Question 1

Which of the following is not a similarity between external and internal auditors?

Accepted Answer

A) Both must be independent of the company. 
B) Both must be competent. 
C) Both follow a similar methodology in performing their audits. 
D) Both consider risk and materiality deciding the extent of their tests and evaluating results. 
A) Both must be independent of the company. 
B) Both must be competent. 
C) Both follow a similar methodology in performing their audits. 
D) Both consider risk and materiality deciding the extent of their tests and evaluating results.

Question 2

Which of the following is most correct regarding external auditors use of internal auditors directly on the audit engagement?

Accepted Answer

A) discourage 
B) prohibit 
C) require 
D) permit 
A) discourage 
B) prohibit 
C) require 
D) permit

Question 3

One disadvantage of functional auditing is the failure to evaluate interrelated functions.

Accepted Answer

A) True 
 B)False

Question 4

Internal auditors are expected to add value to the organization through improved operational effectiveness.In addition,their responsibilities include all the following except

Accepted Answer

A) reviewing the reliability and integrity of information. 
B) ensuring compliance with the company's accounting policies. 
C) verifying accounting information for external users. 
D) ensuring compliance with applicable governmental regulations. 
A) reviewing the reliability and integrity of information. 
B) ensuring compliance with the company's accounting policies. 
C) verifying accounting information for external users. 
D) ensuring compliance with applicable governmental regulations.

Question 5

Internal auditors are responsible to

Accepted Answer

A) the board of directors. 
B) management. 
C) both A and B. 
D) neither A nor B. 
A) the board of directors. 
B) management. 
C) both A and B. 
D) neither A nor B.

Question 6

An audit conducted in accordance with the Yellow Book must include an audit report that states the audit was performed in accordance with

Accepted Answer

A) Generally Accepted Auditing Standards (GAAS). 
B) Generally Accepted Government Auditing Standards (GAGAS). 
C) Generally Accepted Standards on Auditing (GAS
A) . 
D) Statements on Auditing Standards (SAS). 
A) Generally Accepted Auditing Standards (GAAS). 
B) Generally Accepted Government Auditing Standards (GAGAS). 
C) Generally Accepted Standards on Auditing (GAS
A) . 
D) Statements on Auditing Standards (SAS).

Question 7

________ is the degree to which the organization's objectives are accomplished.

Accepted Answer

A) Effectiveness 
B) Efficiency 
C) Goal optimization 
D) Performance 
A) Effectiveness 
B) Efficiency 
C) Goal optimization 
D) Performance

Question 8

Current professional auditing standards prohibit external auditors from using internal auditors for direct assistance on external audits.

Accepted Answer

A) True 
 B)False

Question 9

Discuss each of the three phases of an operational audit.

Accepted Answer

•Planning.In the planning phase,the audi

Question 10

The Institute of Internal Auditors has established Ethical Principles for its members.List each of the principles.

Accepted Answer

The Institute of Internal Audi

Question 11

The auditing standards of the Yellow Book are consistent with the ten generally accepted auditing standards of the AICPA.There are,however,important additions/modifications in the Yellow Book.For example,the Yellow Book recognizes that materiality and risk are lower due to the nature of the government enterprise.Discuss the other additions/modifications.

Accepted Answer

•Quality control.CPA firms and other org

Question 12

Under the International Standards for the Professional Practice of Internal Auditing,the performance standards deal with the education requirements of the internal auditor.

Accepted Answer

A) True 
 B)False

Question 13

Effective internal controls are designed to help organizations achieve which of the following objectives?

Accepted Answer

A) reliability of financial reporting 
B) efficiency and effectiveness of operations 
C) compliance with applicable laws and regulations 
D) all of the above 
A) reliability of financial reporting 
B) efficiency and effectiveness of operations 
C) compliance with applicable laws and regulations 
D) all of the above

Question 14

The International Standards for the Professional Practice of Internal Auditing include which two categories of standards?

Accepted Answer

A) attribute and performance 
B) competency and professional skepticism 
C) performance and integrity 
D) ethics and rules of conduct 
A) attribute and performance 
B) competency and professional skepticism 
C) performance and integrity 
D) ethics and rules of conduct

Question 15

Which of the following is not one of the three phases in an operational audit?

Accepted Answer

A) planning 
B) training and supervising employees 
C) evidence accumulation and evaluation 
D) reporting and follow-up 
A) planning 
B) training and supervising employees 
C) evidence accumulation and evaluation 
D) reporting and follow-up

Which of the following is not a similarity between external and internal auditors?

Which of the following is most correct regarding external auditors use of internal auditors directly on the audit engagement?

One disadvantage of functional auditing is the failure to evaluate interrelated functions.

Internal auditors are expected to add value to the organization through improved operational effectiveness.In addition,their responsibilities include all the following except

Internal auditors are responsible to

An audit conducted in accordance with the Yellow Book must include an audit report that states the audit was performed in accordance with

________ is the degree to which the organization's objectives are accomplished.

Current professional auditing standards prohibit external auditors from using internal auditors for direct assistance on external audits.

Discuss each of the three phases of an operational audit.

The Institute of Internal Auditors has established Ethical Principles for its members.List each of the principles.

Under the International Standards for the Professional Practice of Internal Auditing,the performance standards deal with the education requirements of the internal auditor.

Effective internal controls are designed to help organizations achieve which of the following objectives?

The International Standards for the Professional Practice of Internal Auditing include which two categories of standards?

Which of the following is not one of the three phases in an operational audit?

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Filters

Exam 26: Internal and Governmental Financial Auditing and Operational Auditing

Which of the following is not a similarity between external and internal auditors?

Which of the following is most correct regarding external auditors use of internal auditors directly on the audit engagement?

One disadvantage of functional auditing is the failure to evaluate interrelated functions.

Internal auditors are expected to add value to the organization through improved operational effectiveness.In addition,their responsibilities include all the following except

Internal auditors are responsible to

An audit conducted in accordance with the Yellow Book must include an audit report that states the audit was performed in accordance with

________ is the degree to which the organization's objectives are accomplished.

Current professional auditing standards prohibit external auditors from using internal auditors for direct assistance on external audits.

Discuss each of the three phases of an operational audit.

The Institute of Internal Auditors has established Ethical Principles for its members.List each of the principles.

Under the International Standards for the Professional Practice of Internal Auditing,the performance standards deal with the education requirements of the internal auditor.

Effective internal controls are designed to help organizations achieve which of the following objectives?

The International Standards for the Professional Practice of Internal Auditing include which two categories of standards?

Which of the following is not one of the three phases in an operational audit?

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Filters