ACCOUNTING MISC unit-1 Review Exam 2023 Questions and Answers (100% Correct).

1: (19) Applicable Guidance 1- According to The IIA’s International Professional Practices Framework, which of the following constitute mandatory guidance for implementing the Standards? A. Development Aids. B. Performance Standards. C. Practice Aids. D. Implementation Guides. Answer (A) is incorrect. Development Aids are not part of the IPPF. Answer (B) is correct. The mandatory guidance portion of the IPPF consists of the Core Principles, Definition of Internal Auditing, the Code of Ethics, Attribute Standards, Performance Standards, and Implementation Standards. Answer (C) is incorrect. Practice Aids are not part of the IPPF Answer (D) is incorrect. Implementation Guides are strongly recommended guidance. 2- The Standards consist of three types of Standards. Which Standards apply to the characteristics of providers of internal auditing services? A. Implementation Standards. B. Performance Standards. C. Independence Standards. D. Attribute Standards. Answer (A) is incorrect. Implementation Standards apply to specific types of engagements. Answer (B) is incorrect. Performance Standards describe the nature of internal auditing and provide quality criteria for evaluation of internal audit performance. Answer (C) is incorrect. The IPPF does not contain Independence Standards Answer (D) is correct. Attribute Standards describe the characteristics of organizations and parties providing internal auditing services. 3- The types of services provided by the internal audit activity can best be described as A. Auditing and consulting. B. Auditing and engagement. C. Assurance and consulting. D. Auditing and assurance. Answer (A) is incorrect. The IIA Glossary defines assurance and consulting, not auditing and consulting, as the types of services provided by the internal audit activity. Answer (B) is incorrect. Engagement is not a type of internal audit service. Answer (C) is correct The internal audit activity provides independent, objective assurance and consulting services designed to add value and improve an organization’s operations (Definition of Internal Auditing). Answer (D) is incorrect. The IIA Glossary defines assurance and consulting, not auditing and assurance, as the types of services provided by the internal audit activity. 4- An internal auditor often faces special problems when performing an engagement at a foreign subsidiary. Which of the following statements is false with respect to the conduct of international engagements? A. The IIA Standards do not apply outside of the United States. B. The internal auditor should determine whether managers are in compliance with local laws. C. It is preferable to have multilingual internal auditors conduct engagements at branches in foreign nations. D. There may be justification for having different organizational policies in force in foreign branches. Answer (A) is correct Pronouncements by The IIA have no geographic limits. Compliance with the concepts in the Standards is essential for the responsibilities of internal auditors to be met, regardless of the national environment