Internal Audit Terms and Definitions

What is an Audit?

• A systematic, independent and documented process for obtaining objective evidence.

• A method used to determine whether the system is faulty.

• A check arising from a complaint made by an employee.

• An inspection of the process after it is implemented.

To ensure the internal auditors can render impartial or unbiased opinions during audit engagements, they shall:

• Not involve in day-to-day operations of the organization.

• Not involve in auditing his/her own activities that will lead to any conflict of interest.

• Not make management decisions.

• Not report to the CEO of the organization.

Which 1 (ONE) of the following describe the audit scope?

• It is the extent and boundaries of an audit.

• It is the direction given by management to audit the departments.

• It is the purpose in carrying out the internal audits.

• It is the description generally referred to as internal audit responsibility.

Senior management of an organization has requested that the internal audit function help educate employees about internal control concepts. This work is an example of which type of engagement:

• An assurance engagement

• A training consulting engagement

• A facilitative consulting engagement

• An advisory consulting engagement

Which 1 (ONE) of these statements is not the definition of audit criteria?

• A set of requirements used as a reference against which objective evidence is compared.

• If the audit criteria are legal requirements, the words "compliance" or "non-compliance" are often used in an audit finding.

• A set of requirements may include policies, procedures, work instructions, legal requirements, contractual obligations, etc.

• A set of guidelines to assist the internal quality auditors.

How are objective evidence obtained when conducting internal audits?

• It can be obtained through observation, measurement, test, interview or by other means.

• It can be obtained by using public media, magazines and catalogues.

• It can be obtained by questionnaire given to the auditees.

• It can be obtained from third parties' records and registers.

The policies and procedures helping to ensure that management directives are executed and actions are taken to address risks to achievement of objectives describes

• Control activities.

• Control environments.

• Risk assessments.

• Monitoring.

Which of the following is NOT audit findings

• Observation raised during the audits.

• Minor non-conformity raised during the audits.

• Opinion received by an auditee that a manager is not behaving appropriately.

• Major non-conformity raised during the audits.

Which 1 (ONE) defines an audit conclusion?

• The result is strictly to determine either conformity or nonconformity of the audits conducted.

• The result of the audit findings to help the auditor to draw conclusions regarding the various aspects of the audits.

• The result is for the purpose to determine the competency of an individual.

• The result is to establish whether the project undertaken meet the budget.

What is the role of the auditee?

• The auditee role is to assist the management in answering questions raised by the auditor.

• The auditee role is to assist the auditor in preparing audit conclusions.

• The auditee role is to fill the gap of the manager being absent.

• The auditee role is to assist the auditor in conducting a successful audit.