Internal audit glossary

Which concept refers to the subject of an internal audit engagement, such as an area, process, or system?

• Engagement objective

• Activity under review

• Criteria

• Control process

Services that provide advice to stakeholders without offering assurance or taking on management responsibilities are called:

• Advisory services

• Assurance services

• Senior management

• Engagement services

What is the main purpose of the concept ASSURANCE?

• To enforce compliance with laws

• To identify fraud

• To increase stakeholder confidence by comparing against established criteria

• To provide recommendations and guidelines

Which body is referred to as the “board” in the Global Internal Audit Standards?

• Only the shareholders

• The highest-level body charged with governance

• The internal audit department

• The internal audit committee only

The leadership role responsible for managing all aspects of the internal audit function is the:

• Board chairperson

• Chief audit executive

• Engagement supervisor

• Senior manager

What is inherent risk?

• The level of variation in risk tolerated in performance

• The risk that remains after controls are applied

• The organization’s willingness to accept risk

• The combination of internal and external risk factors before any management action

Which term describes the obedience to laws, regulations, contracts, policies, and other requirements?

• Compliance

• Control

• Integrity

• Independence

Which term refers to specifications of the DESIRED state of the activity under review?

• Control processes

• Workpapers

• Engagement results

• Criteria

What is a CONFLICT OF INTEREST?

• A failure to meet audit deadlines

• A disagreement between the management and the auditors

• A situation that may influence, or appear to influence, an auditor’s objectivity

• An intentional act of fraud

An ENGAGEMENT WORK PROGRAM is:

• A code of ethics for auditors and the board

• A summary of the expected engagement results

• A set of organizational policies set to be followed at any moment

• A plan that lists the tasks, methodology, and assigned auditors for achieving engagement objectives