Quiz Detail

Q1 . An internal audit is completely similar to an external audit.

A True

B False

Q2 . 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.

Q3 . State true or false- The final reports of the internal audits of an organization are shared with shareholders or members who are outside the organization's governance structure.

A True

B False

Q4 . ____________________ 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.

Q5 . 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.

Q6 . 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.

Q7 . Name the costs that a company expects to be levied in the future when the plant is shut-down.

A De-commission liability

B Commission liability

C Asset Property costs

D None of the above

Q8 . Statement 1. External auditors generally consider operations a whole relative to objectives while internal auditors focus primarily on financial systems that have a direct, significant effect on the amounts reported in financial statements. Statement 2. External auditors consider even small amounts of fraud, waste, and abuse as symptoms of underlying issues. The internal auditor considers just what materially affects the financial statements since that is the nature of their engagement.

A Only Statement 1 is correct.

B Only Statement 2 is correct.

C Both statements are correct.

D Both statements are wrong.

Q9 . There are ______ types of internal audits.

A 5

B 2

C 4

D 6

Q10 . 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

Q11 . ____________________ 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.

Q12 . 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 effectiveness of risk management, control, and governance processes.

A True

B False

Q13 . Which of the following option 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, verify the existence of such assets;

C Review the systems established to ensure compliance with those policies, procedures, laws, regulations, and contracts which could have an important impact on operations and reports.

D 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.

Q14 . 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.

Internal Audit Function Quiz

Q1 . An internal audit is completely similar to an external audit.

Q2 . It is an independent appraisal function established within the organization to carry out the role and responsibility defined in the Internal Audit Charter.

Q3 . State true or false- The final reports of the internal audits of an organization are shared with shareholders or members who are outside the organization's governance structure.

Q4 . ____________________ 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.

Q5 . It is a formal written statement that defines the approved purpose, authority, and responsibility of the internal audit activity.

Q6 . The internal audit function is generally considered independent when it can carry out its work freely and ___________.

Q7 . Name the costs that a company expects to be levied in the future when the plant is shut-down.

Q9 . There are ______ types of internal audits.

Q11 . ____________________ are expected to take a more focused oversight role in respect of risk management and internal control.

Q13 . Which of the following option is not one of the five directives from the IIA's Statement of Responsibilities of Internal Auditing that are included in most charters?

Q14 . There are three important assumptions implicit in the definition, objectives, and scope for internal auditing. Which is not one of them?