Question 1

The two most important qualities for an operational auditor are:

Accepted Answer

A) personality and appearance. 
B) independence and competence. 
C) competence and technical training. 
D) academic background and sufficient experience. 
A) personality and appearance. 
B) independence and competence. 
C) competence and technical training. 
D) academic background and sufficient experience.

Question 2

The International Standards for the Professional Practice of Auditing list 7 performance standards.List three.

Accepted Answer

Managing the Internal Audit Ac

Question 3

The correct title of the Yellow Book is:

Accepted Answer

A) Government Auditing Standards. 
B) IIA Practice Standards. 
C) Statement of Responsibilities of Internal Auditing. 
D) Statement of Standards on Accounting and Review Services. 
A) Government Auditing Standards. 
B) IIA Practice Standards. 
C) Statement of Responsibilities of Internal Auditing. 
D) Statement of Standards on Accounting and Review Services.

Question 4

Integrity is one of the IIA's ethical principles.

Accepted Answer

A) True 
 B)False

Question 5

An audit designed to provide reasonable assurance of detecting material misstatements resulting from noncompliance with provisions of contracts or grant agreements that have a material and direct effect on the financial statements would be called a(n):

Accepted Answer

A) performance audit. 
B) management audit. 
C) operational audit. 
D) compliance audit. 
A) performance audit. 
B) management audit. 
C) operational audit. 
D) compliance audit.

Question 6

Auditors involved in planning, performing, or reporting on audits under GAGAS must complete ________ hours of continuing professional education in each two-year period.

Accepted Answer

A) 20 
B) 40 
C) 60 
D) 80 
A) 20 
B) 40 
C) 60 
D) 80

Question 7

A typical objective of an operational audit is to determine whether an entity's:

Accepted Answer

A) internal control is adequately operating as designed. 
B) financial statements present fairly the results of operations. 
C) specific operating units are functioning efficiently and effectively. 
D) operational information is in accordance with generally accepted government auditing standards. 
A) internal control is adequately operating as designed. 
B) financial statements present fairly the results of operations. 
C) specific operating units are functioning efficiently and effectively. 
D) operational information is in accordance with generally accepted government auditing standards.

Question 8

Which of the following groups could be involved in an operational audit?

Accepted Answer

A) CPA firms 
B) Internal auditors 
C) Government auditors 
D) All of the above could be involved. 
A) CPA firms 
B) Internal auditors 
C) Government auditors 
D) All of the above could be involved.

Question 9

________ 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 10

Operational audits may be performed by internal auditors and government auditors, but not by external auditors.

Accepted Answer

A) True 
 B)False

Question 11

The primary source of authoritative literature for doing government audits is the:

Accepted Answer

A) Purple Book. 
B) Yellow Book. 
C) Green Book. 
D) Red Book. 
A) Purple Book. 
B) Yellow Book. 
C) Green Book. 
D) Red Book.

Question 12

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) GAAS. 
B) GAGAS. 
C) GASA. 
D) SAS. 
A) GAAS. 
B) GAGAS. 
C) GASA. 
D) SAS.

Question 13

Which of the following can affect the independence of operational auditors?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 14

Internal auditors are expected to provide value to the organization through improved operational effectiveness.

Accepted Answer

A) True 
 B)False

Question 15

Extensive professional development is necessary for auditors doing governmental audits.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a difference between operational auditing and financial auditing?

Accepted Answer

A) Both must be performed by a CPA. 
B) Operational audit reports are usually of a restricted distribution while financial audit reports are widely distributed. 
C) Operational audits often cover non-financial issues while financial audits do not. 
D) None of the above is a difference. 
A) Both must be performed by a CPA. 
B) Operational audit reports are usually of a restricted distribution while financial audit reports are widely distributed. 
C) Operational audits often cover non-financial issues while financial audits do not. 
D) None of the above is a difference.

Question 17

Because they spend all their time within one company, internal auditors have much greater knowledge about the company's operations and internal controls then external auditors

Accepted Answer

A) True 
 B)False

Question 18

What distinguishes internal control evaluation and testing for financial and operational auditing?

Accepted Answer

A) Purpose of the work 
B) Scope of the work 
C) Both A and B 
D) Neither A nor B 
A) Purpose of the work 
B) Scope of the work 
C) Both A and B 
D) Neither A nor B

Question 19

What are three similarities between internal and external auditors?

Accepted Answer

•Both must be competent as auditors and

Question 20

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

Exam 26: Internal and Governmental Financial Auditing and Operational Auditing

The two most important qualities for an operational auditor are:

The International Standards for the Professional Practice of Auditing list 7 performance standards.List three.

The correct title of the Yellow Book is:

Integrity is one of the IIA's ethical principles.

An audit designed to provide reasonable assurance of detecting material misstatements resulting from noncompliance with provisions of contracts or grant agreements that have a material and direct effect on the financial statements would be called a(n):

Auditors involved in planning, performing, or reporting on audits under GAGAS must complete ________ hours of continuing professional education in each two-year period.

A typical objective of an operational audit is to determine whether an entity's:

Which of the following groups could be involved in an operational audit?

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

Operational audits may be performed by internal auditors and government auditors, but not by external auditors.

The primary source of authoritative literature for doing government audits is the:

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

Which of the following can affect the independence of operational auditors?

Internal auditors are expected to provide value to the organization through improved operational effectiveness.

Extensive professional development is necessary for auditors doing governmental audits.

Which of the following is not a difference between operational auditing and financial auditing?

Because they spend all their time within one company, internal auditors have much greater knowledge about the company's operations and internal controls then external auditors

What distinguishes internal control evaluation and testing for financial and operational auditing?

What are three similarities between internal and external auditors?

The international standards for the professional practice of internal auditing include which two categories of standards?

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

Internal Control, Control Risk, and Section 404 Audits

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

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, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

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

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