MAC 2601 EXAM 2023 with Complete Solutions

internal audit - ANSWER-independent, objective assurance and consulting activity designed to add value and improve an organization's operations. independence and objectivity, systematic and disciplined approach governance - ANSWER-the process conducted by the BOD to authorize, direct, and oversee management toward the achievement of the organization's objectives.It is the system of rules, practices, and processes by which a company is directed and controlled. risk management - ANSWER-the process conducted by management to understand and deal with uncertainties that could affect the organization's ability to achieve its objectives control - ANSWER-the process conducted by management to mitigate risks to acceptable levels assurance - ANSWER-an objective examination of evidence for the purpose of providing an independent assessment on risk management, control, or governance processes for the organization consulting - ANSWER-advisory and related client service activities, the nature and scope of which are agreed with the client and which are intended to add value and improve an organizations governance, risk management, and control processses without the internal auditor assuming management responsibilities 3 components of value proposition - ANSWER-assurance, insight, objectivity insight - ANSWER-Internal auditor acts as a catalyst for improving an organization's effectiveness and efficiency by providing insight and recommendation based on analyses and assessment of data and business processes. objectivity - ANSWER-With commitment to integrity and accountability, internal auditor provides value to governing bodies and senior management as an objective source of independent advice. auditing vs accounting - ANSWER-accounting collects, classifies, summarizes and communicates data, as well as measures and communicates business events and conditions.