WGU D560 INTERNAL AUDITING EXAM
QUESTIONS AND ANSWERS. VERIFIED
2025/2026.
What is the definition of Internal Auditing? - ANS Internal Auditing is an independent,
objective assurance and consulting activity designed to add value and improve an organization's
operations.
What are the four types of objectives in internal auditing? - ANS Strategic, Operations,
Reporting, and Compliance objectives.
What do strategic objectives pertain to? - ANS Goals set by management related to
stakeholder interests.
What is the focus of operations objectives? - ANS Effectiveness and efficiency of the entity's
operations, including operational and financial performance goals.
What do reporting objectives encompass? - ANS Internal and external financial and non-
financial reporting, including reliability, timeliness, and transparency.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is the purpose of compliance objectives? - ANS To ensure adherence to laws and
regulations applicable to the entity.
What is governance in the context of internal auditing? - ANS The combination of processes
and structures implemented by the board to inform, direct, manage, and monitor organizational
activities.
How is risk management defined? - ANS 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 management? - ANS To mitigate risks to acceptable levels.
What distinguishes assurance engagements from consulting engagements? - ANS The
primary purpose, nature and scope determination, and the parties involved.
Who is referred to as the auditee in an assurance engagement? - ANS The people subject to
assessment.
What is the role of the internal audit function in assurance engagements? - ANS To
determine the nature and scope of the engagements.
What is meant by independence in internal auditing? - ANS The freedom from conditions
that threaten the ability to carry out audit responsibilities without interference.
What does objectivity mean for an internal auditor? - ANS The ability to make impartial,
unbiased judgments.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is the first step in planning an engagement? - ANS Obtaining an understanding of the
auditee or customer.
What is the relationship between auditing and accounting? - ANS Auditing reviews the
measurements and communications of accounting for propriety, while accounting involves the
collection and communication of financial data.
What does the Sarbanes-Oxley Act of 2002 require from independent auditors? - ANS To
attest to the effectiveness of a company's internal control over financial reporting.
What is the primary audience for internal auditors' financial reporting assurance services? -
ANS Management and the board of directors.
What are some changes affecting the internal audit profession? - ANS Globalization, complex
corporate structures, e-commerce, technological advances, and corporate scandals.
What are the targets of internal audit attention? - ANS Operational effectiveness, reliability of
information systems, safeguarding assets, and compliance with policies and regulations.
What types of consulting activities do internal auditors provide? - ANS Advisory services,
facilitative services, and training in governance, risk management, and control processes.
What is the significance of communicating outcomes in internal auditing? -
ANS Communications must be accurate, objective, clear, concise, constructive, complete, and
timely.
What does cosourcing in internal auditing mean? - ANS Cosourcing means supplementing an
organization's in-house internal audit function with third-party vendors.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Why might an organization choose to cosource its internal audit function? -
ANS Organizations may cosource to access specialized internal audit knowledge and skills or
when they lack sufficient in-house resources.
What is the mission of the Institute of Internal Auditors (IIA)? - ANS To provide dynamic
leadership for the global profession of internal auditing.
What are some activities the IIA supports to fulfill its mission? - ANS Advocating the value of
internal audit, providing professional education, researching internal auditing knowledge, and
sharing best practices.
What is the International Professional Practices Framework (IPPF)? - ANS The IPPF is a
framework that provides mandatory and recommended guidance for the professional practice
of internal auditing.
What are the mandatory elements of the IPPF? - ANS The Core Principles, Code of Ethics,
Standards, and the Definition of Internal Auditing.
What does the recommended guidance in the IPPF include? - ANS Implementation Guidance
and Supplemental Guidance.
What is the Certified Internal Auditor (CIA) certification? - ANS The CIA is the premier
certification for internal auditors, requiring five years of experience or a relevant degree.
What is the purpose of the Internal Audit Practitioner designation? - ANS It assesses
fundamental knowledge of internal audit practices for new and rotational internal auditors.
What does the Qualification in Internal Audit Leadership (QIAL) signify? - ANS It conveys
organizational, ethical, and leadership skills for internal audit executives.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS. VERIFIED
2025/2026.
What is the definition of Internal Auditing? - ANS Internal Auditing is an independent,
objective assurance and consulting activity designed to add value and improve an organization's
operations.
What are the four types of objectives in internal auditing? - ANS Strategic, Operations,
Reporting, and Compliance objectives.
What do strategic objectives pertain to? - ANS Goals set by management related to
stakeholder interests.
What is the focus of operations objectives? - ANS Effectiveness and efficiency of the entity's
operations, including operational and financial performance goals.
What do reporting objectives encompass? - ANS Internal and external financial and non-
financial reporting, including reliability, timeliness, and transparency.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is the purpose of compliance objectives? - ANS To ensure adherence to laws and
regulations applicable to the entity.
What is governance in the context of internal auditing? - ANS The combination of processes
and structures implemented by the board to inform, direct, manage, and monitor organizational
activities.
How is risk management defined? - ANS 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 management? - ANS To mitigate risks to acceptable levels.
What distinguishes assurance engagements from consulting engagements? - ANS The
primary purpose, nature and scope determination, and the parties involved.
Who is referred to as the auditee in an assurance engagement? - ANS The people subject to
assessment.
What is the role of the internal audit function in assurance engagements? - ANS To
determine the nature and scope of the engagements.
What is meant by independence in internal auditing? - ANS The freedom from conditions
that threaten the ability to carry out audit responsibilities without interference.
What does objectivity mean for an internal auditor? - ANS The ability to make impartial,
unbiased judgments.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is the first step in planning an engagement? - ANS Obtaining an understanding of the
auditee or customer.
What is the relationship between auditing and accounting? - ANS Auditing reviews the
measurements and communications of accounting for propriety, while accounting involves the
collection and communication of financial data.
What does the Sarbanes-Oxley Act of 2002 require from independent auditors? - ANS To
attest to the effectiveness of a company's internal control over financial reporting.
What is the primary audience for internal auditors' financial reporting assurance services? -
ANS Management and the board of directors.
What are some changes affecting the internal audit profession? - ANS Globalization, complex
corporate structures, e-commerce, technological advances, and corporate scandals.
What are the targets of internal audit attention? - ANS Operational effectiveness, reliability of
information systems, safeguarding assets, and compliance with policies and regulations.
What types of consulting activities do internal auditors provide? - ANS Advisory services,
facilitative services, and training in governance, risk management, and control processes.
What is the significance of communicating outcomes in internal auditing? -
ANS Communications must be accurate, objective, clear, concise, constructive, complete, and
timely.
What does cosourcing in internal auditing mean? - ANS Cosourcing means supplementing an
organization's in-house internal audit function with third-party vendors.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Why might an organization choose to cosource its internal audit function? -
ANS Organizations may cosource to access specialized internal audit knowledge and skills or
when they lack sufficient in-house resources.
What is the mission of the Institute of Internal Auditors (IIA)? - ANS To provide dynamic
leadership for the global profession of internal auditing.
What are some activities the IIA supports to fulfill its mission? - ANS Advocating the value of
internal audit, providing professional education, researching internal auditing knowledge, and
sharing best practices.
What is the International Professional Practices Framework (IPPF)? - ANS The IPPF is a
framework that provides mandatory and recommended guidance for the professional practice
of internal auditing.
What are the mandatory elements of the IPPF? - ANS The Core Principles, Code of Ethics,
Standards, and the Definition of Internal Auditing.
What does the recommended guidance in the IPPF include? - ANS Implementation Guidance
and Supplemental Guidance.
What is the Certified Internal Auditor (CIA) certification? - ANS The CIA is the premier
certification for internal auditors, requiring five years of experience or a relevant degree.
What is the purpose of the Internal Audit Practitioner designation? - ANS It assesses
fundamental knowledge of internal audit practices for new and rotational internal auditors.
What does the Qualification in Internal Audit Leadership (QIAL) signify? - ANS It conveys
organizational, ethical, and leadership skills for internal audit executives.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
