WorksheetsPractical Internal Audit - IFA - MBA
Total questions: 20
Worksheet time: 48mins
What are some common risk assessment techniques used in internal auditing base on COSO business analysis framework?
Control environment, Risk Assessment, Control Activities, Information & Communication, Monitoring Activities
Risk management, risk mitigation, risk monitoring
Risk prevention, risk detection, risk response
Risk assessment, risk control, risk reporting
Explain the importance of internal control systems in the audit process.
Internal control systems hinder the audit process
Internal control systems are only relevant for small businesses
Internal control systems are important in the audit process to assess risks, design audit procedures, and ensure reliability of financial reporting.
Internal control systems are unnecessary in the audit process
Describe the steps involved in the audit planning process.
Conducting a detailed financial analysis
Understanding the client's business and industry, assessing risks and materiality, developing an audit strategy, setting audit objectives, planning the audit approach, determining the audit scope, assigning audit team members, and developing a detailed audit plan.
Skipping the risk assessment step
Reviewing previous audit reports
What methods can be used to detect fraud during an audit?
Conducting data analytics, document reviews, verifying transactions, surprise audits and make sure the control are proper adequate base on maker/checker mechanism.
Avoiding surprise audits
Ignoring financial records
Relying solely on verbal assurances
What are some key compliance auditing standards that auditors need to follow?
IFRS guidelines, ISO 9001 standards, SEC regulations
COSO framework, PCAOB standards, AICPA auditing standards
How should audit findings be reported to stakeholders for maximum impact?
Send audit findings via carrier pigeon
Report audit findings to stakeholders in a clear, concise, and visually engaging manner, tailored to their level of understanding and make sure mentioned responsible person and periods to get it done.
Deliver audit findings through a puppet show
Present audit findings using interpretive dance
Why is risk assessment an essential part of the internal audit process?
Risk assessment is essential in the internal audit process to identify and prioritize potential risks that could impact the organization's objectives.
Risk assessment is not necessary for internal audit
Risk assessment only adds unnecessary complexity to the audit process
Internal audit can be done without considering potential risks
How do internal control systems help in preventing and detecting errors and fraud?
Internal control systems help by promoting fraudulent behavior
Internal control systems help prevent and detect errors and fraud by establishing procedures, segregating duties, conducting audits, implementing checks and balances, and promoting ethical behavior.
Internal control systems are not effective in preventing errors and fraud
Internal control systems hinder the detection of errors and fraud
What factors should be considered when planning an audit engagement?
Number of office supplies, favorite food of the auditor, distance from the moon
Length of the audit report, shoe size of the auditor, political climate of the country
Size of the audit team, weather conditions, color of the audit report
Nature and complexity of the entity, risks, materiality, resources availability, and timeline
Discuss the role of data analytics in fraud detection during audits.
Data analytics has no impact on fraud detection during audits
Fraud detection can be effectively done without data analytics
Data analytics only complicates fraud detection processes
Data analytics helps in identifying patterns, anomalies, and suspicious activities to detect potential fraud during audits such as ( Details Testing, Substantive Detail Testing, and Analytical Review Procedure)
What are the consequences of non-compliance with auditing standards and also in compliance with banking law and regulation, GDT Law ?
Increased productivity, improved efficiency, higher profits
Legal penalties, fines, loss of reputation, decreased investor confidence, potential lawsuits
How can auditors ensure the accuracy and reliability of their audit findings?
By ignoring auditing standards and procedures
By conducting thorough testing, obtaining sufficient evidence, maintaining independence and objectivity, following auditing standards and procedures, and documenting their work.
By not documenting their work
By skipping the testing phase and relying solely on intuition
What are the key components of a risk assessment matrix?
likelihood, consequence, risk level ( Low Risk / Moderate / High Risk )
probability, impact, risk score
severity, likelihood, risk level
frequency, magnitude, risk assessment
What are the main elements of audit Objective ?
Materiality is the concept of auditing only large corporations.
Materiality is the process of auditing raw materials used in production.
COVERCAP
Materiality refers to the physical characteristics of audit documents.
What are the Nature and Extent of Testing when Validating Controls ?
Reperformance, Examination, Observation, and Inquiry
Reperformance, Examination,
Examination, Observation,
Observation, and Inquiry
Please describe the manual applied control based on audit technique interim of Frequency of control and Number of Items to test ( Daily, weekly, Monthly, Quarterly, and Annually)
In term of financial assertion, Please descript the step of sustentive Analytical Procedure ( 4 Steps ) and also Example ?
How many type of details testing do auditor need to perform and what are they?
(a)
How many type of Test of Details include procedure ?
1.Confirmation
2.Physical examination
3.Cut-off testing
4.Reconciliation
1.Confirmation
2.Physical examination
3.Cut-off testing
4.Observation
5.Inquiry
6.Examination
7.Re-computation
1.Confirmation
2.Physical examination
3.Cut-off testing
4.Tracing Vouching
5.Casting/recalculation
All above
Pls mentioned Detail of Audit Finding with Management Respond? and also example of one case that you had find out base on your coaching note / critical mater.?
