Exam 26: Internal and Governmental Financial Auditing and Operational Auditing

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

Effectiveness refers to the degree to which costs are reduced without reducing efficiency.

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

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):

Which of the following best describes an audit that emphasizes how efficiently and effectively functions interact?

Governmental Auditing Standards recognize that because of public accountability over governmental activities the acceptable tolerable misstatement as compared to commercial businesses may be:

When performing an operational audit,the internal audit team must first determine that:

Independence is a fundamental ethical principle for internal auditors.

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

The correct title of the Yellow Book is:

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

Match seven of the terms (a-o)with the descriptions/definitions provided below (1-7): a.Compliance audit b.Economy and efficiency audit c.Effectiveness d.Efficiency e.Functional audit f.Government Auditing Standards g.Government audit h.Institute of Internal Auditors i.Operational auditing j.Organizational audit k.Program audit l.Single Audit Act m.Special assignment n.IIA Practice Standards o.Statements on Internal Auditing Standards ________ 1.The official title of the Yellow Book. ________ 2.A management request for an operational audit for a specific purpose,such as investigating the possibility of fraud in a division or making recommendations for reducing the cost of a manufactured product. ________ 3.A government audit to determine whether an entity is acquiring,protecting,and using its resources economically and efficiently and whether the entity has complied with laws and regulations concerning such matters. ________ 4.The degree to which the organization's objectives are accomplished. ________ 5.The review of an organization for efficiency and effectiveness. ________ 6.Federal legislation that provides for a single coordinated audit to satisfy the audit requirements of all federal funding agencies. ________ 7.Statements issued by the Internal Auditing Standards Board of the IIA to provide authoritative interpretation of the IIA Practice Standards.

External auditors would consider internal auditors effective if they are:

When a state or local government agency receives federal funds,it is subject to the audit requirements of:

Benchmarking is one source of evaluation criteria for completing an operational audit.

Statements on Internal Auditing Standards are issued by the:

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

The Internal Auditing Standards Board issues Statements on Internal Auditing Standards.

Internal auditors are responsible to:

Which of the following statements regarding types of operational audits is likely incorrect?