Question 1

What is the first step in fieldwork called?

Accepted Answer

A)  Audit fieldwork 
B)  Information gathering 
C)  Process walkthrough 
D)  Design effectiveness

Question 2

The plans of the audit team, including the audit planning memo, are presented during what event?

Accepted Answer

A)  The audit wrap-up meeting 
B)  The audit kickoff meeting 
C)  The audit fieldwork 
D)  The audit follow-up meeting

Question 3

The ________ gathered about the business and internal controls during the audit engagement must be communicated so that management can implement suggestions and address shortcomings.

Accepted Answer

A)  fieldwork 
B)  valuable information 
C)  reporting 
D)  planning

Question 4

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the management action plan is delivered?

Accepted Answer

A)  Planning 
B)  Fieldwork 
C)  Wrap-up 
D)  Reporting

Question 5

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the documentation request is delivered?

Accepted Answer

A)  Planning 
B)  Fieldwork 
C)  Wrap-up 
D)  Reporting

Question 6

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the preliminary observations are delivered?

Accepted Answer

A)  Planning 
B)  Fieldwork 
C)  Wrap-up 
D)  Reporting

Question 7

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the audit canvas is delivered?

Accepted Answer

A)  Planning 
B)  Fieldwork 
C)  Wrap-up 
D)  Reporting

Question 8

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the updated management action plan is delivered?

Accepted Answer

A)  Follow-up 
B)  Fieldwork 
C)  Wrap-up 
D)  Reporting

Question 9

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the sample selection is delivered?

Accepted Answer

A)  Planning 
B)  Fieldwork 
C)  Wrap-up 
D)  Reporting

Question 10

The five stages of an audit include important audit activities and deliverables.
 What is Stage A?

Accepted Answer

A)  Planning 
B)  Fieldwork 
C)  Wrap-up 
D)  Reporting

Question 11

Once the first draft of the audit report is complete, the audit team meets with the auditee in an exit meeting to discuss the findings. Management of the business area provides the audit team with management's response, in the form of a plan for remediation. But auditors don't come to these meetings empty handed. Instead, they provide ________ that include the cause of the issue, details about the root cause(s), and suggested actions management can take to address the findings.

Accepted Answer

A)  exit meeting 
B)  management's response 
C)  audit recommendations 
D)  audit findings

Question 12

Management of the business area provides the audit team with ________, in the form of a plan for remediation.

Accepted Answer

A)  exit meeting 
B)  management's response 
C)  audit recommendations 
D)  audit findings

Question 13

The Institute of Internal Auditors (IIA) updated their three lines of defense model in 2020 to reflect the need for aligned assurance from various areas of a company. Which of the following is the best definition of internal auditors?

Accepted Answer

A)  Internal auditors focus on ensuring that the second and third lines of defense are working cohesively to provide appropriate coverage over a company's risks. 
B)  Internal auditors provide the systematic and independent review of data, information, records, and operations of a business to provide assurance of the effectiveness of internal controls and efficiency of processes. 
C)  Internal auditors evaluate whether the financial statements of the audited company are free from material misstatements and are presented in accordance with generally accepted accounting standards. 
D)  Internal auditors employ rigorous independence checks to ensure that their opinions will be unbiased and that they do not have inappropriate ties to the client.

Question 14

Internal audit's primary purpose is to provide independent assurance that a company's risk management, internal controls, and ________ are effective.

Accepted Answer

A)  Audit canvas 
B)  Workpapers 
C)  Governance processes 
D)  Management action plan

Question 15

What Excel function would you use if you want to return a specified number of characters beginning at the left of the column?

Accepted Answer

A)  Text to Columns 
B)  LEFT 
C)  CONCAT 
D)  SUM

Question 16

An employee of which of the following companies would likely serve as an internal auditor?

Accepted Answer

A)  PwC 
B)  Coca-Cola 
C)  Deloitte 
D)  EY

Question 17

Maeve is a recently hired internal auditor with RAM Manufacturing LLC, a rapidly growing manufacturer of parts for the automotive industry. Maeve conducts an interview with Justin who works in customer management. Justin explains his process for adding new customers to the system.
• The process starts when Justin receives requests from the sales department to add a new customer.
• He reviews the request to determine if the new customer has been approved.
• If the request has been approved, Justin inputs the customer information into the customer management system. However, if it is not approved, he returns it to the source.
• If the customer name already exists in the system, Justin will get an error message and he will notify the requester that the customer name already exists.
• If the customer name does not exist, Justin will finish entering the customer information, including address, contact information and payment terms.
Create a process flowchart for the described customer management process.

Accepted Answer

The answer of Maeve is a recently hired internal auditor...

Question 18

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an operational or business auditor?

Accepted Answer

A)  Network infrastructure 
B)  Accounts payable 
C)  Sales and distribution 
D)  Change management

Question 19

Who prepares the results of the audit engagement as presented in the independent audit report regarding the financial statements?

Accepted Answer

A)  External auditors 
B)  Internal auditors 
C)  Management 
D)  Audit committee

Question 20

The five stages of an audit include important audit activities and deliverables.
 What is Stage D?

Accepted Answer

A)  Planning 
B)  Fieldwork 
C)  Wrap-up 
D)  Reporting

Exam 19: Audit Assurance

What is the first step in fieldwork called?

The plans of the audit team, including the audit planning memo, are presented during what event?

The ________ gathered about the business and internal controls during the audit engagement must be communicated so that management can implement suggestions and address shortcomings.

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the management action plan is delivered?

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the documentation request is delivered?

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the preliminary observations are delivered?

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the audit canvas is delivered?

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the updated management action plan is delivered?

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the sample selection is delivered?

The five stages of an audit include important audit activities and deliverables. What is Stage A?

Management of the business area provides the audit team with ________, in the form of a plan for remediation.

The Institute of Internal Auditors (IIA) updated their three lines of defense model in 2020 to reflect the need for aligned assurance from various areas of a company. Which of the following is the best definition of internal auditors?

Internal audit's primary purpose is to provide independent assurance that a company's risk management, internal controls, and ________ are effective.

What Excel function would you use if you want to return a specified number of characters beginning at the left of the column?

An employee of which of the following companies would likely serve as an internal auditor?

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an operational or business auditor?

Who prepares the results of the audit engagement as presented in the independent audit report regarding the financial statements?

The five stages of an audit include important audit activities and deliverables. What is Stage D?