Internal Audit Chapter 15 - Multiple Choice
C. Reviewing and commenting on a draft of a new ethics policy created by the company -
ANS-Which of the following would be a typical consulting engagement activity performed by the
internal audit function?
a. Testing compliance with accounts payable policies and procedures
b. Determining the scope of an engagement to test IT application controls
c. Reviewing and commenting on a draft of a new ethics policy created by the company
d. Testing the design adequacy of controls over the termination of employees
D. Potential impact on the independent outside auditor's financial statement audit - ANS-Which
of the following is not a required consideration regarding proficiency and due professional care
when choosing to perform a consulting engagement?
a. Availability of adequate skills and resources to conduct the engagement
b. Needs and expectations of the engagement customer
c. Cost of the engagement relative to the potential benefits
d. Potential impact on the independent outside auditor's financial statement audit
B. A training consulting engagement - ANS-Senior management of an organization has
requested that the internal audit function help educate employees about internal control
concepts. This work is an example of:
a. An assurance engagement
b. A training consulting engagement
c. A facilitative consulting engagement
d. An advisory consulting engagement
C. Review a new IT application before implementation - ANS-It would be appropriate for the
internal audit function to perform which of the following:
a. Design controls for a process
b. Develop a new whistleblower policy
c. Review a new IT application before implementation
d. Lead a process reengineering project
D. Expressing a conclusion on the design adequacy and operating effectiveness of a process -
ANS-Which of the following is not likely to be a step during a consulting engagement?
a. Understanding the objectives of a process
b. Assessing the risks in a process
C. Reviewing and commenting on a draft of a new ethics policy created by the company -
ANS-Which of the following would be a typical consulting engagement activity performed by the
internal audit function?
a. Testing compliance with accounts payable policies and procedures
b. Determining the scope of an engagement to test IT application controls
c. Reviewing and commenting on a draft of a new ethics policy created by the company
d. Testing the design adequacy of controls over the termination of employees
D. Potential impact on the independent outside auditor's financial statement audit - ANS-Which
of the following is not a required consideration regarding proficiency and due professional care
when choosing to perform a consulting engagement?
a. Availability of adequate skills and resources to conduct the engagement
b. Needs and expectations of the engagement customer
c. Cost of the engagement relative to the potential benefits
d. Potential impact on the independent outside auditor's financial statement audit
B. A training consulting engagement - ANS-Senior management of an organization has
requested that the internal audit function help educate employees about internal control
concepts. This work is an example of:
a. An assurance engagement
b. A training consulting engagement
c. A facilitative consulting engagement
d. An advisory consulting engagement
C. Review a new IT application before implementation - ANS-It would be appropriate for the
internal audit function to perform which of the following:
a. Design controls for a process
b. Develop a new whistleblower policy
c. Review a new IT application before implementation
d. Lead a process reengineering project
D. Expressing a conclusion on the design adequacy and operating effectiveness of a process -
ANS-Which of the following is not likely to be a step during a consulting engagement?
a. Understanding the objectives of a process
b. Assessing the risks in a process
