Audit - Exam 1 (In-Class Exam Review
UPDATED ACTUAL Exam Questions and
CORRECT Answers
AFV Company's new CRP 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 oft he
internal auditing is to: - CORRECT ANSWER - Serve as an independent assurance and
consulting activity designed to assist and improve the company's operations.
Within the context of internal auditing, assurance services is best defined as: - CORRECT
ANSWER - Objective examinations of evidence for the purpose of providing independent
assessments.
While planning an internal audit, the internal auditor obtains knowledge about the auditee to ___,
among other things. - CORRECT ANSWER - Develop an understanding of the auditee's
objectives and risks.
A primary purpose of the, "Standards" is to: - CORRECT ANSWER - Establish a basis for
evaluating internal audit performance.
Which of the following are, "mandatory guidance" in the IIA's IPPF?
I. Practice Advisories
II. The Code of Ethics
III. The Definition of Internal Auditing
IV. The Standards - CORRECT ANSWER - II, III, and IV.
An internal auditor provides income tax services during the tax season, For which of the
following activities would the auditor most likely be considered in violation of the IIA's Code of
ethics - CORRECT ANSWER - Preparing, for a fee, a divisions managers personal
income tax return.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
AFV Company's new CRP 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 oft he
internal auditing is to: - CORRECT ANSWER - Serve as an independent assurance and
consulting activity designed to assist and improve the company's operations.
Within the context of internal auditing, assurance services is best defined as: - CORRECT
ANSWER - Objective examinations of evidence for the purpose of providing independent
assessments.
While planning an internal audit, the internal auditor obtains knowledge about the auditee to ___,
among other things. - CORRECT ANSWER - Develop an understanding of the auditee's
objectives and risks.
A primary purpose of the, "Standards" is to: - CORRECT ANSWER - Establish a basis for
evaluating internal audit performance.
Which of the following are, "mandatory guidance" in the IIA's IPPF?
I. Practice Advisories
II. The Code of Ethics
III. The Definition of Internal Auditing
IV. The Standards - CORRECT ANSWER - II, III, and IV.
An internal auditor provides income tax services during the tax season, For which of the
following activities would the auditor most likely be considered in violation of the IIA's Code of
ethics - CORRECT ANSWER - Preparing, for a fee, a divisions managers personal
income tax return.
