Internal Audit Exam 1 Practice Questions with Correct Answers

Internal Auditing Correct Answer An independent, objective assurance and consulting activity designed to add value and improve an organization's operations Add Value Correct Answer Value is provided by improving opportunities to achieve organizational objectives, identifying operational improvement, auditor reducing risk exposure through both assurance and consulting services Objectives Correct Answer What an organization wants to achieve Independence Correct Answer The freedom from conditions that threaten objectivity or the appearance of objectivity. Such threats to objectivity must be managed at the individual auditor, engagement, functional, and organizational levels Objectivity Correct Answer An unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they have an honest belief in their work product and that no significant quality compromises are made: objectivity requires internal auditors not to subordinate their judgment on audit matters to that of others Engagement Correct Answer A specific internal audit assignment or project that includes multiple tasks or activities designed to accomplish a specific set of objectives: see also assurance services and consulting services COSO Correct Answer The Committee of Sponsoring Organizations of the Treadway Commission Compliance Correct Answer Conformity and adherence to applicable laws and regulations as well as policies, plans, procedures, contracts, or other requirements The IIA Motto Correct Answer Progress through sharing IPPF Correct Answer International Professional Practices Framework, which consists of both mandatory and strongly recommended guidance