Domain 1 Purpose Of Internal Auditing

Question 1

What is the primary purpose of internal auditing?

Answer 1

To strengthen the organization’s ability to create, protect, and sustain value by providing independent, risk-based, and objective assurance, advice, insight, and foresight.

Question 2

How does internal auditing enhance an organization?

Answer 2

By improving the organization’s:
* Successful achievement of its objectives
* Governance, risk management, and control processes
* Decision-making and oversight
* Reputation and credibility with stakeholders
* Ability to serve the public interest

Question 3

What conditions make internal auditing most effective?

Answer 3

When it is performed by competent professionals in conformance with Global Internal Audit Standards, the internal audit function is independently positioned with direct accountability to the board, and internal auditors are free from undue influence.

Question 4

Fill in the blank: Internal auditing is most effective when it is performed by _______.

Answer 4

[competent professionals]

Question 5

True or False: Internal auditing should be influenced by external parties.

Answer 5

False

Question 6

What accountability structure is necessary for effective internal auditing?

Answer 6

Direct accountability to the board.

Question 7

What do internal auditors need to be committed to for effective auditing?

Answer 7

Making objective assessments.

Question 8

List the key enhancements provided by internal auditing.

Answer 8

• Successful achievement of objectives
• Governance, risk management, and control processes
• Decision-making and oversight
• Reputation and credibility with stakeholders
• Ability to serve the public interest

Question 9

Fill in the blank: Internal auditing provides the board and management with _______.

Answer 9

[independent, risk-based, and objective assurance]

Question 10

What are the 15 Principles?

Answer 10

1. Demonstrate integrity
2. Maintain Objectivity
3. Demonstrate Competency
4. Exercise Due Professional Care
5. Maintain Confidentiality
6. Authorized by the Board
7. Positioned Independently
8. Overseen by the Board
9. Plan Strategically
10. Manage Resources
11. Communicate Effectively
12. Enhance Quality
13. Plans engagements effectively
14. Conduct Engagement Work
15. Communicate engagement results and monitor action plans