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WorksheetsChapter 2
Total questions: 15
Worksheet time: 8mins
A primary purpose of the Standards is to:
Promote coordination of internal and external audit efforts.
Establish a basis for evaluating internal audit performance.
Develop consistency in internal audit practices.
Provide a codification of existing practices
Which of the following are "mandatory guidance" in The IIA’s IPPF?
I. Requirements of each standard.
II. Considerations for each standard.
III. Evidence of conformance for each standard.
IV. The Topical requirements
I, II, and IV.
IV only
I and IV
I, II, III, and IV
An internal auditor provides income tax services during the tax season. For which of the following activities would the auditor most likely be considered in Domain II?
Preparing, for a fee, a division manager’s personal tax returns
Appearing on a local radio show to discuss retirement planning and tax issues.
Receiving a stipend for teaching an evening tax class at the local junior college.
Working on weekends for a friend who has small CPA firm
An internal auditor is auditing a division in which of the division’s chief financial officer (CFO) is a close friend. The internal auditor learns that the friend is to be replaced after a series of critical contract negotiations with the Department of Defense. The auditor relays this information to the friend. Which principle of Domain II (Ethics and Professionalism) has been violated?
Demonstrate Integrity.
Maintain Objectivity
Maintain Confidentiality
Exercise Due Professional Care
The IIA’s Standards require internal auditors to exercise due professional care while conducting assurance engagements. Which of the following is not something an internal auditor is required to consider in determining what constitutes the exercise of due professional care in an assurance engagement of treasury operations?
The audit committee has requested assurance on the treasury function’s compliance with a new policy on use of financial instruments
Treasury management has not instituted any risk management policies
The independent outside auditors have requested to see the engagement repot and working papers
The treasury function just completed implementation of a new real-time investment tracking system.
In which of the following situations does the internal auditor potentially lack objectivity?
A payroll accounting employee assists an internal auditor in verifying the physical inventory of small motors
An internal auditor discusses a significant issue with the vice president to whom the employee of the activity under review reports prior to drafting the audit report.
An internal auditor recommends standards of control and performance measures for a contract with a service organization for the processing of payroll and employee benefits
A former purchasing assistant performs a review of internal controls over purchasing four months after being transferred to the internal audit department
Which of the following is/are components of a standard?
I. Requirements.
II. Considerations for Implementation.
III. Evidence of conformance.
I only
I and II
I and III
I, II, and III
According to the Standards, which of the following must the internal audit manager think about when considering appropriate due care while planning an assurance engagement?
The opportunity to cross-train internal audit staff
The cost of assurance in relationship to potential benefits.
Job openings in the area that may be of interest to internal auditors assigned to the engagement
The potential to deliver advisory services to the activity under review
Which of the following types of IPPF guidance require(s) public exposure?
I. A new Global Practice Guide.
II. A new standard.
III. A new Topical Requirement.
IV. A new definition in the Standards glossary.
Ill only
II and IV
II, III, and IV.
I, II, III, and IV
Which of the following is required of the internal audit function per the Standards?
Develop a final communication that includes the engagement’s objectives, scope, recommendations and/or action plans, if applicable, and conclusions
Issue an overall opinion on the adequacy of the organization’s system of internal controls annually
Obtain an annual representation from management acknowledging management’s responsibility for the design and implementation of internal controls to prevent illegal acts
Assess whether the IT governance of the organization sustains and supports the organization’s strategies and objectives
Which of the following is a Principle in the Standards?
Maintain confidentiality
Promote an ethical culture in the internal audit profession
Develop consistency in internal audit practices
Is appropriately positioned and adequately resourced
Which of the following would provide the CAE with guidance on how to achieve due professional care in an audit engagement of the organization’s sustainability program?
I. Considerations for Implementation for Standards 4.2 Due Professional Care.
II. Examples of Evidence of Conformance for Standard 4.2 Due Professional Care.
III. A Topical Requirement on Sustainability.
IV. Considerations for Implementation for Standard 13.4 Evaluation Criteria.
V. A Global Practice Guide – Auditing Organizational ESG Reporting.
III only
III and IV only
I and II only
I, II, III, IV, and V
To determine what needs to be done regarding follow-up on an assurance engagement the internal audit staff just completed, one would consult:
The standards in Domain II
The standards in Domain III
The standards in Domain IV
The standards in Domain V
In addition to the Standards, some internal audit departments follow other standards in conducting their work, either because of regulatory or by choice. When these other standards are inconsistent with IIA Standards, what should the audit department do?In addition to the Standards, some internal audit departments follow other standards in conducting their work, either because of regulatory requirements or by choice. When these other standards are inconsistent with IIA Standards, what should the audit department do?
Follow IIA Standards
Follow the other standards
Follow the standard that is least restrictive
Follow the standard that is most restrictive
Which of the following would be a violation of the standards of Domain II: Ethics and Professionalism?
An internal auditor was subpoenaed in a court case in which a joint venture partner claimed to have been defrauded by the internal auditor’s company. The internal auditor divulged confidential audit information to the court during testimony
During an audit, an internal auditor learned that the company was about to introduce a new product that would revolutionize the industry. Because of the probable success of the new product, the product manager suggested that the internal auditor buy additional stock in the company, which the internal auditor did
An internal auditor’s husband inherited 25,000 shares of company stock when his grandfather died. They have held the stock for more than two years
An internal auditor works weekends doing tax returns for a friend who owns a small CPA firm
