Performance Standards

Question 1

Define “Managing the Internal Audit Activity (Standard 2000)”.

Answer 1

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

Question 2

Define “Communicating Results (Standard 2400)”.

Answer 2

“Internal auditors must communicate the results of engagements.”

Question 3

List the seven primary themes of Performance Standards.

Answer 3

(1) Managing the Internal Audit Activity; (2) Nature of Work; (3) Engagement Planning; (4) Performing the Engagement; (5) Communicating Results; (6) Monitoring Progress; and (7) Resolution of Senior Management’s Acceptance of Risks.

Question 4

Define the “Resolution of Senior Management’s Acceptance of Risks (Standard 2600)”.

Answer 4

“When the chief audit executive believes that senior management has accepted a level of residual risk that may be unacceptable to the organization, the chief audit executive must discuss the matter with senior management. If the decision regarding residual risk is not resolved, the chief audit executive must report the matter to the board for resolution.”

Question 5

Define “Engagement Planning (Standard 2200)”.

Answer 5

“Internal auditors must develop and document a plan for each engagement, including the engagement’s objectives, scope, timing, and resource allocations.”

Question 6

Define “Nature of Work (Standard 2100)”.

Answer 6

“The internal audit activity must evaluate and contribute to the improvement of governance, risk management, and control processes, using a systematic and disciplined approach.”

Question 7

Define “Performing the Engagement (Standard 2300)”.

Answer 7

“Internal auditors must identify, analyze, evaluate, and document sufficient information to achieve the engagement’s objectives.”

Question 8

Define the “Monitoring Progress (Standard 2500)”.

Answer 8

“The chief audit executive must establish and maintain a system to monitor the disposition of results communicated to management.”