Audit Final Exam Newest 2026 Questions and
Correct Detailed Answers Already Graded A+
In determining the resources necessary to perform the engagement, which of the
following is the least important?
A) the number and experience level of the internal audit staff
B) knowledge, skills, and other competencies of the internal audit staff
C) consideration of the use of external resources
D) the work performed by the external auditor in the area - CORRECT
ANSWER-D) the work performed by the external auditor in the area
One purpose the exit conference is for the internal auditor to?
A) require corrective action for deficiencies found
B) review and verify the appropriateness of audit report based upon audited input
C) review and verify the appropriateness of audit report personnel assigned to the
engagement
D) present the final audit report to management
E) plan the audit - CORRECT ANSWER-B) review and verify the appropriateness
of audit report based upon audited input
,The organizational status of the internal audit activity:
A) should be sufficient to permit the accomplishment of its responsibilities
B) is best when reporting relationship is directly to the board of directors
C) requires the board's annual approval of the engagement work schedule,
staffing plan, and financial budget
D) is guaranteed when the charter specifically defines its independence
E) creates objectivity - CORRECT ANSWER-A) should be sufficient to permit the
accomplishment of its responsibilities
When faced with an imposed scope limitation, the chief audit executive should:
A) refuse to perform the engagement until the scope limitation is removed
B) communicate the potential effects of the scope limitation to the audit
committee of the board of directors
C) increase the frequency of engagements concerning the activity in question
D) assign more experienced personnel to the engagement
E) inform the external auditor - CORRECT ANSWER-B) communicate the
potential effects of the scope limitation to the audit committee of the board of
directors
,Internal audit reports should contain the purpose, scope, and results. The audit
results should contain the criteria, condition, cause, and effect of the finding. The
cause can best be described as?
A) factual evidence that the internal auditor found
B) reason for the difference between the expected and actual conditions
C) the risk of exposure because of the condition found
D) resultant evaluations of the effects of the findings
E) a non-functioning control - CORRECT ANSWER-B) reason for the difference
between the expected and actual conditions
In the planning phase, the scope of an internal audit engagement is defined by
the:
A) engagement objectives
B) scheduling and time estimates
C) preliminary survey
D) engagement work program
E) none of the above - CORRECT ANSWER-A) engagement objectives
Control self-assessment is best defined by which of the following statements:
A) determining how well significant risk are being mitigated by control processes
, B) CSA is dependent on good facilitation skills
C) CSA is determining the cost-benefit of controls
D) the objective of CSA is too streamline control processes
E) CSA is best performed by the external auditor - CORRECT ANSWER-A)
determining how well significant risk are being mitigated by control processes
Internal auditors sometimes express opinions in audit reports in addition to
stating facts. Due professional care require that the auditor's opinions be:
A) based on sufficient factual evidence that warrants the expression of opinions
B) based on experience and not biased in any manner
C) expressed only when requested by the auditee or executive management
D) limited to the effectiveness of controls and the appropriateness of accounting
treatments
E) all of the above - CORRECT ANSWER-A) based on sufficient factual evidence
that warrants the expression of opinions
The most appropriate use of an oral engagement communication is to
communicate?
A) sensitive matters to management when the chief audit executive does not
want to commit them to writing
Correct Detailed Answers Already Graded A+
In determining the resources necessary to perform the engagement, which of the
following is the least important?
A) the number and experience level of the internal audit staff
B) knowledge, skills, and other competencies of the internal audit staff
C) consideration of the use of external resources
D) the work performed by the external auditor in the area - CORRECT
ANSWER-D) the work performed by the external auditor in the area
One purpose the exit conference is for the internal auditor to?
A) require corrective action for deficiencies found
B) review and verify the appropriateness of audit report based upon audited input
C) review and verify the appropriateness of audit report personnel assigned to the
engagement
D) present the final audit report to management
E) plan the audit - CORRECT ANSWER-B) review and verify the appropriateness
of audit report based upon audited input
,The organizational status of the internal audit activity:
A) should be sufficient to permit the accomplishment of its responsibilities
B) is best when reporting relationship is directly to the board of directors
C) requires the board's annual approval of the engagement work schedule,
staffing plan, and financial budget
D) is guaranteed when the charter specifically defines its independence
E) creates objectivity - CORRECT ANSWER-A) should be sufficient to permit the
accomplishment of its responsibilities
When faced with an imposed scope limitation, the chief audit executive should:
A) refuse to perform the engagement until the scope limitation is removed
B) communicate the potential effects of the scope limitation to the audit
committee of the board of directors
C) increase the frequency of engagements concerning the activity in question
D) assign more experienced personnel to the engagement
E) inform the external auditor - CORRECT ANSWER-B) communicate the
potential effects of the scope limitation to the audit committee of the board of
directors
,Internal audit reports should contain the purpose, scope, and results. The audit
results should contain the criteria, condition, cause, and effect of the finding. The
cause can best be described as?
A) factual evidence that the internal auditor found
B) reason for the difference between the expected and actual conditions
C) the risk of exposure because of the condition found
D) resultant evaluations of the effects of the findings
E) a non-functioning control - CORRECT ANSWER-B) reason for the difference
between the expected and actual conditions
In the planning phase, the scope of an internal audit engagement is defined by
the:
A) engagement objectives
B) scheduling and time estimates
C) preliminary survey
D) engagement work program
E) none of the above - CORRECT ANSWER-A) engagement objectives
Control self-assessment is best defined by which of the following statements:
A) determining how well significant risk are being mitigated by control processes
, B) CSA is dependent on good facilitation skills
C) CSA is determining the cost-benefit of controls
D) the objective of CSA is too streamline control processes
E) CSA is best performed by the external auditor - CORRECT ANSWER-A)
determining how well significant risk are being mitigated by control processes
Internal auditors sometimes express opinions in audit reports in addition to
stating facts. Due professional care require that the auditor's opinions be:
A) based on sufficient factual evidence that warrants the expression of opinions
B) based on experience and not biased in any manner
C) expressed only when requested by the auditee or executive management
D) limited to the effectiveness of controls and the appropriateness of accounting
treatments
E) all of the above - CORRECT ANSWER-A) based on sufficient factual evidence
that warrants the expression of opinions
The most appropriate use of an oral engagement communication is to
communicate?
A) sensitive matters to management when the chief audit executive does not
want to commit them to writing
