April 2020 Internal Auditor Quiz

1. Which of the following aspects of an organization are affected by culture, according to "10 Questions on Culture"?

Morale.

Productivity.

Achievement of goals.

All of the above.

2. According to author Rick Wright in "An RPA Road Test," anyone with an advanced foundation in the use of basic software tools like Microsoft Excel can develop rudimentary bots.

True

False

3. What do the authors of "10 Questions on Culture" say regarding management's ability to review a cultural assessment survey before it's implemented?

Assessments should be a collaborate effort that involves management and staff throughout the engagement.

Questions should be shown to managers before the assessment, but they should not be permitted to make changes.

Management should not be permitted to see assessment questions before the survey.

4. According to "The Responsible Organization" by Neil Hodge, how many U.S. CEOs signed the Business Roundtable's Statement on the Purpose of a Corporation last August to embrace sustainable practices across the business?

300.

40.

181.

2020.

5. According to the "ESG Metrics" sidebar in Neil Hodge's "The Responsible Organization," gender diversity falls under which category?

Environmental.

Social.

Corporate Governance.

None of the above.

6. According to "An RPA Road Test," how much time would the 1- to 2-hour audit step used in YRCW's bot pilot take via automation if direct access to data could be obtained?

10-15 minutes.

7-10 minutes.

3-5 minutes.

2 minutes or less.

7. According to "Audit With Acumen," internal audit may face a trade-off between demonstrating business acumen and conforming to the International Standards for the Professional Practice of Internal Auditing.

True

False

8. According to "Audit With Acumen," by Basil Orsini, developing business acumen can:

Enable internal audit to help increase profitability through cost savings and revenue-generation.

Enhance internal audit’s risk-based coverage of the organization’s main lines of business.

Give internal audit a seat at the table with senior management and the board.

Raise internal audit’s performance in a quality assurance review.

9. In "10 Questions on Culture," what set of rules do the authors say recognize culture as a legitimate balance sheet item?

The IIA’s International Standards for the Professional Practice of Internal Auditing.

Generally accepted accounting principles.

International accounting standards.

International financial reporting standards.

10. According to Israel Sadu's "Auditing Knowledge Management," explicit knowledge accounts for about 80% to 90% of the knowledge held in a typical organization.

True

False

11. According to "The Value in the Business Ecosystem," within ecosystem audits, auditors should:

Know every single party within the chain of external relationships.

Identify the external entity that monitors the quality of delivery of key third-party activities.

Help capture and challenge the business understanding of the end-to-end ecosystem.

Use potential cyber events to test the strength of interconnections between the business and third parties.

12. In "An RPA Road Test," under what circumstances does author Rick Wright say internal audit functions are likely to have a better business case for robotic process automation (RPA)?

When the audit plan includes substantial compliance assurance engagements, repeated frequently.

When the audit plan comprises a large proportion of operational and consulting projects.

When every member of the audit staff has some level of RPA expertise.

None of the above.

13. According to "Audit With Acumen," basing multiyear, annual audit, and engagement plans on the organization's corporate and business risk profiles is an example of which area of business acumen?

Client.

Governance.

Innovation and learning.

Internal processes.

14. According to "The Value in the Business Ecosystem," by Brian Kostek, aiming scoping questions, walk-throughs, and outputs at the organization's external partners shifts the emphasis from control gaps, issues, and items requiring resolution to:

The partners’ risk management framework and internal controls

Contractual and compliance requirements for third-party relationships.

Interdependencies between the business and its partners.

How the business protects its value-driving activities and profit-making ability.

15. According to "The Value in the Business Ecosystem," when conducting an integrated business ecosystem audit, internal audit should incorporate external parties' documentation formats into its documentation standard.

True

False