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Which of the following statements best describes a functional difference between external auditors and internal auditors?
Which of the following statements best describes a functional difference between external auditors and internal auditors?A . Internal auditors evaluate past achievements to understand whether controls are operating effectively, and external auditors focus on the accuracy of financial reporting. B. Internal auditors provide assurance about the sufficiency of controls to...
Which statement is accurate regarding reporting on the quality assurance and improvement program (OAIP) to conform with the International Standards for the Professional Practice of Internal Auditing?
Which statement is accurate regarding reporting on the quality assurance and improvement program (OAIP) to conform with the International Standards for the Professional Practice of Internal Auditing?A . The chief audit executive (CAE) should report all stages of the OAlP's development and key milestones. B. The CAE should report only...
What is an appropriate first step in an internal auditor’s fraud risk assessment to evaluate how the organization manages such risk?
What is an appropriate first step in an internal auditor’s fraud risk assessment to evaluate how the organization manages such risk?A . Develop preventive and detective controls B. Identify potential fraud scenarios C. Assess the impact and likelihood of fraud risks D. Determine fraud risk responsesView AnswerAnswer: B
Which of the following relates to the concept of due professional care?
Which of the following relates to the concept of due professional care?A . An auditor attempts to obtain information needed to complete an assurance engagement but is denied access. B. The appointment of the chief audit executive is ratified by the board. C. An auditor demonstrates a good understanding of...
What type of controls would the auditor likely recommend to management to specifically address this problem?
The internal auditor of a small manufacturer noted that the accounting department has insufficient staff to achieve proper segregation of duties. What type of controls would the auditor likely recommend to management to specifically address this problem?A . Entity-level. B. Preventive. C. Directive. D. Compensating.View AnswerAnswer: B
Which of the following situations is most likely to prompt the internal audit activity to disclose its nonconformance with the Standards?
Which of the following situations is most likely to prompt the internal audit activity to disclose its nonconformance with the Standards?A . One of the organization's senior internal auditors owns a side business, though to date, no sales have been made to this business. B. The annual internal audit plan...
Who has the ultimate responsibility of implementing the organization’s governance system?
Who has the ultimate responsibility of implementing the organization’s governance system?A . Stakeholders B. The board C. The chief executive officer D. Internal auditorsView AnswerAnswer: C
Which of the following would a chief audit executive most likely use to identify a need for improvement in a staff internal auditor's business acumen?
Which of the following would a chief audit executive most likely use to identify a need for improvement in a staff internal auditor's business acumen?A . A quality assessment review. B. An internal audit client survey. C. A control self-assessment. D. A peer review of the internal audit activity.View AnswerAnswer:...
What should the CAE recommend as the most appropriate course of action for the executive?
A senior executive at a government-owned organization received an invitation to attend a public exhibition where he can learn about new trucks relevant to the organization's business. As a special perk, the executive is offered an opportunity to drive a luxury vehicle manufactured by one of the exhibiting companies. Prior...
With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?
With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?A . The scope and frequency of both internal and external quality assessments. B. The list of audit engagements that will be...
