Lesson 6: Audit Prgm Mgmt Function

Question 1

T or F

Customers of an audit program include the Auditee, Mgmt, External Customers, and the Client

Answer 1

T

Question 2

Audit program benefits should be _________ against program costs.

Answer 2

balanced

Question 3

Auditors can come from any discipline as long as they are ________.

Answer 3

competent (ISO 9000 defines as having “demonstrated ability to apply knowledge and skills”)

Question 4

T or F

Audit schedules are initially constructed based on audit objectives and financial considerations. Subsequently, human resource needs (# of audit days) can be determined.

Answer 4

T

Question 5

Justification of resources is balanced between org needs and availability of resources. Two steps to evaluate resources are:
1.
2.

Answer 5

1. Determine what is required, regardless of the benefits.
2. Determine where audit resources can be employed to achieve greatest benefits

These lead to a prioritized list of goals for Mgmt to further evaluate.

Question 6

Audit function credibility depends on what two factors?

1.
2.

Answer 6

1. Audit Function Mgmt

2. Audit Conduct

Question 7

Audit function outputs should be structured so as to be _______ and _______.

Answer 7

unbiased / impartial

Question 8

Before planning and implementing an audit program, objectives that come from the audit service ________ should be established.

Answer 8

customer

Question 9

Elements of the audit program and outcomes should improve _______ ________. Audit program objectives should be linked to _______ ________ processes.

Answer 9

business performance / continuous improvement

Question 10

The Audit Program Mgmt Cycle consists of what four components?

Answer 10

Plan
Do
Check
Analyze

Question 11

T or F

Plans can be organized by mission, goal, strategies, and tasks

Answer 11

T

Question 12

The audit program plan should ________ organizational objectives.

Answer 12

incorporate

Question 13

The “do” portion of the audit cycle is where _________ of the plan occurs.

Answer 13

implementation

Question 14

T or F

Those who manage / control the audit function need not have an understanding of audit principles, only strong mgmt skills.

Answer 14

F - An understanding of audit principles is required

Question 15

The “do” portion of the audit cycle is where _________ of the plan occurs.

Answer 15

implementation

Question 16

T or F

Those who manage / control the audit function need not have an understanding of audit principles, only strong mgmt skills.

Answer 16

F - An understanding of audit principles is required

Question 17

Personnel changes to audit teams should be frequent to ensure audit ________, _______, and a lack of ________ that could become a factor with ________ - ________.

Answer 17

independence, effectiveness / bias / over-familiarity

Question 18

T or F

Burnout is not a factor with professional auditors, so there is little reason to rotate embers off of a team.

Answer 18

F

Question 19

Broadly, what is the purpose of the “check” aspect of audit program management

Answer 19

Ensure audit program outputs align with goals.

Question 20

Audit service performance, which is a reflection of program mgmt, should be monitored using techniques such as:

1.
2.
3.

Answer 20

1. Auditor observation
2. Customer feedback
3. Review of deliverables (reports)

Question 21

Why is effectiveness the most important measure of an audit program?

Answer 21

Determines the benefits of the audit to the org.

Question 22

T or F

Identification of possible cost reductions, opportunities, and risk reduction are a greater measure of an audit program’s effectiveness than number of audits conducted or non-conformities identified.

Answer 22

T

Question 23

Goal setting and monitoring progress for an audit program results in ________ ________.

Answer 23

continuous improvement