Internal Audit Exam 1 with Complete
Solutions
What is the Institute of Internal Auditors (IIA)? - ANSWER-• The global voice, standard-
setter, and resource for the internal audit profession.
• The professional organization that oversees the CIA exam.
What is assurance and consulting? - ANSWER-The two services provided by Internal
Audit
What is Attribute Standards? - ANSWER-Type of Standard that applies to the
characteristics of providers of internal auditing services.
What is the Code of Ethics? - ANSWER-Integrity, Objectivity, Confidentiality, and
Competency
What is the internal audit charter? - ANSWER-The document that defines the purpose,
authority, and responsibility of the internal audit function.
What is the value proposition? - ANSWER-Internal Auditing = Assurance + Insight +
Objectivity
What are the competencies needed to excel as an internal auditor? (5 C's) - ANSWER-•
Competence - the skills and knowledge required to provide assurance and advisory
services that add value.
• Credibility - the ability to inspire trust based on consistent competence and integrity.
• Connectivity - the ability to understand the needs of each of the stakeholders
individually within the greater whole of the organization.
• Communication - instituting methods of relaying information (orally and in multiple
written forms) and listening to the individuals served.
• Courage - the personal fortitude to remain independent and objective and to stand by
the results of the engagements conducted.
What are the characteristics of an internal auditor? - ANSWER-• Employee of
organization
• Do not have to be a CPA
• Reports do not have to follow a specific format
• Provide assurance and consulting services
What are the characteristics of an external auditor? - ANSWER-• Works for outside
audit firm
Solutions
What is the Institute of Internal Auditors (IIA)? - ANSWER-• The global voice, standard-
setter, and resource for the internal audit profession.
• The professional organization that oversees the CIA exam.
What is assurance and consulting? - ANSWER-The two services provided by Internal
Audit
What is Attribute Standards? - ANSWER-Type of Standard that applies to the
characteristics of providers of internal auditing services.
What is the Code of Ethics? - ANSWER-Integrity, Objectivity, Confidentiality, and
Competency
What is the internal audit charter? - ANSWER-The document that defines the purpose,
authority, and responsibility of the internal audit function.
What is the value proposition? - ANSWER-Internal Auditing = Assurance + Insight +
Objectivity
What are the competencies needed to excel as an internal auditor? (5 C's) - ANSWER-•
Competence - the skills and knowledge required to provide assurance and advisory
services that add value.
• Credibility - the ability to inspire trust based on consistent competence and integrity.
• Connectivity - the ability to understand the needs of each of the stakeholders
individually within the greater whole of the organization.
• Communication - instituting methods of relaying information (orally and in multiple
written forms) and listening to the individuals served.
• Courage - the personal fortitude to remain independent and objective and to stand by
the results of the engagements conducted.
What are the characteristics of an internal auditor? - ANSWER-• Employee of
organization
• Do not have to be a CPA
• Reports do not have to follow a specific format
• Provide assurance and consulting services
What are the characteristics of an external auditor? - ANSWER-• Works for outside
audit firm
