Overview of Internal Auditing Functions

Which of the following are components of the

definition of internal auditing?

• Independence and objectivity.

• A systematic and disciplined approach.

• Helping the organization accomplish its

  objectives.

• All of the above.

Assurance, Insight, and Objectivity comprise:

• The mission of internal auditing.

• The three lines of defense model.

• The objectives of internal auditing.

• The value proposition.

Independent outside auditors provide financial

reporting assurance services primarily for:

• The benefit of third parties.

• Management.

• Board of directors.

• The CEO.

AVF Company's new CFO has asked the company's

CAE to meet with him to discuss the role of the

internal audit function. The CAE should inform the

CFO that the overall responsibility of internal audit

is to:

• Serve as an independent assurance and consulting

  activity designed to add value and improve the

  company's operations.

• Assess the company's methods for safeguarding

  its assets and, as appropriate, verify the existence

  of the assets.

• Review the integrity of financial and operating

  information and the methods used to accumulate

  and report information.

• Determine whether the company's system of

  internal controls provides reasonable assurance

  that information is effectively and efficiently

  communicated to management.

Which of the following statements is not true about

business objectives?

• Business objectives represent targets of

  performance.

• Establishing meaningful business objectives is a

  prerequisite to effective internal control.

• Establishing meaningful business objectives is a

  key component of the management process.

• Business objectives are management's

  means of employing resources and assigning

  responsibilities.

Within the context of internal auditing, assurance

services are best defined as:

• Objective examinations of evidence for the

  purpose of providing independent assessments.

• Advisory services intended to add value and

  improve an organization's operations.

• Professional activities that measure and

  communicate financial and business data.

• Objective evaluations of compliance with policies,

  plans, procedures, laws, and regulations.

Which of the following is mandatory guidance

within the IPPF?

• Implementation guidance.

• Supplemental guidance.

• The value proposition.

• The core principles.

Which of the following is recommended guidance

within the IPPF?

• The Definition of Internal Auditing.

• The Standards.

• Supplemental guidance.

• None of the above.

Which of the following is a framework that can

help individual internal auditors and internal audit

functions assess their current competency levels and

identify areas for improvement?

• Internal Control - Integrated Framework.

• International Professional Practices Framework.

• The Global Internal Auditor Competency

  Framework.

• Enterprise Risk Management Framework.

Internal auditors must have competent

interpersonal skills. Which of the following does not

represent an attribute of interpersonal skills?

• Communication.

• Leadership.

• Project management.

• Team capabilities.