Internal Auditing MCQs

Which of the following are components of the definition of internal auditing?

• Independence and objectivity

• A systematic and disciplined approach

• Helping the organization accomplish its objectives

• All of the answers

Assurance, Insight, and Objectivity comprise

• The mission of internal auditing

• The three lines of defense model

• The value proposition

• The objectives of internal auditing

Independent outside auditors provide financial reporting assurance services primarily for

• The benefit of third parties

• Management

• Board of directors

• The CEO

AVF Company's new CFO has asked the company's CAE to meet with him to discuss the role of the internal ausit functions. The CAE should inform the CFO that the overall responsibility of internal audit is to

• Review the integrity of financial and operating information and the methods used to accumulate and report information

• Determine whether the company's system of internal controls provides reasonable assurance that information is effectively and efficiently communicated to management

• Serve as an independent assurance and consulting activity designed to add value and improve the company's operations

• Assess the company's method for safeguarding its assets and, as appropriate, verify the existence of the assets

Which of the following statements is NOT TRUE about business objectives

• Business objectives represent targets of performance

• Establishing meaningful business objectives is a key component of the management process

• Establishing meaningful business objectives is a prerequisite to effective internal control

• Business objectives are managment's means of employing resources and assigning responsibilities

Within the context of internal auditing, assurance services are best defined as

• Professional activities that measure and communicate finalcial and business data

• Advisory servies intended to add value and improve an organization's operations

• Objective examinations of evidence for the purpose of providing independent assessments

• Objective evaluations of compliance with policies, plans, procedures, laws, and regulations

Which of the following is mandatory guidance within the IPPF

• Implementation guidance

• Supplemental guidance

• The value proposition

• The core principles

While planning an internal audit, the internal auditor obtains knowledge about the auditee to, among other things

• Develop an understanding of the auditee's objectives and risks

• Develop an attitude of professional skepticism about managemnet's assertions

• Make constructive suggestions to management concerning internal control improvements

• Evaluate whether misstatements in the auditee's performance reports shouls be communicateed to senior management and the audit committee

Which of the following is the premier certification sponsored by the IIA

• Certification in Control Self-Assessment

• Certified Internal Auditor

• Certification in Risk Management Assessment

• Certified Information Systems Auditor

Which of the folloeing is the ultimate position of a carrer internal auditor?

• CEO

• CFO

• CRO

• CAE