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Chapter 1

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

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

a)

Independence and objectivity.

b)

A systematic and disciplined approach

c)

Helping the organization accomplish its key component of the management process. objectives

d)

All of the above

2.

Assurance, Insight, and Objectivity comprise:

a)

The mission of internal auditing

b)

The three lines of defense model.

c)

The objectives of internal auditing.

d)

The value proposition

3.

External auditors provide financial reporting assurance services primarily for:

a)

The benefit of third parties

b)

Management

c)

Board of directors

d)

The CEO

4.

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

a)

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

b)

Assess the company’s methods for safeguarding its assets and, as appropriate, verify the existence of the assets

c)

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

d)

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

5.

Which of the following statements is not true about business objectives?

a)

Business objectives represent targets of performance

b)

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

c)

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

d)

Business objectives are management’s means of employing resources and assigning responsibilities

6.

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

a)

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

b)

Advisory services intended to add value and improve an organization’s operations.

c)

Professional activities that measure and communicate financial and business data.

d)

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

7.

Which of the following is mandatory guidance within the IPPF?

a)

Implementation guidance

b)

Supplemental guidance

c)

The value proposition.

d)

Topical requirements.

8.

Which of the following is supplemental guidance within the IPPF?

a)

The Purpose of Internal Auditing

b)

The Standards

c)

Global Practice Guides

d)

None of the above

9.

The Internal Audit Foundation exists to help audit leaders, practitioners, students, and academics experience continuous growth in their careers to propel them to become:

a)

Strong assurance providers.

b)

Strategic advisors

c)

External auditors

d)

CAEs.

10.

Which of the following is one of the 5 Cs essential to success as an internal auditor?

a)

Courage

b)

Consistency

c)

Collaboration

d)

Candidness

11.

Which of the following is a framework that can help individual internal auditors and internal audit functions assess their current competency levels and identify areas for improvement?

a)

Internal Control - Integrated Framework.

b)

International Professional Practices Framework

c)

Internal Audit Competency Framework

d)

Enterprise Risk Management Framework

12.

Internal auditors must have competent interpersonal skills. Which of the following does not represent an attribute of interpersonal skills?

a)

Communication

b)

Leadership

c)

Project management

d)

Team capabilities

13.

While planning an internal audit, the internal auditor obtains knowledge about the activity under review to, among other things:

a)

Develop an attitude of professional skepticism about management’s assertions

b)

Develop an understanding of the activity under review’s objectives and risks.

c)

Make constructive suggestions to management concerning internal control improvements

d)

Evaluate whether misstatements in the activity under review’s performance reports should be communicated to senior management and the audit committee.

14.

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

a)

Certification in Control Self-Assessment.

b)

Certified Internal Auditor.

c)

Certification in Risk Management Assessment

d)

Certified Information Systems Auditor.

15.

Which of the following is the ultimate position of a career internal auditor?

a)

CEO

b)

CFO

c)

CRO

d)

CAE