an opinion about the accuracy and
    completeness of the quarterly financial
    statements.
    d) Help the employees of the company
    effectively perform their jobs
    2. Which of the following best describes
    the objective of internal auditing?
    a. To assist members of the organization in the
    effective discharge of their responsibilities
    b. To assist management with the design and
    implementation of accounting and control
    systems
    c. To examine and evaluate an organization's
    accounting system as a service to management
    d. To monitor the organization's internal control
    system for the external auditors
    3. According to the Statement of Responsibilities of
    Internal Auditing, which of the following is not included
    in the scope of the internal audit function?
    a. Appraising the economy and efficiency with which resources are
    employed
    b. Reviewing the strategic management process, assessing the
    quality of management decision making both quantatively and
    qualitatively, and reporting the results to the audit committee
    c. Reviewing the means of safeguarding assets and, as appropriate,
    verifying the existence of such assets
    d. Reviewing operations or programs to ascertain whether results
    are consistent with established objectives and goals and whether
    the operations or programs are being carried out as planned.
    4. Of the following, which is the major objective
    of The Institute of Internal Auditors?
    a. Cultivate, promote and disseminate information
    concerning internal auditing and related subjects
    b. Oversee the activities of internal auditors
    c. Promulgate standards that must be followed by
    all corporations
    d. Investigate accusations that Certified Internal
    Auditors have violated The Institute of Internal
    Auditors Code of Ethics
    5. One of the purposes of the Standards for the
    Professional Practice of Internal Auditing as stated in
    the Introduction to the Standards is to
    a. Encourage the professionalization of internal auditing
    b. Establish the independence of the internal audit
    department and emphasize the objectivity of internal
    auditing
    c. Encourage external auditors to make more extensive
    use of the work of internal auditors
    d. Establish the basis for guidance and measurement of
    internal auditing performance
    6. Which of the following statements does not describe
    one of the purposes of The IIA Code of Ethics? The IIA
    Code of Ethics
    a. Sets forth basic principles in the practice of internal
    auditing
    b. Charges IIA members to maintain high standards of
    conduct
    c. Explains the internal audit profession's responsibility
    to society at large
    d. States that a distinguishing mark of a profession is
    acceptance by its members of responsibility to those
    it serves
    7. Independence permits internal auditors to render
    impartial and unbiased judgments. The best way to
    achieve independence is through
    a. Individual knowledge and skills
    b. Organizational status and objectivity
    c. Supervision within the organization
    d. Organizational knowledge and skills
    8. Which of the following is considered a major reason
    for establishing an internal audit function?

    a. To relieve overburdened management of the


    responsibility for establishing an effective control
    structure
    b. To safeguard resources entrusted to the organization
    c. To ensure the accuracy, reliability and timeliness of
    financial and operating data used in managment's
    decision making
    d. To assist members of the organization in the
    measurement and evaluation of the effectivenss of the
    established internal control structure
    9. The internal auditor's responsibility for the
    prevention of fraud includes all of the
    following except
    a. Determining if the organizational
    environment fosters control consciousness
    b. Ensuring that fraud will not occur
    c. Being aware of activities in which fraud is
    likely to occur
    d. Evaluating the effectiveness of actions taken
    by management to deter fraud
    10. The internal auditing profession is believed
    to have advanced primarily as a consequence of
    a. Increased interest by graduating students and
    experienced auditors
    b. The limitation of external audit scope

    c. Job qualification specifications that include added


    emphasis on background knowledge and skills
    d. Increased complexity and sophistication of
    business operations
    11. The audit committee can serve several important purposes,
    some of which directly benefit internal auditing. The most
    significant benefit provided by the audit committee to the
    internal auditor is

    a. Protecting the independence of the internal


    auditor from undue management influence
    b. Reviewing annual audit plans and monitoring
    audit results
    c. Approving audit plans, scheduling, staffing and
    meeting with the internal auditor as needed
    d. Reviewing copies of the procedures manuals for
    selected company operations and meeting with
    company officials to discuss them
    12. The chief audit executive (CAE), in discharge of his or her
    duties, shall be accountable to
    management and the audit committee to do which of the
    following?
    a. Provide information periodically on the status
    and results of the annual audit plan and the
    sufficiency of department resources
    b. Report on the financial performance of the
    company
    c. Ensure that the financial statements are properly
    prepared for review by the external auditors
    d. Set up controls for the detection and prevention
    of fraud
    13. Independence is most likely impaired by an
    internal auditor’s
    a. Continuation on an engagement at a division for
    which (s)he will soon be responsible as the result
    of a promotion
    b. Reduction of the scope of an engagement due to
    budget restrictions
    c. Participation on a task force that recommends
    standards for control of a new distribution system
    d. Review of a purchasing agent’s contract drafts
    prior to their execution.
    14. From a modern internal auditing perspective, which
    one of the following statements represents the most
    important benefit of an internal audit department to
    management of the company?
    a) Assurance that the organization is complying
    with legal requirements.
    b) Assurance that fraudulent activities will be
    detected.
    c) Assurance that there is reasonable control
    over day-to-day operations.
    d) Assurance that published financial statements
    are correct.
    15. When faced with an imposed scope
    limitation, the chief audit executive needs to
    a. Refuse to perform the engagement until the
    scope limitation is removed.
    b. Communicate the potential effects of the scope
    limitation to the board.
    c. Increase the frequency of engagements
    concerning the activity in question.
    d. Assign more experienced personnel to the
    engagement.

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