Module Nine - Audit and Change

Question 1

What is an audit

Answer 1

The evaluation of something to a predefined criteria

Question 2

Why are audits conducted

Answer 2

To establish the validity and reliability of information and processes

Question 3

What is the goal of an audit

Answer 3

To form an objective opinion relating back to audit standards

Question 4

what is an external auditor

Answer 4

Employed by a Business for annual reviews

Question 5

What is an internal auditor

Answer 5

Qualified company employee who checks records

Question 6

What three things does an external auditors report show

Answer 6

1. Free from material mis statement 2. Free from errors 3. Are a true and fair reflection

Question 7

What is an audit report

Answer 7

A time related snap shot

Question 8

What is the most common type of audit report known as

Answer 8

Unqualified opinion

Question 9

What is the role of an internal auditor

Answer 9

To advise the business on how they can better achieve their objectives

Question 10

What three things under COSO should an internal audit look at

Answer 10

1. Effectiveness of Business Operations 2. Reliability and Quality of Financial Reporting 3. Compliance with laws and regulations

Question 11

What are the 5 interrelated components of COSO

Answer 11

1. Control Environment 2. Risk Assessment 3. Control Activities 4. Information & Communication 5. Monitoring

Question 12

What is ERM and what does it do

Answer 12

Enterprise Risk Management - Internal Audit Managing risk using a system such as SOX

Question 13

What are the 4 types of audit

Answer 13

1. Transaction Based 2. Results Based 3. Systems Based 4. Risk Based