Internal Audit Chapter 1 Questions with 100% Correct Answers.

3 values of internal auditing Correct Answer Assurance = Governance, risk, and control Insight = Catalyst, Analyses, and Assessments. Internal audit is a catalyst for improving an organizations effectiveness and efficiency. Objectivity = Integrity, Accountability, and Independence Definition of internal auditing Correct Answer An independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic. disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal audit helps the organization accomplish its objectives Correct Answer strategic objectives- value creation choices management makes on behalf of its shareholders operations objectives- the effectiveness and efficiency of the organizations operations reporting objectives- reliability of internal and external reporting of financial info compliance objectives- adherence to applicable laws and regulations Internal audit evaluates and improves the effectiveness of risk management, control, and governance processes Correct Answer Governance- process conducted by the board of directors to authorize, direct, and oversee management toward the achievement of the organizations objectives Risk management- process conducted by management to understand and deal with uncertainties that could affect the organizations ability to achieve its objectives Control- the process conducted by management to mitigate risk to an acceptable level Internal audit provides assurance and consulting activity designed to add value and improve operations Correct Answer Assurance - The primary purpose is to assess evidence related to relevant subject matter of interest to someone and provide