Module 5: Types of Audits and Assessments

Question 1

What does an external audit assess?

Answer 1

Financial Statements

Question 2

(T or F) Internal audits come from within the organization

Answer 2

False. It can also be outsourced to a third-party organization.

Question 3

What is the objective of the external audit of financial statements?

Answer 3

Provide an opinion on the fair presentation of the FS

Question 4

IS Audit: What are the goals of the IS audit?

Answer 4

• Provide reasonable assurance that business, operational and control objectives will be met
• Undesired events will be prevented, or detected and corrected in a timely manner

Question 5

Includes specific tests of controls to demonstrate
adherence to specific regulatory or industry-specific
standards or practices

Answer 5

Compliance Audit

Question 6

Compliance audit: (T or F) Compliance audit is a standalone audit practice

Answer 6

False. It often overlaps with other audits

Question 7

What sets compliance audit apart from other types of audit?

Answer 7

it focuses on particular systems or data

Question 8

Financial Audit: (T or F) Financial Audit is the same as external audit

Answer 8

False. It is different

Question 9

Assesses the accuracy of financial reporting

Answer 9

Financial Audit

Question 10

Financial Audit: What is the focus of the financial audit?

Answer 10

financial information Integrity and reliability

Question 11

Financial Audit: Is focused on what type of testing?

Answer 11

Substantive testing

Question 12

Financial Audit: places more on what type of audit approach

Answer 12

risk and control-based audit approach

Question 13

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 13

Operations Audit

Question 14

Operations Audit: Who do you give recommendations to?

Answer 14

Appropriate Employees

Question 15

Performed to assess the overall objectives within an organization related to financial information and assets’ safeguarding, efficiency and compliance

Answer 15

Integrated Audit

Question 16

Integrated Audit: It is a combination of what audit?

Answer 16

Financial and operational

Question 17

Integrated Audit: Is done by an IS auditor (T or F)

Answer 17

IS auditor is not a necessity

Question 18

Auditors often use specific tools and data analysis
techniques

Answer 18

Fraud Audit

Question 19

Fraud Audit: It usually commences when?

Answer 19

A fraud is discovered

Question 20

Fraud Audit: The primary objective of fraud audit is to detect fraud (T or F)

Answer 20

False. Its main objective is to determine the amount and persons involved.

Question 21

Fraud Audit: Who do you report to when fraud is detected

Answer 21

Senior Management

Question 22

Fraud Audit: Materiality is not considered (T or F)

Answer 22

True this is because all amount material or not is reported

Question 23

Fraud Audit: Can you give a verdict on the perpetrators?

Answer 23

No, it is the job of the court

Question 24

Fraud Audit: What can the auditors recommend

Answer 24

1. Further investigations on other people handling the same case
2. Charges against the perpatrators

Question 25

Specialized audit to discover, disclose and follow up on
fraud and crime

Answer 25

Forensic Audit

Question 26

Forensic Audit: What is the primary purpose of Forensic Audit

Answer 26

To develop evidence

Question 27

Forensic Audit: Mishandling evidence can weaken your case (T or F)

Answer 27

True. The other party can prove that the chain of custody was not properly followed and thus the evidence will become inadmissible

Question 28

An investigation that includes the analysis of electronic
devices such as computers, smartphones, disks, switches,
routers and hubs

Answer 28

Computer Forensic Audit

Question 29

Provides an independent evaluation of software
products, verifying that its configuration items’ actual
functionality and performance are consistent with the
requirement specifications

Answer 29

Functional Audit

Question 30

Functional Audit: This is held when?

Answer 30

Prior to software delivery or after implementation

Question 31

Functional Audit: It is in line with

Answer 31

The System Development Life Cycle