Question 1

Internal auditor independence would not be impaired if the auditor:

Accepted Answer

A)  made management decisions relating to financial activities. 
B)  assumes operating responsibilities. 
C)  reports directly to the controller. 
D)  reports directly to the treasurer. 
E)  makes recommendations based on audit findings. 
A)  made management decisions relating to financial activities. 
B)  assumes operating responsibilities. 
C)  reports directly to the controller. 
D)  reports directly to the treasurer. 
E)  makes recommendations based on audit findings.

Question 2

The general standards for the professional practice of internal auditing include the following:
-The director of internal auditing should provide written policies and procedures to guide the audit staff.
_____

Accepted Answer

A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department. 
A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department.

Question 3

Like financial statement audits, an operational audit ends with a report on the findings.

Accepted Answer

A) True 
 B)False

Question 4

The general standards for the professional practice of internal auditing include the following:
-Internal auditors should maintain their technical competence through continuing education.
_____

Accepted Answer

A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department. 
A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department.

Question 5

Certified internal auditors are licensed by the states in which their firms are headquartered.

Accepted Answer

A) True 
 B)False

Question 6

GASAS, like GAAS, requires auditors to consider the risk of fraud.

Accepted Answer

A) True 
 B)False

Question 7

Internal auditor's primary reporting responsibility is to third parties.

Accepted Answer

A) True 
 B)False

Question 8

The general standards for the professional practice of internal auditing include the following:
-Internal auditors must comply with professional standards of conduct.
_____

Accepted Answer

A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department. 
A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department.

Question 9

The general standards for the professional practice of internal auditing include the following:
-Internal auditors should review the means of safeguarding assets and, as appropriate, verify the existence of such assets.
_____

Accepted Answer

A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department. 
A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department.

Question 10

List the four objectives of the Single Audit Act.

Accepted Answer

1.Improve the financial management of st

Question 11

Complete the chart below by labeling the boxes. Explain the major differences between the phases of the financial statement audit and the operational audit.

Accepted Answer

@#IMG-DLM& There are more phases in an operational

Question 12

GAGAS include the AICPA generally accepted auditing standards for field work and reporting.

Accepted Answer

A) True 
 B)False

Question 13

As indicated in the second additional reporting standard, GAGAS requires auditors to report deficiencies in internal control that they consider to be reportable conditions.

Accepted Answer

A) True 
 B)False

Question 14

AICPA standards recognize an operational audit as a form of:

Accepted Answer

A)  attestation services. 
B)  management consulting services. 
C)  accounting services. 
D)  audit services. 
E)  review services. 
A)  attestation services. 
B)  management consulting services. 
C)  accounting services. 
D)  audit services. 
E)  review services.

Question 15

If the operational audit report is long and detailed, the report may begin with an executive summary of the findings and recommendations.

Accepted Answer

A) True 
 B)False

Question 16

The IIA Code of Ethics Rules of Conduct regarding integrity include all of the following except:

Accepted Answer

A)  shall perform their work with honesty, diligence, and responsibility. 
B)  shall observe the law and make disclosures expected by the law and the profession. 
C)  shall not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organization. 
D)  shall be licensed by a governmental agency. 
E)  shall respect and contribute to the legitimate and ethical objectives of the organization. 
A)  shall perform their work with honesty, diligence, and responsibility. 
B)  shall observe the law and make disclosures expected by the law and the profession. 
C)  shall not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organization. 
D)  shall be licensed by a governmental agency. 
E)  shall respect and contribute to the legitimate and ethical objectives of the organization.

Question 17

A general standard that is unique to governmental audits is:

Accepted Answer

A)  qualifications. 
B)  independence. 
C)  quality control. 
D)  due professional care. 
E)  planning. 
A)  qualifications. 
B)  independence. 
C)  quality control. 
D)  due professional care. 
E)  planning.

Question 18

In selecting an auditee for operational auditing, an understanding of the potential auditees is obtained by all of the following except:

Accepted Answer

A)  applying analytical procedures to quantify trends and unusual relationships. 
B)  reviewing background file data on each auditee. 
C)  touring the auditee's facilities to ascertain how it accomplishes its objectives. 
D)  interviewing the manager of the activity about specific problem areas. 
E)  conducting mini audit probes to confirm or clarify the auditor's understanding of potential problems. 
A)  applying analytical procedures to quantify trends and unusual relationships. 
B)  reviewing background file data on each auditee. 
C)  touring the auditee's facilities to ascertain how it accomplishes its objectives. 
D)  interviewing the manager of the activity about specific problem areas. 
E)  conducting mini audit probes to confirm or clarify the auditor's understanding of potential problems.

Question 19

GAGAS requires auditors to report deficiencies in internal control that they consider to be reportable conditions. Examples of such reportable conditions include all of the following except:

Accepted Answer

A)  absence of appropriate segregation of duties consistent with appropriate control objectives. 
B)  evidence of failure to safeguard assets from loss, damage, or misappropriation. 
C)  absence of a sufficient level of control consciousness within the organization. 
D)  failure to follow-up and correct previously identified deficiencies in internal control. 
E)  absence of an efficient use of audit resources. 
A)  absence of appropriate segregation of duties consistent with appropriate control objectives. 
B)  evidence of failure to safeguard assets from loss, damage, or misappropriation. 
C)  absence of a sufficient level of control consciousness within the organization. 
D)  failure to follow-up and correct previously identified deficiencies in internal control. 
E)  absence of an efficient use of audit resources.

Question 20

The general standards for the professional practice of internal auditing include the following:
-Internal auditors should collect, analyze, interpret, and document information to support audit results.
_____

Accepted Answer

A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department. 
A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department.

Exam 21: Internal, Operational, and

Internal auditor independence would not be impaired if the auditor:

The general standards for the professional practice of internal auditing include the following: -The director of internal auditing should provide written policies and procedures to guide the audit staff. _____

Like financial statement audits, an operational audit ends with a report on the findings.

The general standards for the professional practice of internal auditing include the following: -Internal auditors should maintain their technical competence through continuing education. _____

Certified internal auditors are licensed by the states in which their firms are headquartered.

GASAS, like GAAS, requires auditors to consider the risk of fraud.

Internal auditor's primary reporting responsibility is to third parties.

The general standards for the professional practice of internal auditing include the following: -Internal auditors must comply with professional standards of conduct. _____

The general standards for the professional practice of internal auditing include the following: -Internal auditors should review the means of safeguarding assets and, as appropriate, verify the existence of such assets. _____

List the four objectives of the Single Audit Act.

Complete the chart below by labeling the boxes. Explain the major differences between the phases of the financial statement audit and the operational audit.

GAGAS include the AICPA generally accepted auditing standards for field work and reporting.

As indicated in the second additional reporting standard, GAGAS requires auditors to report deficiencies in internal control that they consider to be reportable conditions.

AICPA standards recognize an operational audit as a form of:

If the operational audit report is long and detailed, the report may begin with an executive summary of the findings and recommendations.

The IIA Code of Ethics Rules of Conduct regarding integrity include all of the following except:

A general standard that is unique to governmental audits is:

In selecting an auditee for operational auditing, an understanding of the potential auditees is obtained by all of the following except:

GAGAS requires auditors to report deficiencies in internal control that they consider to be reportable conditions. Examples of such reportable conditions include all of the following except:

The general standards for the professional practice of internal auditing include the following: -Internal auditors should collect, analyze, interpret, and document information to support audit results. _____

Auditing and the Public Accounting

Financial Statement Audits and

Professional Ethics

Auditors Legal Liability

Overview of the Audit Process

Audit Evidence, Audit Objectives,

Accepting the Engagement and

Materiality Decisions and Performing Analytical Procedures

Audit Risk, Including the Risk of Fraud

Understanding Internal Controls

Audit Procedures in Response to Assessed Risks: Tests of Controls

Audit Procedures in Response to Assessed Risks: Substantive Tests

Audit Sampling in Substantive Tests

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Auditing the Production and

Auditing the Investing and

Auditing Investments and

Completing the Audit and Postaudit

Attest and Assurance Services, and Related Reports

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