Introduction to Internal Auditing

Question 1

Define Internal Auditing

Answer 1

An independent, objective assurance and consulting activity designed to add value and improve the organisation operations.
It helps the organisation accomplish its objective by bringing a systematic, disciplined approach tp evaluate and improve the effectiveness of risk management control and goverance processes

Question 2

What does IPPF stand for?

Answer 2

International Professsional Practices Framework

Question 3

How many elements are there in the IPPF?

Answer 3

6

Question 4

State the mandatory elements in the IPPF?

Answer 4

Core principles
Definition
Code of ethics
Standards

Question 5

What does core principles encompass?

Answer 5

• Demonstrates integrity
• Demonstrates competence and due professional care
• Is objective and free from undue influence (independent)
• Aligns with the strategies, objectives and risks of the organisation
• Is appropriately positioned and adequately resourced
• Demonstrates quality and continuous improvement
• Communicates effectively
• Is insightful, proactive and future-focused
• Promotes organisational improvement

Question 6

Why was the code of ethics established?

Answer 6

To promote and ethical culture throughout the internal audit profession

Question 7

The code of ethics applies to who?

Answer 7

To all Internal auditors registered as members with Institute of Internal Auditors who perform internal auditing services, regardless of the industry and the changing business environment

Question 8

Explain standards

Answer 8

The minimum requirements which are internationally applicable at organisational and individual levels and provide a framework for performing and promoting internal auditing

Question 9

State the purpose of Standards

Answer 9

• Delineate basic principle that represent the practice of internal auditing as it should be
• Provide a framework for performing and promoting a board range of value-added internal auditing activity
• Establish the basis for the evaluation of internal auditing performance
• Foster improved organisational processes and operations

Question 10

What are the recommended guidance of IPPF?

Answer 10

Implementation guidance
Supplemental guidance

Question 11

Annotate supplemental guidance

Answer 11

• Assist a wide range of interested parties in understanding significant governance, risk and control issues and delineating related roles and responsibilities of internal auditors
• Previous practice guidance

Question 12

Explain implementation guidance

Answer 12

Assist internal auditors in applying the definiton, the code of ethics and the standards, promoting good practices
old practice advisories

Question 13

State the mission of internal auditing

Answer 13

To enhance and protect organisational value by providing risk based and objective assurance, advice and insight

Question 14

Which elements consist of Standards?

Answer 14

Attribute standards
Performance standards

Question 15

What does attribute standards focus on?

Answer 15

The characteristics and qualities of the internal auditing activity; and the individuals who perform the services of the activity

Question 16

What does performance standards focus on?

Answer 16

Internal auditing services, the internal audit process and the measurement of the quality thereof.

Question 17

How is the implementation standards divided into?

Answer 17

assurance services (implementation standard)
consulting services

Question 18

What does assurance services deal with?

Answer 18

The objective evaluation of evidence to provide an independent assessment of goverance, risk management and control processes.>

Question 19

What does consulting services focus on?

Answer 19

Are activities beyond traditional assurance work, as requested by management, to assist them to achieve the organisation’s objective.

Question 20

Who should internal auditors report to? For the purpose of ensuring its independence

Answer 20

Highest level of authority in the organisation (board of directors?

Question 21

What does CAE stand for?

Answer 21

Chief Audit Executive

Question 22

Decipher what type of consulting services activities are

Answer 22

• Conducting staff training
• Providing advice to management on controls, risk issues and goverance
• Assisting to developing and drafting policies
• Participating in quality teams

Question 23

State the type of activities encompassed in assurance services

Answer 23

The internal auditor to provide an independent and objective opinion on:
- whether management’s policies and procedures are adhered to
- whether processes are mitigating the risks threatening management’s objectives
- whether the organisation is adhering to/complying with relevant laws and regulations