INTERNAL AUDIT EXAM 1 FREQUENTLY TESTED
ACTUAL QUESTIONS WITH CORRECT ANSWERS
Question 1.
1. 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
ANSWER
d. All of the above
Question 2.
2. Assurance, Insight, and Objectivity comprise:
a. The mission of internal auditing
b. The three lines of defense model
c. The objectives of internal auditing
d. The value of proposition
ANSWER
d. The value proposition
Question 3.
3. Independent outside auditors provide financial reporting assurance services primarily for:
a. The benefit of third parties
b. Management
c. Board of directors
d. The CEO
ANSWER
a. The benefit of third parties
,Question 4.
4. AVF Company's new CFO has asked the company's CAE to meet with him to discuss the role of the
internal audit function. The CAE should inform the CFO that the overall responsibility of internal audit
is to:
a. Serve as an independent assurance and consulting activity designed to add value and improve the
company's operations
b. Assess the company's methods for safeguarding its assets, as appropriate, verify the existence of
the assets
c. Review the integrity of financial and operating information and the methods used to accumulate
and report information
d. Determine whether the company's system of internal controls provides reasonable assurance that
information is effectively and efficiently communicated to management.
ANSWER
a. Serve as an independent assurance and consulting activity designed to add value and
improve the company's operations
Question 5.
5. Which of the following statements is not true about business objectives?
a. Business objectives represent targets of performance
b. Establishing meaningful business objectives is a prerequisite to effective internal controls
c. Establishing meaningful business objectives is a key component of the management process
d. Business objectives are management's means of employing resources and assigning responsibilities
ANSWER
b. Establishing meaningful business objectives is a prerequisite to effective internal controls
Question 6.
6. Within the context of internal auditing, assurance services are best defined as:
a. Objective examinations of evidence for the purpose of providing independent assessments
b. Advisory services intended to add value and improve an organizations operation
c. Professional activities that measure and communicate financial and business data
d. Objective evaluations of compliance with policies, plans, procedures, laws, and regulations.
ANSWER
a. Objective examinations of evidence for the purpose of providing independent assessments
, Question 7.
7. Which of the following is mandatory guidance within the IPPF?
a. Implementation guidance
b. Supplemental guidance
c. The value proposition
d. The core principles
ANSWER
d. The core principles
Question 8.
8. Which of the following is recommended guidance within the IPPF?
a. The Definition of Internal Auditing
b. The Standards
c. Supplemental guidance
d. None of the above
ANSWER
c. Supplemental guidance
Question 9.
9. The Internal Audit Foundation exists to help audit leaders, practitioners, students, and academics
experience continuous growth in their careers to propel them to become:
a. Strong assurance providers
b. Trusted advisors
c. Independent Outside auditors
d. CAEs
ANSWER
b. Trusted advisors
Question 10.
10. Which of the following is one of the 5 Cs essential to success as an Internal Auditor?
a. Courage
b. Consistency
c. Collaboration
d. Candidness
ANSWER
a. Courage
ACTUAL QUESTIONS WITH CORRECT ANSWERS
Question 1.
1. 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
ANSWER
d. All of the above
Question 2.
2. Assurance, Insight, and Objectivity comprise:
a. The mission of internal auditing
b. The three lines of defense model
c. The objectives of internal auditing
d. The value of proposition
ANSWER
d. The value proposition
Question 3.
3. Independent outside auditors provide financial reporting assurance services primarily for:
a. The benefit of third parties
b. Management
c. Board of directors
d. The CEO
ANSWER
a. The benefit of third parties
,Question 4.
4. AVF Company's new CFO has asked the company's CAE to meet with him to discuss the role of the
internal audit function. The CAE should inform the CFO that the overall responsibility of internal audit
is to:
a. Serve as an independent assurance and consulting activity designed to add value and improve the
company's operations
b. Assess the company's methods for safeguarding its assets, as appropriate, verify the existence of
the assets
c. Review the integrity of financial and operating information and the methods used to accumulate
and report information
d. Determine whether the company's system of internal controls provides reasonable assurance that
information is effectively and efficiently communicated to management.
ANSWER
a. Serve as an independent assurance and consulting activity designed to add value and
improve the company's operations
Question 5.
5. Which of the following statements is not true about business objectives?
a. Business objectives represent targets of performance
b. Establishing meaningful business objectives is a prerequisite to effective internal controls
c. Establishing meaningful business objectives is a key component of the management process
d. Business objectives are management's means of employing resources and assigning responsibilities
ANSWER
b. Establishing meaningful business objectives is a prerequisite to effective internal controls
Question 6.
6. Within the context of internal auditing, assurance services are best defined as:
a. Objective examinations of evidence for the purpose of providing independent assessments
b. Advisory services intended to add value and improve an organizations operation
c. Professional activities that measure and communicate financial and business data
d. Objective evaluations of compliance with policies, plans, procedures, laws, and regulations.
ANSWER
a. Objective examinations of evidence for the purpose of providing independent assessments
, Question 7.
7. Which of the following is mandatory guidance within the IPPF?
a. Implementation guidance
b. Supplemental guidance
c. The value proposition
d. The core principles
ANSWER
d. The core principles
Question 8.
8. Which of the following is recommended guidance within the IPPF?
a. The Definition of Internal Auditing
b. The Standards
c. Supplemental guidance
d. None of the above
ANSWER
c. Supplemental guidance
Question 9.
9. The Internal Audit Foundation exists to help audit leaders, practitioners, students, and academics
experience continuous growth in their careers to propel them to become:
a. Strong assurance providers
b. Trusted advisors
c. Independent Outside auditors
d. CAEs
ANSWER
b. Trusted advisors
Question 10.
10. Which of the following is one of the 5 Cs essential to success as an Internal Auditor?
a. Courage
b. Consistency
c. Collaboration
d. Candidness
ANSWER
a. Courage
