MAC 2601 EXAM PACK 2023
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.
auditing considers business events and conditions also but does not have the task of measuring or
communicating them. they review them for propriety. it is analytical and investigative
Risk - (ANSWER)the effect of uncertainty on business objectives; risk mgmt refers to the set of
coordinated activities to direct and control an organization to recognize opportunities while
management negative events
compliance - (ANSWER)adherence to policies, plans, procedures, laws, regulations, contracts of
other requirements
corporate governance - (ANSWER)values/goals are established and communicated,
accomplishment of goals are monitored, accountability is ensured, and values are preserved
governance umbrella - (ANSWER)board of directors up top- they have strategic direction,
governance oversight
role of the Board in Governance - (ANSWER)to identify the stakeholders of an organization,
understand the needs and expectations of the stakeholders, identify the potential outcomes that
would be unacceptable to key stakeholders
different types of outcomes - (ANSWER)financial, compliance, operations, strategic
Risk appetite - (ANSWER)Amount of risk the organization or function is willing to pursue or
accept to attain its goals
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.
auditing considers business events and conditions also but does not have the task of measuring or
communicating them. they review them for propriety. it is analytical and investigative
Risk - (ANSWER)the effect of uncertainty on business objectives; risk mgmt refers to the set of
coordinated activities to direct and control an organization to recognize opportunities while
management negative events
compliance - (ANSWER)adherence to policies, plans, procedures, laws, regulations, contracts of
other requirements
corporate governance - (ANSWER)values/goals are established and communicated,
accomplishment of goals are monitored, accountability is ensured, and values are preserved
governance umbrella - (ANSWER)board of directors up top- they have strategic direction,
governance oversight
role of the Board in Governance - (ANSWER)to identify the stakeholders of an organization,
understand the needs and expectations of the stakeholders, identify the potential outcomes that
would be unacceptable to key stakeholders
different types of outcomes - (ANSWER)financial, compliance, operations, strategic
Risk appetite - (ANSWER)Amount of risk the organization or function is willing to pursue or
accept to attain its goals
