Internal Audit Function Quiz

10 Questions | Total Attempts: 2957

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Audit Quizzes & Trivia

Quiz on the Internal Audit Function


Questions and Answers
  • 1. 
    The internal audit function is generally considered independent when it can carry out its work freely and ___________.
    • A. 

      Efficiently

    • B. 

      Effectively

    • C. 

      Objectively

    • D. 

      All of the above.

  • 2. 
    It is an independent appraisal function established within the organization to carry out the role and responsibility defined in the Internal Audit Charter.
    • A. 

      Internal Audit Department

    • B. 

      External Audit Department

    • C. 

      Independent Audit Department

    • D. 

      None of the above.

  • 3. 
    It is a formal written statement that defines the approved purpose, authority, and responsibility of the internal audit activity.
    • A. 

      Internal Audit Plan

    • B. 

      Internal Audit Charter

    • C. 

      Internal Audit Program

    • D. 

      None of the above.

  • 4. 
    • A. 

      Only Statement 1 is correct.

    • B. 

      Only Statement 2 is correct.

    • C. 

      Both statements are correct.

    • D. 

      Both statements are wrong.

  • 5. 
    ____________________  are expected to take a more focused oversight role in respect of risk management and internal control.
    • A. 

      Internal Auditors

    • B. 

      Audit Committees

    • C. 

      External Auditors

    • D. 

      None of the above.

  • 6. 
    Internal Audit is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the efficiency of risk management, control, and governance processes.
    • A. 

      True

    • B. 

      False

  • 7. 
    Related to independence is the assumption that internal auditors have unrestricted access to whatever they might need to make an objective assessment. That includes restricted access to plans, forecasts, people, data, products, facilities, and records necessary to perform their independent evaluations.
    • A. 

      True

    • B. 

      False

  • 8. 
    ____________________ is an appraisal activity established or provided as a service to the entity. Its functions include, amongst other things, examining, evaluating and monitoring the adequacy and effectiveness of internal control.
    • A. 

      Internal Audit

    • B. 

      External Audit

    • C. 

      Any of the above.

    • D. 

      None of the above.

  • 9. 
    Which is not one of the five directives from the IIA's Statement of Responsibilities of Internal Auditing that are included in most charters?
    • A. 

      Appraise the economy and efficiency with which resources are employed;

    • B. 

      Review the means of safeguarding assets and, as appropriate, verify the existence of such assets;

    • C. 

      Review the systems established to ensure compliance with those policies, plans, procedures, laws, regulations, and contracts which could have a significant impact on operations and reports, and determine whether the organization is in compliance;

    • D. 

      Review the reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information;

    • E. 

      Create operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned.

  • 10. 
    There are three important assumptions implicit in the definition, objectives, and scope for internal auditing. Which is not one of them?
    • A. 

      The assumption that the internal auditing function is staffed with people possessing the necessary education, experience, and proficiency to perform competently.

    • B. 

      Auditor independence.

    • C. 

      The assumption that the evaluations and conclusions contained in internal auditing reports are directed internally to management and the board, not to stockholders, regulators, or the public.

    • D. 

      The presumption that the evaluations and conclusions contained in internal auditing reports are directed internally to management and the board, not to stockholders, regulators, or the public.