Audit I

Question 1

Assurance Services

Answer 1

Objective examination of evidence for the purpose of providing an independent assessment on risk management, control, or governance processes for an organization.

Question 2

Certification

Answer 2

The systematic measurement of characteristics such as education and experience that results in recognition of an individual as one who meets the suggested knowledge and other minimum requirements for a position or a profession.

Question 3

Charter

Answer 3

In terms of the internal audit activity, a formal written document that defines the activity’s purpose, authority, and responsibility.

Question 4

Chief audit executive (CAE)

Answer 4

The top position in an organization responsible for internal audit activities.

Question 5

Code of Ethics

Answer 5

Principles relevant to the profession and practice of internal auditing and Rules of Conduct that describe behavior expected of internal auditors.

Question 6

Compliance

Answer 6

The conformity and adherence to policies, plans, procedures, laws, regulations, contracts, or other requirements.

Question 7

Conflict of interest

Answer 7

Any relationship that is or appears to be not in the best interest of the organization; would prejudice an individual’s ability to perform his or her duties and responsibilities objectively.

Question 8

Consulting services

Answer 8

Advisory and related client services activities, the nature and scope of which are agreed with the client and which are intended to add value and improve an organization’s governance, risk management, and control processes without the internal auditor assuming management responsibility.

Question 9

Continuing professional development

Answer 9

The means by which members of a profession maintain, improve, and broaden the knowledge, skills, and competence required in their professional lives.

Question 10

Engagement

Answer 10

A specific internal audit assignment, task, or review activity, such as an internal audit, control self-assessment review, fraud examination, or consultancy.

Question 11

Engagement objectives

Answer 11

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

Question 12

Governance

Answer 12

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

Question 13

Internal Auditing

Answer 13

An independent, objective assurance and consulting activity designed to add value and improve an organization’s operations; brings a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Question 14

Risk

Answer 14

The possibility of an event occurring that will have an impact on the achievement of objectives; measured in terms of impact and likelihood.

Question 15

Staffing

Answer 15

The process of identifying human capital needs for the internal audit function and internal audit activities and ensuring that qualified individuals are available for engagements.

Question 16

Training

Answer 16

The process in which people acquire the capabilities (knowledge skills acquisition and development) to help them achieve organizational goals and objectives.