Internal Audit Exam 1 Study Guide | Multiple Choice, True/False &
Short Answer Questions (Latest 2026/2027 Update) Complete
Questions and Guide Answers, 100% Verified Graded A+
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.
ANS: D. All Of The Above
Assurance, Insight, And Objectivity Comprise:
A. The Mission Of Internal Auditing.
B. The Three Lines Model.
C. The Objectives Of Internal Auditing.
D. The Value Proposition.
ANS: D. The Value Proposition
Assurance - Governance, Risk, And Control
Insight - Catalyst, Analyses, And Assessments
Objectivity - Integrity, Accountability, And Independence
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.
ANS: A. The Benefit Of Third Parties
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 And, 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.
ANS: A. Serve As An Independent Assurance And Consulting Activity Designed To Add Value
And Improve The Company's Operations.
Which Of The Following Statements Is Not True About Business Objectives?
A. Business Objectives Represent Targets Of Performance.
B. Establishing Meaningful Business Objectives Is A Prerequisite To Effective Internal Control.
C. Establishing Meaningful Business Objectives Is A Key Component Of The Management
Process.
D. Business Objectives Are Management's Means Of Employing Resources And Assigning
Responsibilities.
ANS: B. Business Objectives Are Management's Means Of Employing Resources And Assigning
Responsibilities.
- This Is A Business Strategy
Short Answer Questions (Latest 2026/2027 Update) Complete
Questions and Guide Answers, 100% Verified Graded A+
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.
ANS: D. All Of The Above
Assurance, Insight, And Objectivity Comprise:
A. The Mission Of Internal Auditing.
B. The Three Lines Model.
C. The Objectives Of Internal Auditing.
D. The Value Proposition.
ANS: D. The Value Proposition
Assurance - Governance, Risk, And Control
Insight - Catalyst, Analyses, And Assessments
Objectivity - Integrity, Accountability, And Independence
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.
ANS: A. The Benefit Of Third Parties
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 And, 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.
ANS: A. Serve As An Independent Assurance And Consulting Activity Designed To Add Value
And Improve The Company's Operations.
Which Of The Following Statements Is Not True About Business Objectives?
A. Business Objectives Represent Targets Of Performance.
B. Establishing Meaningful Business Objectives Is A Prerequisite To Effective Internal Control.
C. Establishing Meaningful Business Objectives Is A Key Component Of The Management
Process.
D. Business Objectives Are Management's Means Of Employing Resources And Assigning
Responsibilities.
ANS: B. Business Objectives Are Management's Means Of Employing Resources And Assigning
Responsibilities.
- This Is A Business Strategy
