Question 1

What determines whether a control, if operated as prescribed, meets the company's control objectives and affectively prevents or detects errors or fraud?

Accepted Answer

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

Question 2

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.
 What does C represent in the IIA's Three Lines Model?

Accepted Answer

A)  Governing Body 
B)  Management 
C)  Internal Audit 
D)  External Assurance Providers

Question 3

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)  Claims processing 
B)  Network infrastructure 
C)  Accounts payable 
D)  Change management

Question 4

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 aligned assurance?

Accepted Answer

A)  Aligned assurance focuses on ensuring that the second and third lines of defense are working cohesively to provide appropriate coverage over a company's risks. 
B)  Aligned assurance is 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)  Aligned assurance evaluates whether the financial statements of the audited company are free from material misstatements and are presented in accordance with generally accepted accounting standards. 
D)  Aligned assurance employs rigorous independence checks to ensure that their opinions will be unbiased and that they do not have inappropriate ties to the client.

Question 5

________ is the core of an audit engagement.

Accepted Answer

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

Question 6

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 IT auditor?

Accepted Answer

A)  Financial reporting 
B)  Claims processing 
C)  Network infrastructure 
D)  Human resources

Question 7

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

Accepted Answer

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

Question 8

What determines whether a control is operated as designed by a person with appropriate authority and training to perform the control?

Accepted Answer

A)  Operating effectiveness 
B)  Information gathering 
C)  Process walkthrough 
D)  Design effectiveness

Question 9

Many companies perform the audit planning process annually and create a ________-month audit plan.

Accepted Answer

A)  3 
B)  6 
C)  12 
D)  24

Question 10

What Excel function would you use if you want to split a column into multiple columns using a specified delimiter to divide the column?

Accepted Answer

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

Question 11

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

Accepted Answer

A)  PwC 
B)  Coca-Cola 
C)  Disney 
D)  Netflix

Question 12

Once the first draft of the audit report is complete, the audit team meets with the auditee in a(n) ________ to discuss the findings.

Accepted Answer

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

Question 13

What is the first stage after fieldwork, where auditors complete their workpapers and draft an audit report to share with key stakeholders?

Accepted Answer

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

Question 14

If you are independently re-creating a control situation, which operating effectiveness test are you performing?

Accepted Answer

A)  Inquiry 
B)  Observation 
C)  Inspection 
D)  Reperformance

Question 15

What are the results of an audit, such as written explanations of errors, improper activities, control weaknesses or deficiencies, and discovered fraud?

Accepted Answer

A)  Document request 
B)  Wrap-up 
C)  Audit workpapers 
D)  Audit findings

Question 16

Maeve is a recently hired internal auditor with RAM Manufacturing LLC, a rapidly growing manufacturer of parts for the automotive industry. After the audit kickoff meeting, Maeve is given a list of tasks, but the list is not in order. In the following chart, indicate which audit stage each task belongs in planning, fieldwork, wrap-up, reporting, or follow-up.
 $\begin{array}{|l|l|l|}
\hline\text { Number} & \text {Task }&\text { Audit Stage }\
\hline 1. &\text { Send a final copy of the audit report to the audit manager.} & \
\hline 2. & \text {Add your testing observations to the draft report. }& \
\hline 3. & \text {Schedule interviews and walkthrough meetings with the audit }\
&\text {team and auditees.}\
\hline4. &\text {Update the audit canvas and scoping document to incorporate} \
&\text {feedback for the business during the kickoff meeting.}\
\hline 5. &\text {Finish drafting your workpapers and have them reviewed and }\
&\text {approved by the senior auditor on the audit.}\
\hline
\end{array}$

Accepted Answer

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

Question 17

Which of the following is the best definition of a scoping document?

Accepted Answer

A)  A scoping document describes the areas of the process that are subject to audit. 
B)  A scoping document includes key audit planning information. 
C)  A scoping document is an Agile version of a planning memo. 
D)  A scoping document is an interview where auditees explain their daily functions to the 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 IT auditor?

Accepted Answer

A)  Cybersecurity 
B)  Financial reporting 
C)  Claims processing 
D)  Human resources

Question 19

During the wrap-up stage of an audit, what are the notes called that are compiled into formal documentation capturing the results of the control testing performed?

Accepted Answer

A)  Audit findings 
B)  Wrap-up 
C)  Audit workpapers 
D)  Draft audit report

Question 20

What is an interview where auditees explain their daily job functions to the auditor called?

Accepted Answer

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

Exam 19: Audit Assurance

What determines whether a control, if operated as prescribed, meets the company's control objectives and affectively prevents or detects errors or fraud?

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. What does C represent in the IIA's Three Lines Model?

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?

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 aligned assurance?

________ is the core of an audit engagement.

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 IT auditor?

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

What determines whether a control is operated as designed by a person with appropriate authority and training to perform the control?

Many companies perform the audit planning process annually and create a ________-month audit plan.

What Excel function would you use if you want to split a column into multiple columns using a specified delimiter to divide the column?

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

Once the first draft of the audit report is complete, the audit team meets with the auditee in a(n) ________ to discuss the findings.

What is the first stage after fieldwork, where auditors complete their workpapers and draft an audit report to share with key stakeholders?

If you are independently re-creating a control situation, which operating effectiveness test are you performing?

What are the results of an audit, such as written explanations of errors, improper activities, control weaknesses or deficiencies, and discovered fraud?

Which of the following is the best definition of a scoping document?

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 IT auditor?

During the wrap-up stage of an audit, what are the notes called that are compiled into formal documentation capturing the results of the control testing performed?

What is an interview where auditees explain their daily job functions to the auditor called?