Performance Standard

Question 1

The chief audit executive must effectively manage the internal audit activity to ensure it adds value to the organization.

Answer 1

2000 - Managing the Internal Audit Activity

Question 2

It refers to the mix of knowledge, skills, and other competencies needed to perform the plan.

Answer 2

Appropriate

Question 3

It refers to the quantity of resources needed to accomplish the plan.

Answer 3

Sufficient

Question 4

They determine the frequency and content of reporting

Answer 4

Chief Audit Executive, Senior Management, and the Board

Question 5

It is factual, adequate, and convincing so that a prudent, informed person would reach the same conclusions as the auditor.

Answer 5

Sufficient information

Question 6

It is the best attainable information through the use of appropriate engagement techniques.

Answer 6

Reliable information

Question 7

It supports engagement observations and recommendations and is consistent with the objectives for the engagement.

Answer 7

Relevant information

Question 8

It helps the organization meet its goals.

Answer 8

Useful information

Question 9

They are free from errors and distortions and are faithful to the underlying facts.

Answer 9

Accurate communications

Question 10

These are fair, impartial, and unbiased and are the result of a fair-minded and balanced assessment of all relevant facts and circumstances.

Answer 10

Objective communications

Question 11

These are easily understood and logical, avoiding unnecessary technical language and providing all significant and relevant information.

Answer 11

Clear communications

Question 12

they are to the point and avoid unnecessary elaboration, superfluous detail, redundancy, and wordiness.

Answer 12

concise communications

Question 13

these are helpful to the engagement client and the organization and lead to improvements where needed.

Answer 13

Constructive communications

Question 14

They lack nothing that is essential to the target audience and include all significant and relevant information and observations to support recommendations and conclusions.

Answer 14

Complete communications

Question 15

These are opportune and expedient, depending on the significance of the issue, allowing management to take appropriate corrective action.

Answer 15

Timely communications

Question 16

When nonconformance with the Code of Ethics or the Standards impacts a specific engagement, communication of the results must disclose the:

Answer 16

 Principle(s) or rule(s) of conduct of the Code of Ethics or the Standard(s) with which full conformance was not achieved.
 Reason(s) for nonconformance.
 Impact of nonconformance on the engagement and the communicated engagement results.

Question 17

Present if management has planned and organized (designed) in a manner that provides reasonable assurance that the organization’s risks have been managed effectively and that the organization’s goals and objectives will be achieved efficiently and economically.

Answer 17

Adequate Control

Question 18

Adherence to policies, plans, procedures, laws, regulations, contracts, or other requirements

Answer 18

Compliance

Question 19

The attitude and actions of the board and management regarding the importance of control within the organization. It provides the discipline and structure for the achievement of the primary objectives of the system of internal control. It includes the following elements:
 Integrity and ethical values.
 Management’s philosophy and operating style.
 Organizational structure.
 Assignment of authority and responsibility.
 Human resource policies and practices.
 Competence of personnel.

Answer 19

Control Environment

Question 20

The policies, procedures (both manual and automated), and activities that are part of a control framework, designed and operated to ensure that risks are contained within the level that an organization is willing to accept

Answer 20

Control processes

Question 21

the foundation for the International Professional Practices Framework and support internal audit effectiveness.

Answer 21

Core Principles for the Professional Practice of Internal Auditing

Question 22

A specific internal audit assignment, task, or review activity, such as an internal audit, control self-assessment review, fraud examination, or consultancy. It may include multiple tasks or activities designed to accomplish a specific set of related objectives.

Answer 22

Engagement

Question 23

Broad statements developed by internal auditors that define intended engagement accomplishments.

Answer 23

Engagement Objectives

Question 24

A document that lists the procedures to be followed during an engagement, designed to achieve the engagement plan.

Answer 24

Engagement Work Program

Question 25

A person or firm outside of the organization that has special knowledge, skill, and experience in a particular discipline.

Answer 25

External Service Provider

Question 26

The combination of processes and structures implemented by the board to inform, direct, manage, and monitor the activities of the organization toward the achievement of its objectives.

Answer 26

Governance

Question 27

Controls that support business management and governance as well as provide general and technical controls over information technology infrastructures such as applications, information, infrastructure, and people.

Answer 27

Information Technology Controls

Question 28

The conceptual framework that organizes the authoritative guidance promulgated by The IIA. Authoritative guidance is composed of two categories – (1) mandatory and (2) recommended.

Answer 28

International Professional Practices Framework

Question 29

The rating, conclusion, and/or other description of results provided by the chief audit executive addressing, at a broad level, governance, risk management, and/or control processes of the organization. it is the professional judgment of the CAE based on the results of a number of individual engagements and other activities for a specific time interval

Answer 29

Overall Opinion

Question 30

Any automated audit tool, such as generalized audit software, test data generators, computerized audit programs, specialized audit utilities, and computer-assisted audit techniques (CAATs).

Answer 30

Technology-based Audit Techniques

Question 31

The relative importance of a matter within the context in which it is being considered, including quantitative and qualitative factors, such as magnitude, nature, effect, relevance, and impact. Professional judgment assists internal auditors when evaluating the significance of matters within the context of the relevant objectives.

Answer 31

Significance