Internal Audit Quiz Questions &
Answers ( Latest Exam with 100%
Solution )
Which of the following is true regarding business process
outsourcing?
a. Outsourcing a core, high-risk business process reduces
the overall operational risk.
b. Outsourced processes should not be included in the
internal audit universe.
c. The independent outside auditor is required to review
all significant outsourced business processes.
d. Management's controls to ensure the outsourcing
provider meets contractual performance requirements
should be tested by the internal audit function. -
CORRECT ANSWERS ✅d. Management's controls to
ensure the outsourcing provider meets contractual
performance requirements should be tested by the
internal audit function.
After business risk have been identified, they should be
assessed in terms of their inherent:
,Internal Audit Quiz Questions &
Answers ( Latest Exam with 100%
Solution )
a. Impact and likelihood
b. Likelihood and probability
c. Significance and severity
d. Significance and control effectiveness - CORRECT
ANSWERS ✅a. Impact and likelihood
The term "risk" is best defined as the possibility that
a. An internal auditor will fail to detect a material
misstatement that causes financial statements or internal
reports to be misstated or misleading.
b. An event could occur affecting the achievement of
objectives.
c. Management will, either knowingly or unknowingly,
make decisions that increase the potential liability of the
organization.
, Internal Audit Quiz Questions &
Answers ( Latest Exam with 100%
Solution )
d. Financial statements or internal records will contain
material misstatements. - CORRECT ANSWERS ✅b.
An event could occur affecting the achievement of
objectives.
Which of the following are components of the definition of
internal auditing?
a. Independence and objectivity
b. A systematic and disciplined approach
c. Helping the organization accomplish its objectives
d. All of the above - CORRECT ANSWERS ✅d. All of
the above
- Independence and objectivity
- A systematic and disciplined approach
Answers ( Latest Exam with 100%
Solution )
Which of the following is true regarding business process
outsourcing?
a. Outsourcing a core, high-risk business process reduces
the overall operational risk.
b. Outsourced processes should not be included in the
internal audit universe.
c. The independent outside auditor is required to review
all significant outsourced business processes.
d. Management's controls to ensure the outsourcing
provider meets contractual performance requirements
should be tested by the internal audit function. -
CORRECT ANSWERS ✅d. Management's controls to
ensure the outsourcing provider meets contractual
performance requirements should be tested by the
internal audit function.
After business risk have been identified, they should be
assessed in terms of their inherent:
,Internal Audit Quiz Questions &
Answers ( Latest Exam with 100%
Solution )
a. Impact and likelihood
b. Likelihood and probability
c. Significance and severity
d. Significance and control effectiveness - CORRECT
ANSWERS ✅a. Impact and likelihood
The term "risk" is best defined as the possibility that
a. An internal auditor will fail to detect a material
misstatement that causes financial statements or internal
reports to be misstated or misleading.
b. An event could occur affecting the achievement of
objectives.
c. Management will, either knowingly or unknowingly,
make decisions that increase the potential liability of the
organization.
, Internal Audit Quiz Questions &
Answers ( Latest Exam with 100%
Solution )
d. Financial statements or internal records will contain
material misstatements. - CORRECT ANSWERS ✅b.
An event could occur affecting the achievement of
objectives.
Which of the following are components of the definition of
internal auditing?
a. Independence and objectivity
b. A systematic and disciplined approach
c. Helping the organization accomplish its objectives
d. All of the above - CORRECT ANSWERS ✅d. All of
the above
- Independence and objectivity
- A systematic and disciplined approach
