Internal audit Exam 1 questions with correct answers

What are the three components of the internal audit value proposition set forth by the IIA Correct Answer-assurance, insight and objectivity how does the IIA define internal auditing Correct Answer-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 what are the four categories of business objectives discussed in chapter 1 Correct Answer-1. strategic: which pertain to the value creation choices management makes on behalf oft he organization's stakeholders. 2. Operations: which pertain to the effectiveness and efficiency of the organization's operations, including performance and profitability goals and safeguarding resources against loss. 3. Reporting: which pertain to the reliability of internal and external reporting of financial and nonfinancial information. 4. Compliance: which pertain to adherence to applicable laws and regulations What are the definitions of governance, risk management, and control provided in chapter 1 Correct Answer-1. governance: the process conducted by the board of directors to authorize, direct, and oversee management toward the achievement of the organization's objectives. 2. risk management: the process conducted by management to understand and deal with uncertainties (risks and opportunities) that could affect the organization's ability to achieve its objectives.