REVISION CHAPTER ONE

What is the primary purpose of an assurance activity?

• To assess evidence relevant to the subject matter of interest

• To provide advice and assistance relating to the subject matter of interest

• To evaluate and improve the effectiveness of risk management, control, and governance processes

• To assess the composition of the Board of Directors

Which of the following is NOT a role of internal auditors?

• Assessing the effectiveness of the internal control system

• Evaluating the competencies and capabilities of management

• Ensuring compliance with applicable laws and regulations

• Conducting external audits of financial statements

What is the purpose of the International Professional Practices Framework (IPPF)?

• To provide a structural blueprint for the internal audit profession

• To establish the Code of Ethics for internal auditors

• To outline the roles and responsibilities of internal auditors

• To promote an ethical culture in the profession of internal auditing

What is the role of the Audit Committee in relation to internal auditors?

• To oversee the internal audit process and support the independence of internal auditors

• To interfere with the work of internal auditors and control their activities

• To evaluate the competencies and capabilities of internal auditors

• To provide assurance on the effectiveness of risk management and control processes

What is the purpose of a financial audit conducted by internal auditors?

• To evaluate the efficiency and effectiveness of internal control systems

• To assess the competencies and capabilities of management

• To ensure compliance with applicable laws and regulations

• To attest the fairness, accuracy, and reliability of financial data

What is the main role of the third line of defence in the three lines of defence model?

• To provide independent assurance on risk management and control processes

• To oversee risk management and compliance processes

• To identify and manage risks in the organisation

• To monitor the implementation of effective risk management practices

What is the purpose of the Code of Ethics for internal auditors?

• To establish the basic principles of internal auditing

• To provide a framework for performing internal audit engagements

• To promote an ethical culture in the profession of internal auditing

• To ensure conformance with the International Professional Practices Framework

What is the role of internal auditors in relation to fraud audits?

• To identify potentially fraudulent acts and conduct investigations

• To evaluate the effectiveness of the internal control system

• To assess the competencies and capabilities of management

• To provide assurance on the fairness, accuracy, and reliability of financial data

What is the organisational status of the internal audit function?

• It must report functionally to the Audit Committee and administratively to the CEO

• It must report functionally to the CEO and administratively to the Audit Committee

• It must report functionally and administratively to the Board of Directors

• It must report functionally and administratively to the senior management

What is the role of internal auditors in relation to risk management?

• To assess the effectiveness of risk management processes

• To evaluate the competencies and capabilities of management

• To ensure compliance with applicable laws and regulations

• To provide assurance on the fairness, accuracy, and reliability of financial data