Module 5: Types of Audits and Assessments Flashcards
What does an external audit assess?
Financial Statements
(T or F) Internal audits come from within the organization
False. It can also be outsourced to a third-party organization.
What is the objective of the external audit of financial statements?
Provide an opinion on the fair presentation of the FS
IS Audit: What are the goals of the IS audit?
- 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
Includes specific tests of controls to demonstrate
adherence to specific regulatory or industry-specific
standards or practices
Compliance Audit
Compliance audit: (T or F) Compliance audit is a standalone audit practice
False. It often overlaps with other audits
What sets compliance audit apart from other types of audit?
it focuses on particular systems or data
Financial Audit: (T or F) Financial Audit is the same as external audit
False. It is different
Assesses the accuracy of financial reporting
Financial Audit
Financial Audit: What is the focus of the financial audit?
financial information Integrity and reliability
Financial Audit: Is focused on what type of testing?
Substantive testing
Financial Audit: places more on what type of audit approach
risk and control-based audit approach
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
Operations Audit
Operations Audit: Who do you give recommendations to?
Appropriate Employees
Performed to assess the overall objectives within an organization related to financial information and assets’ safeguarding, efficiency and compliance
Integrated Audit
Integrated Audit: It is a combination of what audit?
Financial and operational
Integrated Audit: Is done by an IS auditor (T or F)
IS auditor is not a necessity
Auditors often use specific tools and data analysis
techniques
Fraud Audit
Fraud Audit: It usually commences when?
A fraud is discovered
Fraud Audit: The primary objective of fraud audit is to detect fraud (T or F)
False. Its main objective is to determine the amount and persons involved.
Fraud Audit: Who do you report to when fraud is detected
Senior Management
Fraud Audit: Materiality is not considered (T or F)
True this is because all amount material or not is reported
Fraud Audit: Can you give a verdict on the perpetrators?
No, it is the job of the court
Fraud Audit: What can the auditors recommend
- Further investigations on other people handling the same case
- Charges against the perpatrators
