Aud 1

Question 1

involves obtaining and evaluating evidence about assertions regarding economic actions and events.

Answer 1

AUDIT

Question 2

systematic process
conducted objectively

Answer 2

Audit

Question 3

Auditors ascertain the degree of correspondence between
________ and _________

Answer 3

Assertions and Establish Criteria

Question 4

They are the one who communicate the audit results to various
interested users

Answer 4

Auditors

Question 5

3 Types of Audit

Answer 5

Financial Statement Audit
Compliance Audit
Operational Audit

Question 6

is a future oriented, systematic, and independent evaluation of organizational activities. Financial data may be used but the primary sources of evidence are the
operational policies and achievements related to organization objectives.

Answer 6

OPERATIONAL AUDIT

Question 7

______ and efficiencies may be evaluated during this type of review

Answer 7

Internal Controls

Question 8

defines operational audits as systematic processes for evaluating
an organization’s efficiency, effectiveness, and economy of
operations under its management’s control and reporting the evaluation results and recommendations for improvement to appropriate employees.

Answer 8

Institute of Internal Auditors’

Question 9

Operational audit is “A review of how an organization’s management and its operating procedures are functioning with respect to their ______ and _______ in meeting stated objectives.

Answer 9

Effectiveness and Efficiency

Question 10

_____ an in-depth, forward-
looking process that auditors use when evaluating an organization’s operational activities. The long-
term outlook of using these audits is to improve company performance according to measurable criteria like speed, quality, efficiency, flexibility,
customer value, environment, and cost.

Answer 10

Operational Audit

Question 11

has to do primarily with the position of internal audit within the organization’s hierarchy. Internal audit should report to the audit committee (or its equivalent) on the board of directors so it receives advice and support to perform its duties. Furthermore, internal audit should not be under the control of those they audit. is direct reporting line to the highest authority within the organization will help internal audit reach its full potential, and also get the attention from those whose influence, recognition, and respect can compel corrective action of any anomalies identified by the auditors.

Answer 11

Independence

Question 12

related to the auditors’ frame of mind and their ability to examine documents, processes, and programs without a bias, without an agenda, with no other motive than to and the truth

Answer 12

Objectivity

Question 13

___ are one of the biggest threats to objectivity, so internal auditors must be careful to balance maintaining healthy professional and social
relationships with others in the organization without becoming too
cozy with them

Answer 13

Conflict of Interest

Question 14

relates to the auditors’ ability to give confidence and make statements regarding the condition of matters within the organization. It is often considered a synonym to “compliance” as has been the traditional focus of internal auditors for millennia.

Answer 14

Assurance

Question 15

______ means giving advice to management and the board, and
engaging in activities that helps the organization resolve nagging
business issues.

Answer 15

Consulting

Question 16

If you ask a gathering of internal auditors if
they add value in their organizations, they unanimously raise their
hands in agreement

Answer 16

Designed to Add Value