Question 1

Governmental financial related audits include determining all of the following except whether:

Accepted Answer

A)  the entity's internal controls over financial reporting is suitably designed and implemented to achieve the control objectives. 
B)  the entity's internal controls over safeguarding assets is suitably designed
And implemented to achieve the control objectives. 
C)  the financial statements are presented in accordance with GAAP. 
D)  financial information is presented in accordance with established or stated criteria. 
E)  the entity has adhered to specific financial compliance requirements. 
A)  the entity's internal controls over financial reporting is suitably designed and implemented to achieve the control objectives. 
B)  the entity's internal controls over safeguarding assets is suitably designed
And implemented to achieve the control objectives. 
C)  the financial statements are presented in accordance with GAAP. 
D)  financial information is presented in accordance with established or stated criteria. 
E)  the entity has adhered to specific financial compliance requirements.

Question 2

The general standards for the professional practice of internal auditing include the following:
-Internal auditors should report the results of their audit work.
_____

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

Governmental auditing includes all audits made by government audit agencies and all audits of governmental organizations.

Accepted Answer

A) True 
 B)False

Question 4

Generally accepted government auditing standards for financial audits are classified as:
-Communication with Audit Committees
_____

Accepted Answer

A) General, 
B) Field Work 
C) Reporting. 
A) General, 
B) Field Work 
C) Reporting.

Question 5

Generally accepted government auditing standards for financial audits are classified as:
-Report Distribution
_____

Accepted Answer

A) General, 
B) Field Work 
C) Reporting. 
A) General, 
B) Field Work 
C) Reporting.

Question 6

Like the AICPA Code of Professional Ethics, the IIA Code of Ethics is divided into both ethical principles and ethical rules.

Accepted Answer

A) True 
 B)False

Question 7

The most time consuming phase of an operational audit is the:

Accepted Answer

A)  select auditee phase. 
B)  plan audit phase. 
C)  perform audit phase. 
D)  report findings phase. 
E)  report follow-up phase. 
A)  select auditee phase. 
B)  plan audit phase. 
C)  perform audit phase. 
D)  report findings phase. 
E)  report follow-up phase.

Question 8

The U.S. GAO establishes audit standards for audits of all of the following except government:

Accepted Answer

A)  programs. 
B)  activities. 
C)  functions. 
D)  funds received by government organizations. 
E)  organizations. 
A)  programs. 
B)  activities. 
C)  functions. 
D)  funds received by government organizations. 
E)  organizations.

Question 9

The general standards for the professional practice of internal auditing include the following:
-Internal auditors should be objective in performing audits.
_____

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

Governmental economy and efficiency audits include determining all of the following except:

Accepted Answer

A)  whether the entity is acquiring, protecting and using its resources economically and efficiently. 
B)  the causes of inefficiencies. 
C)  whether the entity has complied with laws and regulations concerning matters of economy and efficiency. 
D)  the effectiveness of the organization's programs, activities, or functions. 
E)  the causes of uneconomical practices. 
A)  whether the entity is acquiring, protecting and using its resources economically and efficiently. 
B)  the causes of inefficiencies. 
C)  whether the entity has complied with laws and regulations concerning matters of economy and efficiency. 
D)  the effectiveness of the organization's programs, activities, or functions. 
E)  the causes of uneconomical practices.

Question 11

The general standards for the professional practice of internal auditing include the following:
-The internal auditing department should possess or should obtain the knowledge, skills, and disciplines needed to carry out its audit responsibilities.
_____

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 12

All AICPA standards (SASs and SSAEs) that apply to financial related audits are also incorporated by reference into GAGAS.

Accepted Answer

A) True 
 B)False

Question 13

The IIA's concept of independence is the same as the AICPA's concept of independence.

Accepted Answer

A) True 
 B)False

Question 14

Operational auditing is primarily concerned with a company's financial operations.

Accepted Answer

A) True 
 B)False

Question 15

The general standards for the professional practice of internal auditing include the following:
-The director of internal auditing should have a statement of purpose, authority, and responsibility for the internal auditing department.
_____

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 16

Which of the following is not a correct interpretation of the definition of internal auditing provided by the IIA?

Accepted Answer

A)  Employees of the organization may conduct internal auditing activities. 
B)  Internal auditing is a line activity within the organization. 
C)  All phases of the entity's operations fall within the scope of internal auditing. 
D)  The auditor's judgment has value when it is free of bias. 
E)  Internal auditing exists to aid or benefit the entire organization. 
A)  Employees of the organization may conduct internal auditing activities. 
B)  Internal auditing is a line activity within the organization. 
C)  All phases of the entity's operations fall within the scope of internal auditing. 
D)  The auditor's judgment has value when it is free of bias. 
E)  Internal auditing exists to aid or benefit the entire organization.

Question 17

Generally accepted government auditing standards for financial audits are classified as:
-Quality Control
_____

Accepted Answer

A) General, 
B) Field Work 
C) Reporting. 
A) General, 
B) Field Work 
C) Reporting.

Question 18

When a member of the AICPA performs an operational audit, the primary source of standards are the SASs.

Accepted Answer

A) True 
 B)False

Question 19

The phases of an operational audit include all of the following except:

Accepted Answer

A)  plan audit. 
B)  perform follow-up. 
C)  report findings to management. 
D)  accept client. 
E)  perform audit. 
A)  plan audit. 
B)  perform follow-up. 
C)  report findings to management. 
D)  accept client. 
E)  perform audit.

Question 20

Passage of the Foreign Corrupt Practices Act had a positive effect on the development of
internal auditing.

Accepted Answer

A) True 
 B)False

Exam 21: Internal, Operational, and

Governmental financial related audits include determining all of the following except whether:

The general standards for the professional practice of internal auditing include the following: -Internal auditors should report the results of their audit work. _____

Governmental auditing includes all audits made by government audit agencies and all audits of governmental organizations.

Generally accepted government auditing standards for financial audits are classified as: -Communication with Audit Committees _____

Generally accepted government auditing standards for financial audits are classified as: -Report Distribution _____

Like the AICPA Code of Professional Ethics, the IIA Code of Ethics is divided into both ethical principles and ethical rules.

The most time consuming phase of an operational audit is the:

The U.S. GAO establishes audit standards for audits of all of the following except government:

The general standards for the professional practice of internal auditing include the following: -Internal auditors should be objective in performing audits. _____

Governmental economy and efficiency audits include determining all of the following except:

The general standards for the professional practice of internal auditing include the following: -The internal auditing department should possess or should obtain the knowledge, skills, and disciplines needed to carry out its audit responsibilities. _____

All AICPA standards (SASs and SSAEs) that apply to financial related audits are also incorporated by reference into GAGAS.

The IIA's concept of independence is the same as the AICPA's concept of independence.

Operational auditing is primarily concerned with a company's financial operations.

The general standards for the professional practice of internal auditing include the following: -The director of internal auditing should have a statement of purpose, authority, and responsibility for the internal auditing department. _____

Which of the following is not a correct interpretation of the definition of internal auditing provided by the IIA?

Generally accepted government auditing standards for financial audits are classified as: -Quality Control _____

When a member of the AICPA performs an operational audit, the primary source of standards are the SASs.

The phases of an operational audit include all of the following except:

Passage of the Foreign Corrupt Practices Act had a positive effect on the development of internal auditing.

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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