WGU D560 Internal Audit Exam 1 – Questions &
Correct Answers
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Terms in this set (53)
3 components of value proposition Assurance, Insight, Objectivity
Internal Auditing An independent, objective assurance and consulting
activity designed to add value and improve an
organizations operations
Key components of definition of -helping the organization accomplish its objectives
internal auditing -evaluating and improving the effectiveness of risk
management, control, and governance processes
-assurance and consulting activity designed to add
value and improve operations
-independence and objectivity
-a systematic and disciplined approach
COSO objectives for ERM -strategic objectives
-operations objectives
-reporting objectives
-compliance objectives
COSO objectives for internal controls -operations objectives
-reporting objectives
-compliance objectives
3 phases to internal audit engagement -planning
-performing
-communicating
, Governance the combination of processes and structures
implemented by the board to inform, direct, manage,
and monitor the activities to the organization toward
the achievement of its objectives
Risk Management the process conducted by management to
understand and deal with uncertainties that could
affect the organization's ability to achieve its
objectives
Control any action taken by management, the board, and
other parties to manage risk and increase the
likelihood that established objectives and goals will
be achieved. Management plans, organizes, and
directs the performance of sufficient actions to
provide reasonable assurance that objectives and
goals will be achieved
Independence (Organizationally Independent): freedom from
conditions that threaten objectivity or appearance of
objectivity. Such threats to objectivity must be
managed at the individual auditor, engagement,
functional, and organizational levels
Objectivity (individually objective): on an individual basis; an
unbiased mental attitude that allows internal auditors
to perform engagements in such a manner that they
have an honest belief in their work product and that
no significant quality compromises are made.
Objectivity requires internal auditors not to
subordinate their judgment on audit matters to that of
others.
Mandatory Guidance -the definition
-the code of ethics
-the standards
Strongly Recommended Guidance -position papers
-practice advisories
-practice guides
Correct Answers
Save
Terms in this set (53)
3 components of value proposition Assurance, Insight, Objectivity
Internal Auditing An independent, objective assurance and consulting
activity designed to add value and improve an
organizations operations
Key components of definition of -helping the organization accomplish its objectives
internal auditing -evaluating and improving the effectiveness of risk
management, control, and governance processes
-assurance and consulting activity designed to add
value and improve operations
-independence and objectivity
-a systematic and disciplined approach
COSO objectives for ERM -strategic objectives
-operations objectives
-reporting objectives
-compliance objectives
COSO objectives for internal controls -operations objectives
-reporting objectives
-compliance objectives
3 phases to internal audit engagement -planning
-performing
-communicating
, Governance the combination of processes and structures
implemented by the board to inform, direct, manage,
and monitor the activities to the organization toward
the achievement of its objectives
Risk Management the process conducted by management to
understand and deal with uncertainties that could
affect the organization's ability to achieve its
objectives
Control any action taken by management, the board, and
other parties to manage risk and increase the
likelihood that established objectives and goals will
be achieved. Management plans, organizes, and
directs the performance of sufficient actions to
provide reasonable assurance that objectives and
goals will be achieved
Independence (Organizationally Independent): freedom from
conditions that threaten objectivity or appearance of
objectivity. Such threats to objectivity must be
managed at the individual auditor, engagement,
functional, and organizational levels
Objectivity (individually objective): on an individual basis; an
unbiased mental attitude that allows internal auditors
to perform engagements in such a manner that they
have an honest belief in their work product and that
no significant quality compromises are made.
Objectivity requires internal auditors not to
subordinate their judgment on audit matters to that of
others.
Mandatory Guidance -the definition
-the code of ethics
-the standards
Strongly Recommended Guidance -position papers
-practice advisories
-practice guides
