D560 Internal Auditing WGU – Questions With
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Terms in this set (304)
What is the definition of Internal Internal Auditing is an independent, objective
Auditing? assurance and consulting activity designed to add
value and improve an organization's operations.
What are the four types of objectives Strategic, Operations, Reporting, and Compliance
in internal auditing? objectives.
What do strategic objectives pertain Goals set by management related to stakeholder
to? interests.
What is the focus of operations Effectiveness and efficiency of the entity's
objectives? operations, including operational and financial
performance goals.
What do reporting objectives Internal and external financial and non-financial
encompass? reporting, including reliability, timeliness, and
transparency.
What is the purpose of compliance To ensure adherence to laws and regulations
objectives? applicable to the entity.
What is governance in the context of The combination of processes and structures
internal auditing? implemented by the board to inform, direct, manage,
and monitor organizational activities.
How is risk management defined? The process conducted by management to
understand and deal with uncertainties that could
affect the organization's objectives.
,What is the role of control in risk To mitigate risks to acceptable levels.
management?
What distinguishes assurance The primary purpose, nature and scope
engagements from consulting determination, and the parties involved.
engagements?
Who is referred to as the auditee in an The people subject to assessment.
assurance engagement?
What is the role of the internal audit To determine the nature and scope of the
function in assurance engagements? engagements.
What is meant by independence in The freedom from conditions that threaten the ability
internal auditing? to carry out audit responsibilities without
interference.
What does objectivity mean for an The ability to make impartial, unbiased judgments.
internal auditor?
What is the first step in planning an Obtaining an understanding of the auditee or
engagement? customer.
What is the relationship between Auditing reviews the measurements and
auditing and accounting? communications of accounting for propriety, while
accounting involves the collection and
communication of financial data.
What does the Sarbanes-Oxley Act of To attest to the effectiveness of a company's internal
2002 require from independent control over financial reporting.
auditors?
What is the primary audience for Management and the board of directors.
internal auditors' financial reporting
assurance services?
, What are some changes affecting the Globalization, complex corporate structures, e-
internal audit profession? commerce, technological advances, and corporate
scandals.
What are the targets of internal audit Operational effectiveness, reliability of information
attention? systems, safeguarding assets, and compliance with
policies and regulations.
What types of consulting activities do Advisory services, facilitative services, and training in
internal auditors provide? governance, risk management, and control
processes.
What is the significance of Communications must be accurate, objective, clear,
communicating outcomes in internal concise, constructive, complete, and timely.
auditing?
What does cosourcing in internal Cosourcing means supplementing an organization's
auditing mean? in-house internal audit function with third-party
vendors.
Why might an organization choose to Organizations may cosource to access specialized
cosource its internal audit function? internal audit knowledge and skills or when they lack
sufficient in-house resources.
What is the mission of the Institute of To provide dynamic leadership for the global
Internal Auditors (IIA)? profession of internal auditing.
What are some activities the IIA Advocating the value of internal audit, providing
supports to fulfill its mission? professional education, researching internal auditing
knowledge, and sharing best practices.
What is the International Professional The IPPF is a framework that provides mandatory and
Practices Framework (IPPF)? recommended guidance for the professional practice
of internal auditing.
What are the mandatory elements of The Core Principles, Code of Ethics, Standards, and
the IPPF? the Definition of Internal Auditing.
Verified Solutions
Save
Terms in this set (304)
What is the definition of Internal Internal Auditing is an independent, objective
Auditing? assurance and consulting activity designed to add
value and improve an organization's operations.
What are the four types of objectives Strategic, Operations, Reporting, and Compliance
in internal auditing? objectives.
What do strategic objectives pertain Goals set by management related to stakeholder
to? interests.
What is the focus of operations Effectiveness and efficiency of the entity's
objectives? operations, including operational and financial
performance goals.
What do reporting objectives Internal and external financial and non-financial
encompass? reporting, including reliability, timeliness, and
transparency.
What is the purpose of compliance To ensure adherence to laws and regulations
objectives? applicable to the entity.
What is governance in the context of The combination of processes and structures
internal auditing? implemented by the board to inform, direct, manage,
and monitor organizational activities.
How is risk management defined? The process conducted by management to
understand and deal with uncertainties that could
affect the organization's objectives.
,What is the role of control in risk To mitigate risks to acceptable levels.
management?
What distinguishes assurance The primary purpose, nature and scope
engagements from consulting determination, and the parties involved.
engagements?
Who is referred to as the auditee in an The people subject to assessment.
assurance engagement?
What is the role of the internal audit To determine the nature and scope of the
function in assurance engagements? engagements.
What is meant by independence in The freedom from conditions that threaten the ability
internal auditing? to carry out audit responsibilities without
interference.
What does objectivity mean for an The ability to make impartial, unbiased judgments.
internal auditor?
What is the first step in planning an Obtaining an understanding of the auditee or
engagement? customer.
What is the relationship between Auditing reviews the measurements and
auditing and accounting? communications of accounting for propriety, while
accounting involves the collection and
communication of financial data.
What does the Sarbanes-Oxley Act of To attest to the effectiveness of a company's internal
2002 require from independent control over financial reporting.
auditors?
What is the primary audience for Management and the board of directors.
internal auditors' financial reporting
assurance services?
, What are some changes affecting the Globalization, complex corporate structures, e-
internal audit profession? commerce, technological advances, and corporate
scandals.
What are the targets of internal audit Operational effectiveness, reliability of information
attention? systems, safeguarding assets, and compliance with
policies and regulations.
What types of consulting activities do Advisory services, facilitative services, and training in
internal auditors provide? governance, risk management, and control
processes.
What is the significance of Communications must be accurate, objective, clear,
communicating outcomes in internal concise, constructive, complete, and timely.
auditing?
What does cosourcing in internal Cosourcing means supplementing an organization's
auditing mean? in-house internal audit function with third-party
vendors.
Why might an organization choose to Organizations may cosource to access specialized
cosource its internal audit function? internal audit knowledge and skills or when they lack
sufficient in-house resources.
What is the mission of the Institute of To provide dynamic leadership for the global
Internal Auditors (IIA)? profession of internal auditing.
What are some activities the IIA Advocating the value of internal audit, providing
supports to fulfill its mission? professional education, researching internal auditing
knowledge, and sharing best practices.
What is the International Professional The IPPF is a framework that provides mandatory and
Practices Framework (IPPF)? recommended guidance for the professional practice
of internal auditing.
What are the mandatory elements of The Core Principles, Code of Ethics, Standards, and
the IPPF? the Definition of Internal Auditing.
