INTERNAL AUDIT EXAM 1 EACH QUESTIONS WITH CORRECT
ANSWERS
1. Which of the following are components of the definition of internal auditing?
a. Independence and Objectivity
b. A systematic and disciplined approach
c. Helping the organization accomplish its objectives
d. All of the above - CORRECT ANSWER✅✅✅d. All of the above
2. Assurance, Insight, and Objectivity comprise:
a. The mission of internal auditing
b. The three lines of defense model
c. The objectives of internal auditing
d. The value of proposition - CORRECT ANSWER✅✅✅d. The value proposition
3. Independent outside auditors provide financial reporting assurance services primarily for:
a. The benefit of third parties
b. Management
c. Board of directors
d. The CEO - CORRECT ANSWER✅✅✅a. The benefit of third parties
4. AVF Company's new CFO 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 of internal audit is
to:
a. Serve as an independent assurance and consulting activity designed to add value and improve the
company's operations
b. Assess the company's methods for safeguarding its assets, as appropriate, verify the existence of the
assets
c. Review the integrity of financial and operating information and the methods used to accumulate and
report information
,d. Determine whether the company's system of internal controls provides reasonable assurance that
information is effectively and efficiently communicated to management. - CORRECT
ANSWER✅✅✅a. Serve as an independent assurance and consulting activity designed to add value
and improve the company's operations
5. Which of the following statements is not true about business objectives?
a. Business objectives represent targets of performance
b. Establishing meaningful business objectives is a prerequisite to effective internal controls
c. Establishing meaningful business objectives is a key component of the management process
d. Business objectives are management's means of employing resources and assigning responsibilities -
CORRECT ANSWER✅✅✅b. Establishing meaningful business objectives is a prerequisite to effective
internal controls
6. Within the context of internal auditing, assurance services are best defined as:
a. Objective examinations of evidence for the purpose of providing independent assessments
b. Advisory services intended to add value and improve an organizations operation
c. Professional activities that measure and communicate financial and business data
d. Objective evaluations of compliance with policies, plans, procedures, laws, and regulations. -
CORRECT ANSWER✅✅✅a. Objective examinations of evidence for the purpose of providing
independent assessments
7. Which of the following is mandatory guidance within the IPPF?
a. Implementation guidance
b. Supplemental guidance
c. The value proposition
d. The core principles - CORRECT ANSWER✅✅✅d. The core principles
8. Which of the following is recommended guidance within the IPPF?
a. The Definition of Internal Auditing
b. The Standards
c. Supplemental guidance
, d. None of the above - CORRECT ANSWER✅✅✅c. Supplemental guidance
9. The Internal Audit Foundation exists to help audit leaders, practitioners, students, and academics
experience continuous growth in their careers to propel them to become:
a. Strong assurance providers
b. Trusted advisors
c. Independent Outside auditors
d. CAEs - CORRECT ANSWER✅✅✅b. Trusted advisors
10. Which of the following is one of the 5 Cs essential to success as an Internal Auditor?
a. Courage
b. Consistency
c. Collaboration
d. Candidness - CORRECT ANSWER✅✅✅a. Courage
11. Which of the following is a framework that can help individual internal auditors and internal audit
functions assess their current competency levels and identify areas for improvement?
a. Internal Control - Integrated Framework
b. International Professional Practices Framework
c. The Global Internal Auditor Competency Framework
d. Enterprise Risk Management Framework - CORRECT ANSWER✅✅✅c. The Global Internal Auditor
Competency Framework
12. Internal auditors must have competent interpersonal skills. Which of the following does not
represent an attribute of interpersonal skills?
a. Communication
b. Leadership
c. Project Management
d. Team capabilities - CORRECT ANSWER✅✅✅c. Project Management
ANSWERS
1. Which of the following are components of the definition of internal auditing?
a. Independence and Objectivity
b. A systematic and disciplined approach
c. Helping the organization accomplish its objectives
d. All of the above - CORRECT ANSWER✅✅✅d. All of the above
2. Assurance, Insight, and Objectivity comprise:
a. The mission of internal auditing
b. The three lines of defense model
c. The objectives of internal auditing
d. The value of proposition - CORRECT ANSWER✅✅✅d. The value proposition
3. Independent outside auditors provide financial reporting assurance services primarily for:
a. The benefit of third parties
b. Management
c. Board of directors
d. The CEO - CORRECT ANSWER✅✅✅a. The benefit of third parties
4. AVF Company's new CFO 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 of internal audit is
to:
a. Serve as an independent assurance and consulting activity designed to add value and improve the
company's operations
b. Assess the company's methods for safeguarding its assets, as appropriate, verify the existence of the
assets
c. Review the integrity of financial and operating information and the methods used to accumulate and
report information
,d. Determine whether the company's system of internal controls provides reasonable assurance that
information is effectively and efficiently communicated to management. - CORRECT
ANSWER✅✅✅a. Serve as an independent assurance and consulting activity designed to add value
and improve the company's operations
5. Which of the following statements is not true about business objectives?
a. Business objectives represent targets of performance
b. Establishing meaningful business objectives is a prerequisite to effective internal controls
c. Establishing meaningful business objectives is a key component of the management process
d. Business objectives are management's means of employing resources and assigning responsibilities -
CORRECT ANSWER✅✅✅b. Establishing meaningful business objectives is a prerequisite to effective
internal controls
6. Within the context of internal auditing, assurance services are best defined as:
a. Objective examinations of evidence for the purpose of providing independent assessments
b. Advisory services intended to add value and improve an organizations operation
c. Professional activities that measure and communicate financial and business data
d. Objective evaluations of compliance with policies, plans, procedures, laws, and regulations. -
CORRECT ANSWER✅✅✅a. Objective examinations of evidence for the purpose of providing
independent assessments
7. Which of the following is mandatory guidance within the IPPF?
a. Implementation guidance
b. Supplemental guidance
c. The value proposition
d. The core principles - CORRECT ANSWER✅✅✅d. The core principles
8. Which of the following is recommended guidance within the IPPF?
a. The Definition of Internal Auditing
b. The Standards
c. Supplemental guidance
, d. None of the above - CORRECT ANSWER✅✅✅c. Supplemental guidance
9. The Internal Audit Foundation exists to help audit leaders, practitioners, students, and academics
experience continuous growth in their careers to propel them to become:
a. Strong assurance providers
b. Trusted advisors
c. Independent Outside auditors
d. CAEs - CORRECT ANSWER✅✅✅b. Trusted advisors
10. Which of the following is one of the 5 Cs essential to success as an Internal Auditor?
a. Courage
b. Consistency
c. Collaboration
d. Candidness - CORRECT ANSWER✅✅✅a. Courage
11. Which of the following is a framework that can help individual internal auditors and internal audit
functions assess their current competency levels and identify areas for improvement?
a. Internal Control - Integrated Framework
b. International Professional Practices Framework
c. The Global Internal Auditor Competency Framework
d. Enterprise Risk Management Framework - CORRECT ANSWER✅✅✅c. The Global Internal Auditor
Competency Framework
12. Internal auditors must have competent interpersonal skills. Which of the following does not
represent an attribute of interpersonal skills?
a. Communication
b. Leadership
c. Project Management
d. Team capabilities - CORRECT ANSWER✅✅✅c. Project Management
