Question 1

Internal audit reports are usually considered " ____________________ " until a _________________________ is performed.

Accepted Answer

The answer of Internal audit reports are usually considered "...

Question 2

Which of the following is usually not part of an internal audit department's audit charter?

Accepted Answer

A)  A commitment from management to ensure the independence of the internal audit department. 
B)  A definition of the scope of the audit department's activities. 
C)  The organizational structure of the internal audit department. 
D)  The reporting requirements of the internal audit department. 
A)  A commitment from management to ensure the independence of the internal audit department. 
B)  A definition of the scope of the audit department's activities. 
C)  The organizational structure of the internal audit department. 
D)  The reporting requirements of the internal audit department.

Question 3

The proper organizational role of internal auditing is to

Accepted Answer

A)  Assist external auditors in reducing external audit fees. 
B)  Perform studies to assist in attaining more efficient operations. 
C)  Serve as an investigative arm of senior management and the board of directors. 
D)  Serve as an independent, objective assurance and consulting activity that adds value to the organization. 
A)  Assist external auditors in reducing external audit fees. 
B)  Perform studies to assist in attaining more efficient operations. 
C)  Serve as an investigative arm of senior management and the board of directors. 
D)  Serve as an independent, objective assurance and consulting activity that adds value to the organization.

Question 4

A GAO audit report entitled Aviation Safety: Safer Skies Initiative Has Taken Initial Steps to Reduce Accident Rates by 2007 is most likely a report based on work the auditors performed during a

Accepted Answer

A)  Financial statement audit. 
B)  Compliance audit of air safety regulations. 
C)  Performance audit of program goal achievement. 
D)  Performance audit of air control regulation effectiveness. 
A)  Financial statement audit. 
B)  Compliance audit of air safety regulations. 
C)  Performance audit of program goal achievement. 
D)  Performance audit of air control regulation effectiveness.

Question 5

The Single Audit Act of 1984 requires an annual audit of all governments,agencies,and nonprofit organizations that

Accepted Answer

A)  Receive $300,000 or more federal funds. 
B)  Receive $500,000 or more federal funds. 
C)  Spend $300,000 or more federal funds. 
D)  Spend $500,000 or more federal funds. 
A)  Receive $300,000 or more federal funds. 
B)  Receive $500,000 or more federal funds. 
C)  Spend $300,000 or more federal funds. 
D)  Spend $500,000 or more federal funds.

Question 6

The GAO standards go beyond the AICPA's GAAS in a number of respects.

Accepted Answer

A) True 
 B)False

Question 7

Under the Single Audit Act of 1984,only CPAs and GAO auditors can conduct "single audits."

Accepted Answer

A) True 
 B)False

Question 8

Once a fraud is discovered,the focus of the audit changes to an investigation with the primary objective of ___________________________________________________.

Accepted Answer

building a

Question 9

The Single Audit Act requires the auditor to report on ____________________ ___________________,___________________________,and ___________________.

Accepted Answer

financial statements

Question 10

Which of the following is the least important consideration for a governmental auditor who needs to be objective when auditing and reporting on an agency's achievement of program goals?

Accepted Answer

A)  Measure the actual output results of agency activities. 
B)  Compare the agency's actual output results to quantitative goal standards. 
C)  Perform a comprehensive review of management controls. 
D)  Determine quantitative standards that describe goals the agency was supposed to achieve. 
A)  Measure the actual output results of agency activities. 
B)  Compare the agency's actual output results to quantitative goal standards. 
C)  Perform a comprehensive review of management controls. 
D)  Determine quantitative standards that describe goals the agency was supposed to achieve.

Question 11

Fraud examination requires the individual to have expertise in ____________________ and ______________________________.

Accepted Answer

audit; cri

Question 12

Although internal auditors are associated with their employers in the eyes of the public,they seek ____________________ and ____________________ independence.

Accepted Answer

operationa

Question 13

Your organization has selected you to develop an internal audit activity.Your approach will most likely be to hire

Accepted Answer

A)  Internal auditors each of whom possess the skills required to handle all engagements. 
B)  Inexperienced personnel and train them the way the organization wants them trained. 
C)  Degreed accountants because most internal audit work is accounting related. 
D)  Internal auditors who collectively have the knowledge and skills needed to perform the responsibilities of the internal audit activities. 
A)  Internal auditors each of whom possess the skills required to handle all engagements. 
B)  Inexperienced personnel and train them the way the organization wants them trained. 
C)  Degreed accountants because most internal audit work is accounting related. 
D)  Internal auditors who collectively have the knowledge and skills needed to perform the responsibilities of the internal audit activities.

Question 14

Forensic accounting is a term used to describe work that is performed on companies that are no longer in business.

Accepted Answer

A) True 
 B)False

Question 15

Internal auditors perform operational audits but do not perform financial audits.

Accepted Answer

A) True 
 B)False

Question 16

An expert in detecting and investigating fraud is a certified fraud investigator.

Accepted Answer

A) True 
 B)False

Question 17

Senior management has ordered a compliance audit of the organization's employee benefits package.Which of the following do both the chief audit executive and senior management consider a primary engagement objective?

Accepted Answer

A)  The level of the organizational contributions is adequate to meet the program's demands. 
B)  Individual programs are operating in accordance with contractual requirements and government regulations. 
C)  Participation levels support continuation of individual programs. 
D)  Benefits payments, when appropriate, are accurate and timely. 
A)  The level of the organizational contributions is adequate to meet the program's demands. 
B)  Individual programs are operating in accordance with contractual requirements and government regulations. 
C)  Participation levels support continuation of individual programs. 
D)  Benefits payments, when appropriate, are accurate and timely.

Question 18

Which of the following would be considered the most significant problem for internal audit if the chief audit executive reported to the controller?

Accepted Answer

A)  The controller would amend the audit schedule so more audit time was spent on accounting issues. 
B)  The controller may have no training as an internal auditor. 
C)  During times when the budget needs to be cut, internal audit would likely be the first to lose funding. 
D)  The controller can control the scope of audits and censor audit reports before being sent to management and the audit committee. 
A)  The controller would amend the audit schedule so more audit time was spent on accounting issues. 
B)  The controller may have no training as an internal auditor. 
C)  During times when the budget needs to be cut, internal audit would likely be the first to lose funding. 
D)  The controller can control the scope of audits and censor audit reports before being sent to management and the audit committee.

Question 19

Having an audit charter is important for internal audit departments.Which of the following items is generally not a reason to have an audit charter?

Accepted Answer

A)  It provides a commitment from management to support the internal audit department's activities. 
B)  It defines the skills and competencies required by the internal audit department. 
C)  It defines the department's authority and responsibility. 
D)  It defines the reporting requirements for internal audit departments. 
A)  It provides a commitment from management to support the internal audit department's activities. 
B)  It defines the skills and competencies required by the internal audit department. 
C)  It defines the department's authority and responsibility. 
D)  It defines the reporting requirements for internal audit departments.

Question 20

After performing work in a compliance attestation engagement and finding that a governmental agency's managers failed to install and perform even the most elementary controls to ensure compliance with laws and regulations and,in fact,committed numerous violations,an auditor most likely would

Accepted Answer

A)  Write an adverse report on actual compliance. 
B)  Write an unqualified report on actual compliance. 
C)  Write a report modified to disclose particular noncompliance events (specific violations of laws and regulations). 
D)  Write a disclaimer of opinion related to knowledge of noncompliance. 
A)  Write an adverse report on actual compliance. 
B)  Write an unqualified report on actual compliance. 
C)  Write a report modified to disclose particular noncompliance events (specific violations of laws and regulations). 
D)  Write a disclaimer of opinion related to knowledge of noncompliance.

Internal audit reports are usually considered " " until a _____ is performed.

Which of the following is usually not part of an internal audit department's audit charter?

The proper organizational role of internal auditing is to

A GAO audit report entitled Aviation Safety: Safer Skies Initiative Has Taken Initial Steps to Reduce Accident Rates by 2007 is most likely a report based on work the auditors performed during a

The Single Audit Act of 1984 requires an annual audit of all governments,agencies,and nonprofit organizations that

The GAO standards go beyond the AICPA's GAAS in a number of respects.

Under the Single Audit Act of 1984,only CPAs and GAO auditors can conduct "single audits."

Once a fraud is discovered,the focus of the audit changes to an investigation with the primary objective of ___________________________________________________.

The Single Audit Act requires the auditor to report on __________ _,_,and _.

Which of the following is the least important consideration for a governmental auditor who needs to be objective when auditing and reporting on an agency's achievement of program goals?

Fraud examination requires the individual to have expertise in and __________.

Although internal auditors are associated with their employers in the eyes of the public,they seek and independence.

Your organization has selected you to develop an internal audit activity.Your approach will most likely be to hire

Forensic accounting is a term used to describe work that is performed on companies that are no longer in business.

Internal auditors perform operational audits but do not perform financial audits.

An expert in detecting and investigating fraud is a certified fraud investigator.

Senior management has ordered a compliance audit of the organization's employee benefits package.Which of the following do both the chief audit executive and senior management consider a primary engagement objective?

Which of the following would be considered the most significant problem for internal audit if the chief audit executive reported to the controller?

Having an audit charter is important for internal audit departments.Which of the following items is generally not a reason to have an audit charter?

After performing work in a compliance attestation engagement and finding that a governmental agency's managers failed to install and perform even the most elementary controls to ensure compliance with laws and regulations and,in fact,committed numerous violations,an auditor most likely would

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Exam 16: Internal Governmental and Fraud Audits

Internal audit reports are usually considered " ____________________ " until a _________________________ is performed.

Which of the following is usually not part of an internal audit department's audit charter?

The proper organizational role of internal auditing is to

A GAO audit report entitled Aviation Safety: Safer Skies Initiative Has Taken Initial Steps to Reduce Accident Rates by 2007 is most likely a report based on work the auditors performed during a

The Single Audit Act of 1984 requires an annual audit of all governments,agencies,and nonprofit organizations that

The GAO standards go beyond the AICPA's GAAS in a number of respects.

Under the Single Audit Act of 1984,only CPAs and GAO auditors can conduct "single audits."

Once a fraud is discovered,the focus of the audit changes to an investigation with the primary objective of ___________________________________________________.

The Single Audit Act requires the auditor to report on ____________________ ___________________,___________________________,and ___________________.

Which of the following is the least important consideration for a governmental auditor who needs to be objective when auditing and reporting on an agency's achievement of program goals?

Fraud examination requires the individual to have expertise in ____________________ and ______________________________.

Although internal auditors are associated with their employers in the eyes of the public,they seek ____________________ and ____________________ independence.

Your organization has selected you to develop an internal audit activity.Your approach will most likely be to hire

Forensic accounting is a term used to describe work that is performed on companies that are no longer in business.

Internal auditors perform operational audits but do not perform financial audits.

An expert in detecting and investigating fraud is a certified fraud investigator.

Senior management has ordered a compliance audit of the organization's employee benefits package.Which of the following do both the chief audit executive and senior management consider a primary engagement objective?

Which of the following would be considered the most significant problem for internal audit if the chief audit executive reported to the controller?

Having an audit charter is important for internal audit departments.Which of the following items is generally not a reason to have an audit charter?

After performing work in a compliance attestation engagement and finding that a governmental agency's managers failed to install and perform even the most elementary controls to ensure compliance with laws and regulations and,in fact,committed numerous violations,an auditor most likely would

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Internal audit reports are usually considered " " until a _____ is performed.

The Single Audit Act requires the auditor to report on __________ _,_,and _.

Fraud examination requires the individual to have expertise in and __________.

Although internal auditors are associated with their employers in the eyes of the public,they seek and independence.