Group 4 - INTERNAL AUDIT CHARTER

. The IA Charter MUST define the nature of assurance, consulting services provided by the IA function

• True

• False

Board members typically include members who are part of managemen.

• True

• False

Answer explanation

: Board members are often NOT part of management.

What 3 elements of an internal audit MUST engagement clients be informed of?

• Purpose

• Authority

• Responsibility

• All of the above answers

The internal audit charter does not define the scope of internal audit activities.

• True

• False

Answer explanation

One of the purposes of the internal audit charter is to define the scope of internal audit activities

 

The CAE can simply review the internal audit charter at the start of an engagement and subsequently revisit it at the end.

• True

• False

Answer explanation

CAE must periodically review the internal audit charter, and present it to senior management and to the board of directors for approval

The authority, scope, and responsibility of the Information System Audit function is:

• Defined by the audit charter approved by the senior management/Board

• Defined by the I.T. Head of the organization, as the expert in the matter

• . Defined by the various functional divisions, depending upon criticality

•  Generated by the Audit division of the organization

The document used by the top management of organizations to delegate authority to the IS audit function is the

• audit calendar.

• audit charter

• risks register.
  
  

• audit compendium.

The audit charter should be approved by the highest level of management and should:

• . is updated often to upgrade with the changing nature of technology and the audit profession

• include audit calendar along with resource allocation.
  
  

• . include plan of action in case of disruption of business services

• outlines the overall authority, scope and responsibilities of the audit function

. Internal Audit function should be __________ and report directly to Audit Committee or board of directors.

• Objective

• Independent

• Confidentiality

• . Responsibility

An internal auditing team has made observations and recommendations that should significantly improve a division's operating efficiency. Out of appreciation of this work, and because it is the holiday season, the division manager present to in-charge internal auditor with a gift of moderate value. Which of the following best describes the action prescribed by The IIA's Code of Ethics?

• . Accept it, regardless of other circumstances, because its value is insignificant.

• Not accept it prior to submission of the final engagement communication.

• Not accept it if he is presumed to impair the internal auditor's judgment

• Not accept it, regardless of other circumstances, because its value is significant