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Halal Internal Audit

Total questions: 10

Worksheet time: 50mins

Name
Class
Date
1.

Which of the following best describes the purpose of the Halal internal audit activity?

a)

To add value and improve a halal organization’s operations

b)

To assist management with the design and implementation of Halal’s risk management and control systems

c)

To examine and evaluate a halal organization’s system as a service to management

d)

To monitor the organization’s halal internal control system for the external auditors.

2.

A Halal internal audit activity’s policy sets forth which of the following items?

a)

Organizational structure of the Halal internal audit activity

b)

Annual halal engagement work schedule

c)

Halal Internal auditing objectives

d)

Purpose, authority, and responsibility of the Halal internal audit activity.

3.

A written Halal charter or policy approved by the board that formally defines the Halal internal audit activity’s purpose, authority, and responsibility enhances its

a)

Exercise of due professional care

b)

Proficiency.

c)

Relationship with management

d)

Independence

4.

Which of the following most seriously compromises the independence of the halal internal audit activity?

a)

Halal Internal auditors frequently draft revised procedures for departments whose procedures they have criticized in an engagement communication

b)

The chief audit executive has dual reporting responsibility to the halal organization’s chief executive officer and the board of directors

c)

Halal internal audit activity and the organization’s halal external auditors engage in joint planning of total engagement coverage to avoid duplicating each other’s work.

d)

Halal internal audit activity is included in the review cycle of the organization’s contracts with other organizations before the contracts are executed

5.

Which of the following statements is true with respect to due professional care?

a)

Halal internal auditor should perform detailed tests of all transaction before communicating results

b)

An item should not be mentioned in an engagement communication unless Halal internal auditor is certain of the item

c)

An engagement communication should never be viewed as providing an infallible truth about a subject

d)

Halal internal auditor has no responsibility to recommend improvements

6.

Follow-up activity may be required to ensure that corrective action has taken place for certain observations made in a Halal assurance management engagement. Halal internal audit activity’s responsibility to perform follow-up activities as required should be defined in the

a)

Halal Internal audit activity’s written charter or the agreement with the client

b)

Mission statement of the halal audit committee

c)

Engagement memo issued prior to each engagement

d)

Purpose statement within applicable engagement communications

7.

One of the purpose of the Standards for the Professional Practice of Halal Internal Auditing as stated in the Introduction to the current version of the Standards is to

a)

Encourage the professionalization of halal internal auditing

b)

Establish the independence of the halal internal audit activity and emphasize the objectivity of halal internal auditing

c)

Encourage halal external auditors to make more extensive use of the work of internal auditors.

d)

Establish the basis for the measurement of halal internal audit performance.

8.

To avoid being the apparent cause of conflict between an organization’s senior management and the halal audit committee, halal chief audit officer should

a)

Communicate all engagement results to both senior management and the halal audit committee

b)

Strengthen the independence of the halal internal audit activity through organizational status

c)

Discuss all reports to senior management with the halal audit committee first.

d)

Request board approval of policies that include halal internal audit activity relationships with the audit committee.

9.

Which of the following statements is true with respect to due professional care?

a)

Halal internal auditor should perform detailed tests of all transactions before communicating results

b)

An item should not be mentioned in an engagement communication unless the halal internal auditor is absolutely certain of the item

c)

An engagement communication should never be viewed as providing an infallible truth about a subject.

d)

Halal internal auditor has no responsibility to recommend improvements

10.

A Halal internal auditor has some suspicion of, but no information about, potential misstatement of financial statements. Halal internal auditor has failed to exercise due professional care if (s)he

a)

Identified potential ways in which a misstatement or non-compliance could occur and ranked the items for investigation

b)

Informed the engagement manager of the suspicions and asked for advice on how to proceed.

c)

Did not test for possible misstatement because the engagement work program had already been approved by engagement management

d)

Expanded the engagement work program, without the engagement client’s approval, to address the highest ranked ways in which a misstatement may have occurred.