Allain

8.Many of the procedures undertaken by the internal auditor are very similar to those performed by the external auditor.

Which three of the following may be performed by the internal auditor if he is to operate effectively?

• A. Monitoring of internal controls

• B. Expressing an opinion on the truth and fairness of the financial statements

• C. Making recommendations regarding improvements to controls

• D. Examining and testing financial information

9. Which one of the following best describes the term 'operational audit'?

• A. An audit performed by the operations director

• B. A statutory audit

• C. An audit performed by the operations director

• D. An audit of the operational processes of the organisation

10. To which two of the following parties would the internal auditor report?

• A. Shareholders

• B. Board of directors

• C. Audit committee

• D. External auditors

11.Which three of the following activities would typically be performed by both the internal and external auditor?

• A. Review of the efficiency of operations

• B. Review of compliance with laws and regulations

• C. Assessment of the effectiveness of internal controls

• D. Carrying out tests of details on transactions and balances

12.The scope and objectives of the internal audit function vary widely and depend on the size and structure of the entity and the requirements of its management.

Which three of the following functions could internal audit perform and still operate effectively?

• A. Advising management on cost effective controls for systems and activities

• B. Authorisation of transactions in excess of limits set by management

• C. Review of accounting systems and related controls

• D. Examination of financial and operational information for management

• E. Routinely preparing bank reconciliations

13.There are many similarities between the internal auditor and the external auditor. However, there are some crucial differences that are important to note.

Which two of the following usually only relate to the internal auditor?

• A. Their work is focused on the operations of the entire business

• B. They provide an opinion on the financial statements

• C. They are appointed by the shareholders of an entity

• D. The role can be carried out by employees of the entity

14.One of the emerging operational issues that internal auditors need to be involved with is cyber security (defined as the protection of systems, networks and data in cyberspace).

Which three of the following internal audit activities are most likely to feature in relation to an entity's cyber security?

• A. Testing the operating effectiveness of an entity's firewall and anti-virus software

• B. Reviewing the password protocols in place for employees with access to information systems

• C. Comparing the costs and benefits of the entity's online social media presence

• D. Monitoring the entity's website for signs of unauthorised modification