Internal Audit Ch 1&2 questions with correct answers

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 Correct Answer-d. All of the above 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 Correct Answer-d. The value proposition 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 Correct Answer-a. The benefit of third parties 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. Correct Answer-a. Serve as an independent assurance and consulting activity designed to add value and improve the company's operations