CHAPTER 2: OBJECTIVES AND PHASES OF OPERATIONAL AUDITS

Question 1

FACTORS TO COME UP TO THE
OA OBJECTIVES

Answer 1

1. New rules
2. Poor performance
3. Compliance issue
4. Anomalous revenue or expenses

Question 2

PHASES OF THE OPERATIONAL AUDIT

Answer 2

1. Planning
2. Risk factors
3. Audit procedures
4. Audit procedures
5. Fieldwork

Question 3

TYPES OF AUDIT EVIDENCE

Answer 3

1. Testimonial
2. Observation
3. Document inspection
4. Recalculation/reperformance
5. Professional skepticism
6. Workpapers
7. Flowcharts
8. Internal control questionnaire
9. Condition of workpapers
10. Electronic workpapers

Question 4

the third phase of the audit is the
communication of results, often referred to as reporting. It consists of communicating findings, observations, and best practices noted during the review, and developing recommendations for corrective action.

Answer 4

Reporting

Question 5

Internal Audit will perform a ____ review to verify the recommendations included in the final report have been implemented.

Answer 5

follow-up

Question 6

exist to assess the performance and provide a comparison between what should have been done and what was actually done

Answer 6

Matrix

Question 7

includes scoping, budgeting, defining the population of interest, how testing will be performed, and announcing the audit.

Answer 7

Planning

Question 8

are conditions and other variables that in their present, or absence, as the case may be, either exacerbate or diminish the underlying risk.

Answer 8

Risk factors

Question 9

AUDIT PROCEDURES

Answer 9

1. Trace
2. Tour
3. Verify
4. Vouch
5. Reconcile
6. Observe
7. Foot
8. Cross-foot

Question 10

evidence consists of verbal or written statements or assertions given by someone as proof regarding the matter being discussed,

Answer 10

Testimonial

Question 11

consists of looking at a process or procedure being performed by others.

Answer 11

Observation

Question 12

The evaluation phase of the audit is referred to as fieldwork. This phase includes assessing the adequacy of internal controls and compliance, testing of transactions, records, and resources, and performing other procedures necessary to accomplish the objectives of the audit.

Answer 12

Fieldwork

Question 13

While verifying various transactions, the auditor examines the supporting documents and records. This technique is otherwise called vouching

Answer 13

Document inspection

Question 14

may be performed manually or electronically.

involves the independent execution of procedures or controls that were originally performed by company personnel.

Answer 14

Recalculation
Reperformance

Question 15

Internal auditors should be sufficiently suspicious of data received and A reasonably verify that the information is free from manipulation or modification in ways that can compromise its quality.

Answer 15

Professional skepticism

Question 16

They are a collection of evidentiary material showing the planning done, the fieldwork activities performed, and the support for all Information mentioned in the audit report or other communication of results.

Answer 16

Workpapers

Question 17

is a diagram of the sequence of movements or actions of people or things involved in a process or activity.

Answer 17

Flowcharts

Question 18

helps to evaluate internal controls in specific areas by asking key questions.

Answer 18

Internal control questionnaire

Question 19

Work papers should be neat, easy to read, easy to review, and their appearance should be uniform.

Answer 19

Condition of workpapers

Question 20

prepared using templates in a document management application. In other cases, the work papers are prepared using common tools like Microsoft Word and PowerPoint,

Answer 20

Electronic workpapers

Question 21

CHARACTERISTICS OF HIGH QUALITY WORK PAPERS

Answer 21

• Supervision
• Cross-Preference
• Approved