Business 6: Internal Auditing Standards Flashcards Preview

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Flashcards in Business 6: Internal Auditing Standards Deck (23)
1

Authoritative guidance for internal auditing standards are divided into what two categories?

1) Mandatory
2) Endorsed/strongly recommended

2

Define internal auditing.

Independent and objective assurance and consulting activity designed to add value and improve an organization's operations

3

Internal auditing helps to improve the effectiveness of what three things?

1) Risk management
2) IC
3) Governance processes

4

What does IPPF stand for?

Int'l Professional Practices Framework

5

Who publishes the IPPF?

IIA (Institute of Internal Auditors)

6

The Code of Ethics issued as part of the IPPF applies to whom?

Individuals AND entities that provide internal auditing services

7

The Code of Ethics issued as part of the IPPF provides principles and rules of conduct under what FOUR major headings?

1) Integrity
2) Objectivity
3) Confidentiality
4) Competency

8

What are THREE sources of endorsed and strongly recommended guidance for internal auditors?

1) position papers
2) practice advisories
3) practice guides

9

What do position papers help wider audiences understand?

Significant governance, risk, or IC issues

10

What do position papers help wider audiences define?

Roles and responsibilities of internal auditing

11

What do practice advisories address?

Approach, methodology, and considerations, BUT NOT detailed processes and procedures

12

What do practice guides address?

Detailed processes and procedures in specific circumstances

13

Attribute standards published by the IIA address many of the same issues as what under GAAS?

General standards

14

Performance standards published by the IIA address many of the same issues as what under GAAS?

- Field work standards
- Reporting standards

15

How does the IIA define internal auditing in their Int'l Standards for the Professional Practice of Internal Auditing?

- Independent and objective assurance and consulting activity

16

True or false.

Objectivity is only required for assurance activities.

False
(required for both assurance AND consulting activities)

17

What is a major difference b/w assurance and consulting activities?

Nature and scope of assurance engagement determined by internal auditor WHILE nature and scope of consulting engagement subject to agreement w/ engagement client

18

According to the Independence and Objectivity standards included in the Int'l Standards for the Professional Practice of Internal Auditing, the chief internal audit officer should confirm his independence to the BOD how often?

Annually

19

According to the Quality Assurance and Improvement standards included in the Int'l Standards for the Professional Practice of Internal Auditing, how often must external assessments occur?

At least every 5 years

20

According to the Quality Assurance and Improvement standards included in the Int'l Standards for the Professional Practice of Internal Auditing, must external reviewers be CPAs?

NO, but must demo competence in two areas:

1) Professional practice of internal auditing
2) The external assessment process

21

According to the Performance standards included in the Int'l Standards for the Professional Practice of Internal Auditing, effective management of internal audit activities is characterized in part by conformity to what?

Conformity to the Standards and Code of Ethics

22

According to the Performance standards included in the Int'l Standards for the Professional Practice of Internal Auditing, results of a preliminary risk assessment are used in engagement planning for the determination of the engagement what?

Engagement objectives

23

According to the Standard, communications that are free from errors and distortions and are faithful to the underlying facts are characterized as what?

Accurate