The Internal Audit Process:
Test of Controls
AUI3702
2022
Semester 1
Self Assessment
Department of Auditing
,Self Assessment Question: Topic 1 (Learning Unit 2 - IPPF)
1. The purpose of the Code of Ethics is to promote an [ethical] culture in the [profession]
of internal auditing.
2. The principles that internal auditors are required to apply and uphold are; [integrity] ,
objectivity, confidentiality and [competency]
3. [Performance] standards focus on internal audit services and the internal audit
process, as well as the measurement of the [quality] thereof.
4. The implementation standards apply the [attribute] and [performance] standards to
various types of services rendered, such as [assurance] engagements, [fraud]
investigation and reviews.
5. Internal Auditing is an independent, objective [assurance] and consulting activity
designed to [add value] and improve an organisation's operations. It helps an
organisation accomplish its [objectives] by bringing a [systematic] , disciplined
approach to evaluate and [improve] the effectiveness of [risk management] , [control]
and [governance processes] .
6. Implementation standards are currently divided into [assurance] implementation
standards and [consulting] implementation standards.
7. The International Standards for the Professional Practices of Internal Auditing (the
Standards) are the [minimum] requirements which are [internationally] applicable at
organisational and [individual] levels and provide a [framework] for [performing] and
promoting internal auditing.
8. [Attribute] standards focus on the characteristics and qualities of the internal audit
activity as well as on the [individuals] who perform the services of the activity.
9. The mission of internal auditing is to enhance and protect [organisational value] by
providing [risk-based] and [objective] assurance, advice and insight
, MCQ Self Assessment Question: Topic 1 (Learning Unit 2)
1. The internal auditor fails to discover employee fraud during the performance of
an assurance engagement. This non-discovery is most likely to suggest a
violation of the Standards if it was the result of which one of the following?
a. The determination that the cost of extending the audit procedures would exceed the
benefit derived from such procedures.
b. Failure to perform a detailed review of all the transactions under the control of that
employee.
c. The assumption that the internal controls in that area were operating in an adequate
and effective manner.
d. Failure to perform a detailed review of all the transactions in the area.
2. During the evaluation of the accounts payable function, the internal auditor
plans to confirm the creditor’s balances with the relevant suppliers by phoning
each supplier. Where does the internal auditor get the necessary authority to
contact the suppliers?
a. From the Standards for the Professional Practice of Internal Auditing.
b. From the approved policies and procedures for internal audit activities.
c. From the Code of Ethics of the Institute of Internal Auditors
d. From the internal audit activity’s charter.
3. The llA's Code of Ethics requires internal auditors to perform their work with?
a. Punctuality, objectivity, and responsibility.
b. Knowledge, skills, and competencies.
c. Honesty, diligence, and responsibility.
d. Timeliness, sobriety, and clarity.
4. Which principles does the Code of Ethics require internal auditors to apply and
uphold?
a. Integrity, proficiency, confidentiality and competence.
b. Integrity, objectivity, confidentiality and competence.
c. Integrity, independence, objectivity and competence.
d. Independence, objectivity, confidentiality and competence.
5. Which one of the following is the best reason for the chief audit executive (CAE)
to consider the organisation’s strategic plan in developing the annual internal
audit plan?
a. To make recommendations to improve the strategic plan.
b. To ensure that the internal audit plan supports the overall business objectives.
c. To emphasize the importance of the internal audit function to the organisation.
d. To ensure that the internal audit plan will be approved by senior management.
Test of Controls
AUI3702
2022
Semester 1
Self Assessment
Department of Auditing
,Self Assessment Question: Topic 1 (Learning Unit 2 - IPPF)
1. The purpose of the Code of Ethics is to promote an [ethical] culture in the [profession]
of internal auditing.
2. The principles that internal auditors are required to apply and uphold are; [integrity] ,
objectivity, confidentiality and [competency]
3. [Performance] standards focus on internal audit services and the internal audit
process, as well as the measurement of the [quality] thereof.
4. The implementation standards apply the [attribute] and [performance] standards to
various types of services rendered, such as [assurance] engagements, [fraud]
investigation and reviews.
5. Internal Auditing is an independent, objective [assurance] and consulting activity
designed to [add value] and improve an organisation's operations. It helps an
organisation accomplish its [objectives] by bringing a [systematic] , disciplined
approach to evaluate and [improve] the effectiveness of [risk management] , [control]
and [governance processes] .
6. Implementation standards are currently divided into [assurance] implementation
standards and [consulting] implementation standards.
7. The International Standards for the Professional Practices of Internal Auditing (the
Standards) are the [minimum] requirements which are [internationally] applicable at
organisational and [individual] levels and provide a [framework] for [performing] and
promoting internal auditing.
8. [Attribute] standards focus on the characteristics and qualities of the internal audit
activity as well as on the [individuals] who perform the services of the activity.
9. The mission of internal auditing is to enhance and protect [organisational value] by
providing [risk-based] and [objective] assurance, advice and insight
, MCQ Self Assessment Question: Topic 1 (Learning Unit 2)
1. The internal auditor fails to discover employee fraud during the performance of
an assurance engagement. This non-discovery is most likely to suggest a
violation of the Standards if it was the result of which one of the following?
a. The determination that the cost of extending the audit procedures would exceed the
benefit derived from such procedures.
b. Failure to perform a detailed review of all the transactions under the control of that
employee.
c. The assumption that the internal controls in that area were operating in an adequate
and effective manner.
d. Failure to perform a detailed review of all the transactions in the area.
2. During the evaluation of the accounts payable function, the internal auditor
plans to confirm the creditor’s balances with the relevant suppliers by phoning
each supplier. Where does the internal auditor get the necessary authority to
contact the suppliers?
a. From the Standards for the Professional Practice of Internal Auditing.
b. From the approved policies and procedures for internal audit activities.
c. From the Code of Ethics of the Institute of Internal Auditors
d. From the internal audit activity’s charter.
3. The llA's Code of Ethics requires internal auditors to perform their work with?
a. Punctuality, objectivity, and responsibility.
b. Knowledge, skills, and competencies.
c. Honesty, diligence, and responsibility.
d. Timeliness, sobriety, and clarity.
4. Which principles does the Code of Ethics require internal auditors to apply and
uphold?
a. Integrity, proficiency, confidentiality and competence.
b. Integrity, objectivity, confidentiality and competence.
c. Integrity, independence, objectivity and competence.
d. Independence, objectivity, confidentiality and competence.
5. Which one of the following is the best reason for the chief audit executive (CAE)
to consider the organisation’s strategic plan in developing the annual internal
audit plan?
a. To make recommendations to improve the strategic plan.
b. To ensure that the internal audit plan supports the overall business objectives.
c. To emphasize the importance of the internal audit function to the organisation.
d. To ensure that the internal audit plan will be approved by senior management.
